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CASE LIST Flashcards

1
Q

Ferrier v Dods (1865)

AGENCY

A

Ratio = an auctioneer who warrants the thing he sells, without disclosing his principal, is potentially personally liable for the warranty. In this case, the purchaser sued the principal though the auctioneer could have been liable.

*Most often the pursuer will bring a claim against the principal because the principal is likely to have more money.

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2
Q

Bennett v Inveresk Paper (1891)

AGENCY

A

Ratio = Once Principal discloses himself, he may elect to sue the 3rd Party, but once disclosed, the Principal opens himself up to being sued as well)

*Held, on proof that the pursuer had appointed the merchant to be his agent, and on disclosing himself as principal, he had sufficient title to sue the 3rd party.

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3
Q

Liverpool Friendly Society v Houston (1900)

AGENCY

A

IMPLICATIONS OF THE AGENT’S FIDUCIARY DUTIES:

Ratio = Duty not to disclose any info which is confidential to the principal.

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4
Q

McPherson v Watt (1877)

AGENCY

A

IMPLICATIONS OF THE AGENT’S FIDUCIARY DUTIES:

Ratio = Agent must not put his own interests above those of the Principal.

Concerned house purchase in Aberdeen where the advocate acting on behalf of the sellers sold the house to ‘his brother’ for a good price, wherein he was actually buying the house for himself.

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5
Q

Jack (2009)

AGENCY

A

Ratio1 = NO SECRET COMMISSIONS OR BRIBES.

Ratio2 = Agent’s Fiduciary Duty = “if you undertake to act for a man, you must do so 100%, body and soul, for him”.

Concerned a Footballer’s agent who took some money (3K) on the side in order to procure a transfer deal.

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6
Q

List 5 General Duties of Agents

AGENCY

A

1) Duty to follow Instructions (Reg. 3(2) or Custom of Trade.

2) Duty of Skill and Care: must perform using the skill and care reasonably expected from a reasonably competent/careful member of the concerned profession
(CASE = Copland v Brogan 1956)

3) Duty to Keep Accounts: Verbal Accounting is possible.
4) Duty Not to Delegate: Unless permitted as a custom of the trade - CASE = Robertson v Foulds (1860)
5) Right of Relief: Where loss accrued to Principal based on ultra vires act of agent, agent must compensate that loss to Principal - CASE = Milne v Ritchie (1882)

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7
Q

Milne v Ritchie (1882)

AGENCY

A

Ratio = Where loss accrued to principal based on ultra vires act of agent, agent must compensate that loss to principal.

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8
Q

List 4 Rights of Agents:

AGENCY

A

1) Principal’s Duty of Good Faith - Reg. 4(1)

2) Agents Right to Remuneration - Reg. 6(1) Remuneration for goods forming the subject of his agency contract.
CASE = Kennedy v Glass (1890)

3) Agent’s Right to Commission - entitled where “brought about, or materially contributed to by agents actings”.
4) Principal’s Duty to Continue Business - Principal may be under a duty to continue his business to secure the agent’s remuneration.

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9
Q

Ways a Contract of Agency Terminates:

AGENCY

A

Completion of Transaction, Mutual Agreement, Death/Bankruptcy, Insanity of A or P, Material Breach by Agent, Principal ceasing business.

*Agent usually due payment for ‘indemnity’ or ‘compensation’ on termination.

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10
Q

Gailey v Environmental Waste (2004)

AGENCY

A

Ratio = Regulations do not apply where the actings of the Agent are ‘secondary’ (Sched. 2 Para 2)

Concerned Waste Disposal agent claiming retroactive commission - granted only partial commission because his actings and role were considered secondary under the CARs.

