a. The FOUR (4) categories of persons that are disqualified from joining the formation of a company are:

i. a person less than eighteen (18) years old;

ii. a person of unsound mind and has been so found by court;

iii. undercharged bankrupt;

iv. a person disqualified under S.254 of CAMA from being a director of a company; and

v. a corporate, other than its accredited representative on the board.

b. The rules governing passing of property under the Sale of Goods Act are as follows:

i. where there is an unconditional contract for the sale of specific goods in a deliverable state, the property passes when the contract is made irrespective of the time of payment;

ii. where the contract is for specific goods and the seller is bound to do something to the goods to put them in a deliverable state, the property in goods does not pass until this has been done and the buyer has notice thereof;

iii. where the specific goods are in a deliverable state but the seller still has to do something, such as weighing, measuring or testing the goods, the property does not pass until such an act has been done and the buyer has notice thereof;

iv. where goods are delivered on approval or sale or return, the property passes:

• when the buyer signifies his approval or acceptance to the seller; or
• when the buyer does any other act adopting the transaction; or
• where the buyer retains the goods beyond the agreed time or beyond a reasonable time; and

v. where the sale is for unascertained or future goods by description, the property passed when the goods of that description, which in a deliverable state, are appropriated unconditionally to the contract by one party with the express or implied assent of the other.

c. In mediation, a neutral third party mediates between the disputing parties, but since he has no authority to make a decision that binds the disputing parties, he only assists them to reach a resolution of their dispute. Arbitration, on the other hand, is a formal process by which a neutral third party, called an arbitrator, exercises authority to bind the parties by his decision after listening to the disputing parties.