BUSINESS LAW PRACTICE Flashcards
Can death dispose of CGT purposes?
No. beneficiaries do not have to pay CGT on assets received
what is a frustrated contract?
- due to an unforeseen event, it becomes impossible to perform the contract or the nature of the contractual obligations changes significantly.
- can lead to the contract being automatically discharged, releasing the parties from their future obligations
what are the rules regarding frustrated contracts? Law Reform (Frustrated Contracts) Act 1943
- any payments made before the frustrating event are recoverable.
- amount that was due for payment before the frustrating event ceased to be payable.
- As per common law, the parties are discharged from any future obligation.
If a party has obtained a valuable benefit before the frustrating event, the court may award the provider of that benefit a just sum.
If a party breaks an innominate term of a contract what are the innocent party’s options?
- Affirm the contract
- Discharge the contract
If an innonimate term is broken and the innocent party chooses to affirm the contract, can they change their mind?
No
What are the 5 categories of circumstances that render a contract ‘radically different’ ?
- Government intervention
- Crucial person to contract unavailable
- Illegality
- Destruction of subject matter
- Non-occurrence of fundamental event
What is the doctrine of complete performance?
Performance obligations of contract must be precise and exact
What are the 4 exceptions to to the doctrine of complete performance
- Divisible obligations
- Substantial performance
- Wrongful prevention
- Voluntary acceptance of part performance
is inflation a good enough reason to say that a contract should be frustrated because the party is losing profit?
no.
- contract becoming more expensive, or less profitable, will not usually result in the contract being frustrated: Tsakiroglou v Noblee Thorl.
for a contract to be deemed substantially performed and work slightly defective, what fraction must the cost of rectifying the defect be under?
The cost of rectifying the problem must be less than 1/14th the contract price
Do auditors owe a duty of care to shareholders and directors when completing annual audits?
but auditors do not owe a general duty of care to the shareholders or directors when conducting their annual audit.
do you have to publish certain info to the public if you are a limited liablity partnership? (law firms are LLPs)
Yes,
some info is made available
do gift receipts confer the rights of contractual benefits?
Yes.
when must a fixed charge be registered? (how many days)
within 21 days of the creation of the charge.
can you expel a partner by majority vote?
no