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11
Q

Calculation of Compensation on Termination:
3 Case Lineage
AGENCY

A

1) King v Tunnock (2000) - Benchmark of 2 years gross commission may be used as a guide for courts calculating compensation.
2) *Lonsdale v Howard & Hallam (2007) - Ratio = No reason to adopt a 2 year compensation calculation like in Tunnock; Ratio2 = VALUE OF AN AGENCY DEPENDS ON CIRCUMSTANCES ACTUALLY EXISTING AT THE TIME OF TERMINATION, INCLUDING EARNING PROSPECTS, AND WHO WOULD BE PREPARED TO PAY. Here claimant’s agency commission had been minimal as the business was winding up and basically becoming redundant - Held, 5K compensation was sufficient.
3) Scottish Power v Taskforce (2009) - Ratio = in Scottish cases, the Com. Agent’s statutory right to indemnity/compensation only arises at full termination not partial termination.

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12
Q

Advantages of Partnership Compared to LLC:

PARTNERSHIP

A

1) Lack of Formalities in setting up a partnership
2) Affairs of the partnership remain private
3) flexibility in running the partnership; partners determine their own management and organization

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13
Q

Advantages of LLC compared to Partnership:

PARTNERSHIP

A

1) Easier to grant securities, particularly floating charges
2) Ownership transferred easily
3) Obv adv. is Limited Liability. Partnerships have unlimited joint and several liability for the debts of the partnership.

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14
Q

Sharpe v Carswell (1910)

PARTNERSHIP

A

DETERMINING A PARTNERSHIP

Ratio = mere ownership of shares does not necessitate being a partner.

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15
Q

Alna Press v Trends of Edinburgh (1969)

PARTNERSHIP

A

DETERMINING A PARTNERSHIP
Ratio = if you have a share of profits, there is evidence that you’re a partner but that does not in itself make you a partner in business. Here concerned partners who owned trains, partnership had ceased and they were consider creditors only.

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16
Q

S. 9 Partnership Act (1890) - Liability of Partners

PARTNERSHIP

A

Every Partner in a firm is both jointly and severally liable for all debts and obligations of the firm incurred while he is a partner. After his death his estate is also severally liable in a due course of administration for such debts and obligations.

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17
Q

Liability of Incoming and Outgoing Partners in Partnership

PARTNERSHIP

A

Partnership 1890 Act:

S. 17(1) - Incoming partner not liable for anything done before he became a partner.

S.17(2) - retiring partner remains liable for debts/obligations incurred before his retirement.

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18
Q

Banks Case (2000)

or

S. 10 Partnership Act 1890

PARTNERSHIP

A

Ratio = Duty of care to exercise reasonable care for the interests of co-partners. No higher standard for parters inter se, firm was liable as a whole.

Concerned negligence of individual partner giving advice to client.

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19
Q

S. 19-31 of Partnership Act (1890) = DUTIES OF PARTNERS

PARTNERSHIP

A

S. 28 Duty of Disclosure (financial affairs/all affecting P.)
No Secret Profits
S. 30 No Compete with the firm
S. 25 Expulsion by majority not affirmed, unless agreed to in constitution of the partnership
S. 24 Presumptions Regulating the Partners: Right to vote, duty of indemnity etc…

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20
Q

Dissolution of the Partnership

PARTNERSHIP

A

Types of Dissolution

1) Rescission of Partnership Agreement
2) Dissolution by notice
3) Dissolution by Expiry of Term
4) Dissolution by Death/Bankruptcy
5) Dissolution by Illegality

*or S.35 Judicial Interventions

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21
Q

Provisions of the Limited Partnership Act (1907)

PARTNERSHIP

A

THIS DOES NOT CONCERN AN LLP - THIS CONCERNS A PARTNER IN A PARTNERSHIP, WHO HAS A LIMITED ROLE.

