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PREMIUM GH. LTD
Premium Gh. Ltd entered into an agreement with the Controller and Accountant General’s Department, by which monies were deducted at source on the salaries of workers who had benefited from its Christmas credit sales scheme by way of Hire Purchase. Unfortunately, Mr. Yaw got infected with a virus and passed away shortly after enjoying the credit sales.
Required:
You are the only law student in the accounts department, and your boss has asked you to:
(a) Explain the nature of a Hire Purchase arrangement and the implication of Mr. Yaw’s death.
(b) In TWO (2) ways, differentiate between a Hire Purchase and a Deferred Payment.
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NEGOTIABLE INSTRUMENTS
(a) Explain the following terms:
(i) Bills of Exchange,
(ii) Holder in due course,
(iii) Promissory Notes
(b) You have been engaged as the Accounts Officer of a supermarket in Accra and the manager will like you to explain to him what is meant by Conditional Sale and Protected Goods under Hire Purchase Agreements.
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KOFI
Kofi, acting for and on behalf of Mensah, was authorized to purchase Two Thousand Ghana Cedis (GH₵2,000) worth of corn for Adwoa. Kofi bought the corn in Adwoa’s name at Two Thousand Five Hundred Ghana Cedis (GH₵2,500), which was clearly beyond his authority. Mensah was to ratify. Adwoa then failed to take delivery of the corn.
Required:
(a) Explain whether Mensah would be justified in ratifying the contract entered by Kofi and Adwoa.
(b) Explain the concept of “Agency of necessity”.
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AGENCY RELATIONSHIP
The primary purpose of agency relationships is to bring the principal and third party into contractual relations. Thus, the underlying principle of agency is the power of an agent to alter his principal’s legal relations with third parties.
Required:
(a) Describe TWO (2) types of agency relationship.
(b) Explain FOUR (4) ways in which agency relationships can be terminated.
(c) State TWO (2) rights of an Agent.
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Peter, a 17-year-old undergraduate, had his attachment training at Harmony Rural Bank. The internship coincided with the acquisition and installation of the TechSoft software, and Peter worked alongside the IT team to install the software.
Upon completion of his internship, he returned to college but solicited online for customers for TechSoft Solutions, the software service providers. They occasionally paid him some allowance and, in some instances, Peter assisted the new customers to install the TechSoft software for which he received additional fees that were not made known to the service provider.
Prosperity Rural Bank purchased and installed the TechSoft software with Peter’s assistance but is very unsatisfied with the service as the solution failed to meet their expectations. They threaten court action against TechSoft Solutions for breach of contractual obligations and seek consequential damages. There is no formal contract between Prosperity Rural Bank and Peter, and the service providers are denying liability and claim Peter is a minor who lacked capacity to have entered into a formal agreement with TechSoft software solutions.
(a) You are the only professional in Prosperity Rural Bank, and the Managing Director has come to you seeking to pick your legal brain on this.
(b) Explain the significance of contracts under seal.
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(a) Describe the rights and obligations of principal and agent.
(b) On what bases will termination of an agency relationship occur?
(c) Explain the following agency terms:
(i) General agent,
(ii) Special agent, and
(iii) Agency by necessity
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David, aged 25, is a premiership footballer who lives in a large house at Adenta in Accra. His girlfriend Clara and their one-year-old daughter, Afi, live with him and the house has a swimming pool in the garden. Samuel, who lives next door to David, has erected a canopy for parking vehicles, which is four metres high, close to the fence with David’s garden and passing over the boundary into David’s airspace.
Two weeks ago, Kwame, a farmer, was driving his tractor towards Nima round-about at high speed and he lost control of the tractor. It suddenly crossed the middle of the road and collided with David’s new sports car. David was unable to avoid the collision and he suffered broken ribs and a broken leg as a result of the impact. David was taken to hospital for treatment and was in pain for a week. Doctors had to amputate his damaged leg. As a result, he is unable to play football again and has found a job as a sports reporter on his local newspaper at a modest salary. He is unable to continue his hobby of ballroom dancing too.
(a) Advise David of the remedies he may obtain in respect of the above torts.
(b) Assume David was killed in the accident, advise Clara of any claim she may have in respect of the traffic accident only.
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James bought a ticket to watch his local amateur football team, Unity FC. On the ticket it stated, ‘No one may use any recording equipment in the stadium’. While James was at the match he started using his video camera to record parts of the game and was immediately asked by a club steward to leave the stadium.
Meanwhile, Kofi, a Unity FC defender accidentally kicked the ball over a wall and it landed on Sarah’s head in the garden of a house which backed on to the stadium. Sarah is a tenant of that house and she had a head injury as a result of the ball hit.
In the second half of the match, whilst Daniel was piloting an air balloon near the stadium, the weather turned windy and a hot air blew over the pitch affecting spectator Ama’s eyes and causing her to completely lose her sight. Strikers FC lost the game 4-0. A crowd of 50 supporters gathered on the public road outside the club offices chanting for the manager to resign.
(a) Advice (i) James, (ii) Kofi, (iii) Daniel, (iv) Strikers FC, and (v) the supporters of Strikers FC on their liability in trespass, if any.
(b) ‘The law on vicarious liability is not based on any clear principles or policy and is therefore difficult to apply in any particular case’.
Discuss in relation to the liability of an employer for the acts of an employee.
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Kwame Yeboah is the Head Labourer at Vision Seed Academy School who resides on the campus. Among his duties is the washing of the school buses. In view of frequent water shortages in the neighbourhood of the school, Kwame decided to keep the tap to the main water reservoir open at midnight and fit a water hose to it in order to store enough water for washing. This practice is well known to Management of the school.
One night Kwame could not wake up to turn off the tap as he usually does, which overflowed the reservoir and flowed to the adjoining house where the owner kept fowls. A few fowls died from the sudden overflow of water through the house. The neighbour is upset and is threatening court action against the school. Management of the school thinks Kwame has been negligent and must therefore be made to pay for the dead fowls. Kwame has come to you for advice as the mishap occurred in the line of duty.
You are required to advise in the context of the Labour Act, 2003 (Act 651) and decided cases.
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