- 20 Marks
Question
a. Umoru created a private trust of which he appointed Godwin and Tohib as trustees. Tohib wants to delegate his function as a trustee to his trusted friend, Mr. Murphy, a very conscientious person, because of his busy work schedule. Godwin has declined the appointment.
Required:
State the law and advise the parties. (5 Marks)
b. The Companies and Allied Matters Act (CAMA) provides for the appointment of company auditors.
Required:
State FIVE persons disqualified from being company auditor. (5 Marks)
c. The deployment of technology has greatly improved commerce.
Required:
Explain TWO types of the following e-commerce contracts:
i. Click-through
ii. Shrink-wrap
iii. Browse-wrap (5 Marks)
d. When a person dies intestate, the court may appoint persons to manage his estate.
Required:
State FIVE duties of personal representatives of a person who died without a will. (5 Marks)
Answer
a. Delegation of trustee duties:
The office of a trustee imposes legal duties that the trustee is obligated to carry out. No one could be compelled to accept the office of a trustee. A person appointed as a trustee may reject or disclaim the appointment in writing. Tohib cannot delegate his duties to Murphy because a trustee’s duties must be carried out personally unless otherwise stated in the trust deed or permitted by law.
b. Persons disqualified from being a company auditor:
- An officer or servant of the company
- A body corporate, except where all partners are qualified
- A person indebted to the company in excess of ₦500,000
- A shareholder or a spouse of a shareholder
- A person responsible for maintaining company debenture records
c. Types of e-commerce contracts:
i. Click-through: Requires a user to click a button or check a box agreeing to the terms of service before proceeding.
ii. Shrink-wrap: An agreement attached to or inside the packaging of products, becoming binding once the package is opened.
iii. Browse-wrap: Terms and conditions are available on a website but do not require explicit agreement from the user.
d. Duties of personal representatives for an intestate estate:
- Collecting and preserving the estate
- Paying off debts and liabilities
- Distributing the estate according to the law
- Filing estate tax returns
- Defending the estate against claims
- Tags: Auditor, Company Law, E-Commerce Contracts, Intestate Succession, Personal Representatives, Trustee
- Level: Level 1
- Topic: Law of Trusts
- Series: NOV 2023
- Uploader: Theophilus