  • S. 6(1)(a) provides that if the limited partner takes part in management, then he loses his limited liability.
  • Limited partners basically have less rights than ordinary partners: can’t bind the firm, not entitled to dissolve the firm, can’t stop general partners from adding new partners and so on…
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22
Q

Provisions of the Limited Liability Partnership Act (2000)

LLP

A

S. 1 - LLP has distinct legal personality from its members.

S. 2 - Must be an incorporation document subscribed to by two or more people ‘associated with carrying on a lawful business with a view to profit’
*Document must state: Name of LLP, registered office, Designated members.

S. 5 - Mutual Rules of the LLP members governed by agreement, if can’t reach agreement, S. 15(c) allows provisions in company law to be relevant to LLPs.

S.6 HOW PARTNERS INTERACT WITH THE OUTSIDE WORLD = Every Member is an Agent of the LLP.
S.6(4) where a member of the LLP is liable to any person (outwith the LLP) as a result of wrongful conduct or omission in the course of the business of the LLP or with its authority, the LLP is liable to the same extent as the member.

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23
Q

LIABILITY OF THE MEMBERS

& THE REAL REASON WHY LLPs WERE CREATED:

LLP

A

In Regular Partnerships (1890 Act) clients can sue jointly and severally both the Partnership and also against individual partners. The Client can also raise a delictual action against the individual partner who provided negligence advice.

***In an LLP, the LLP is a separate legal entity and the client’s contract lies with that entity alone. The client can raise an action against the LLP but there is no joint and several liability of each individual member - which means the client cannot sue individual partners/members. The delictual route is still available of course.

THE REAL REASON LLP’s WERE CREATED:
-created for when LLPs fail, the contributions are limited much more than when an 1890 Partnership fails.

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24
Q

Effect of Insolvency on an LLP:

LLP

A

1) if wound up, present and past members who have agreed to be liable to contribute to the assets of the LLP in the event of liquidation will be liable to the extent so agreed.
* this is a benefit, could have agreed to minimal liability.

2) CLAW-BACK PROVISIONS: an individual could become liable for the debts of the LLP if within the 2 years prior to the winding up of the LLP:
he withdrew any property of the LLP during that period. (form of withdrawal not important)

Property defined as: any asset of the company (shares/salaries, payment of interest on a loan to the LLP)

To achieve a Claw-Back, liquidator apples for court order. Liquidator must prove that member had reasonable grounds to suspect the firm going under. (Scottish Regulations 4(2), and Shed. 3)

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25
Q

Company Law: List the Main Forms of Businesses

COMPANY LAW

A

Sole Trader, Ordinary Partnership (1890 Act), Limited Partnership Act (1907), LLP (2000), Company (Companies Act 2006 & 1985).

*Company law and copy insolvency no devolved!

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26
Q

5 Core Characteristics of a Company:

COMPANY LAW

A

i) Separate Corporate/Legal personality
ii) Limited Liability
iii) Centralised Management under a broad structure
iv) Shareholder Control
v) Free Transferability of Shares

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27
Q

LIST THE TYPES OF COMPANY’S:

COMPANY LAW

A

i) Unlimited Company (S. 3(4) CA06)
ii) Private Limited Company (S.3(1-3), S.4(1) CA06)
iii) Publicly Limited Company (S.3(1-3), S.4(2) CA06)
iv) Company Limited by Guarantee (S.3(1), S.4(1-2), S.5 CA06).

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28
Q

Consequences of Companies Owning Shares in Other Companies:

COMPANY LAW

A

i) Holding / Parent Companies
ii) Subsidiaries
iii) Company Groups

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29
Q

THE LIMITATION OF A MEMBER’S (shareholders) Liability is restricted to:
COMPANY LAW

A

i) the amount of the par value of the shares they initially bought with the company (where a company has share capital)
ii) to the amount of the guarantee, where the company is limited by guarantee

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30
Q

EXPLAIN LIABILITY IN “PARTLY PAID” SHARES:

COMPANY LAW

A

We know shareholders are only liable of the par value of the shares they subscribed to (i.e., 100 shares @ £1.00 each = £100); limited to £100 even if they make a profit on those shares. Sometimes a company might not need all the capital right away, and therefore make it more attractive to have partly paid shares (i.e. pay 60p of the £1.00 / each shares). However, where this happens the company can make a ‘call’ on the shareholder for the balance of the 40P, and a creditor can take security over the outstanding sum owed to the company.

*See S. 547 CA 06 and S. 74 Insolvency Act 1986

31
Q

EXPLAIN “PIERCING THE CORPORATE VEIL”:

COMPANY LAW

A

is an expression which means disregarding the separate legal personality of the company, and opening up personal liability (usually for a company director) for something done as agent or as joint actor.

32
Q

Main Forms of Piercing the Corporate Veil:

Company Law

A

1) if the company is being used to evade legal obligations
2) Public Policy: if the controllers of the company are enemy aliens.
3) Statute: Fraudulent or Wrongful Trading (S.213, Insolvency Act 1986) Contribution then to be taken from company directors.

*Defence to Wrongful Trading = S.214 of the IA86, company director not personally liable if he’d taken every step to minimize the loss to creditors.

33
Q

Define: Agency

A

A relationship usually created by contract, in terms of which the principal instructs the agent to act on his behalf in order to produce legally binding effects for the principal. The relationship is fiduciary in nature ( a relationship of trust), i.e. the agent must show a high degree of loyalty to the principal.

34
Q

Define: Ratification

A

Where no prior authority has been given, the acts of the agent may be ratified (APPROVED OF) by the principal.

35
Q

Define: Implied Authority

A

(can only apply to general agents, not special) If the contract is silent as to the extent of authority of the agent, the agent has implied authority to do whatever is necessary and incidental to the completion of the transaction. Custom and usage of the trade can help to define the scope of implied authority.

36
Q

Define: Election

A

3rd Party must elect to sue either the Agent or the Principal. An election, once made, IS FINAL. No Joint and Several Liability between agent and Principal.

CASE: SAID v BUTT (1920) Firstly same as above. ALSO, If concealment of principal was intended as deception, both may be sued.

37
Q

Define: Del Credere Agency

A

Where an Agent guarantees the proper performance of the third party to the principal. (may now be superseded)

38
Q

Commercial Agents Regulations: Applies to whom?

AGENCY

A

(1 Jan 1994) - Apply to all UK agreements in existence on that date. Apply where activities took place in UK, regardless of nationality of principal/agent (reg. 1(2)).

-Seeks to harmonize UK/EU Agents.

39
Q

Define: indemnity

A

Security or Protection against a loss or other financial burden.

Reg. 17(2) indemnity must be specifically opted into.
Reg. 17(3) Agent obtains benefit of his work which would otherwise accrue to the principal on termination.
Reg. 17(4) Payment subject to 1 year commission max.

40
Q

Define: Compensation

A

The commercial agent is entitled to compensation for the damage which he suffers as a result of the termination of his relations with the principal.

Reg. 17(6)
Reg. 17(7)

41
Q

Define: PARTNERSHIP + 3 Essential Characteristics

A

S. 1(1) of 1890 ACT:
a type of business organization commonly chosen by those who carry on a business with a view to profit. They range from very small organizations consisting of just 2 partners running a local store, to large international firms of accountants. Some regulatory bodies require that their members operate through a partnership, such as dentists. Others chose to operate as a partnership rather than to incorporate as an LLC.

3 Essential Characteristics:

1) a relation that subsists between persons
2) carrying on business
3) with a view to profit

42
Q

Define: Delectus Personae

A

Choice of a particular person - important in a legal sense, preventing assignation or delegation of a duty by the person chosen.

43
Q

Define: LLP

A

Something of a hybrid between a partnership and a company - central features are organization flexibility and limited liability. The LLP Act (2000) creates a new form of legal entity known as the LLP; an LLP is a body corporate (w/ separate legal personality from its individual members) which is formed by being incorporated (S.1(2)). S. 1(3), an LLP has unlimited capacity. The Law relating to Partnerships does not apply to LLPs (S.1(5)).

44
Q

Define: Designated Member (in LLPs)

A

in addition to normal duties of a member, a DM bears administrative burdens on behalf of the LLP, i.e. filing annual accounts and advising the registrar of companies.
-Must be two DM’s at all times, failure to nominate them means all are designated as DM’s.

45
Q

Define: Incorporation

A

When a company is created, i.e. brought to life; 2 main consequences are Separate Legal Personality, and Limited Liability (Excluding unlimited companies).

46
Q

Define: Limited Liability in Company Law

A

Means that the rights of the company’s creditors are confined to the assets of the company’s members (shareholders). The liability of the company is not limited at all. Creditor’s rights can be asserted to the full against the company’s assets. IT IS THE LIABILITY OF THE MEMBERS WHICH IS LIMITED.

47
Q

Define: Par Value of shares (also known as Nominal Value of Shares

A

Value of a share when it is first issued to the initial subscriber of that share. It is a constant, it doesn’t change. S. 542 CA06 - “nominal value of shares”

48
Q

Define: Market Price (also known as Sale Value)

A

If the company does well, the value of the shares may increase and the shareholder may be able to sell his/her/its shares to a buyer, at a higher price. Here, this mine goes to the shareholder. Thus the sale (or market price) of a share is different from its par value.

49
Q

Define: Rights Issues

A

When the company needs more equity, they can make the total amount of shares available larger (i.e. from 15,000 to 20,000 shares). In doing so they usually offer shareholders a proportionate deal so that the shareholder retains the same stake in the company. E.g., J holds 6,000 shares of 15,000 total; J takes up a 1 for 3 offer the company has given, he will then have 8,000 shares of a total of 20,000. If J doesn’t take the offer, he only have 6,000 of 20,000 shares. He retains his 40% stake - since these new shares are issued by the company and not sold by an existing shareholder, the money goes to the company, i.e. 2,000 shares x £2.00 = £4000. Also, the share price is higher than the par value, but lower than the market price.

50
Q

Define: Under-Capitalization

A

‘£2.00 companies’ where a director/shareholder protects himself from liability by owning 2 shares of £1.00 each. Businesses must be wary of under capitalization, could lead to insolvency.

51
Q

Define: Holding Company (Parent Company)

A

S. 1159(1) CA06

3 Situations:

1) A company (the holder) has a majority of the voting rights in another company (the subsidiary) - majority of voting rights.
2) A company (the holder) is a member of another company (subsidiary) and can appoint or remove a majority of the subsidiary’s board of directors. (i.e. power RE appointment or removal of most of the subsidiary’s board)
3) A company (the holder) is a member of another company (subsidiary) and controls by itself, or collectively, a majority of the voting rights in the other company (the subsidiary). (i.e. control either alone or with another of most of the sub’s voting rights).

52
Q

Define: Subsidiary

A

S. 1159(1) CA06

The Reverse of the 3 examples given in defining a holding company. Basically where more than 50% of the shares are owned by another company (with the consequent voting rights). A company is also a subsidiary if the company that owns it is also a subsidiary.

NB. S. 136 CA06 =a subsidiary cannot own shares in a parent company.

“WHOLLY OWNED SUBSIDIARY” = S.1159(2) - one company owns all the shares in another.

53
Q

Define: Associated Company

A

A company with a stake in another company of less than 50% of that other company’s voting rights.

54
Q

Define: Ordinary Shares

A

give the holder the right to vote on company business at meetings of the company, as well as a dividend (proportionate return on the company’s profit). Commonly 1 vote per share.

55
Q

Define: Company Groups

A

Combination of subsidiaries and holding companies - 20th century phenomenon - involves a series of companies connected by common ownership, with an ultimate holding company. Each company remains a separate legal entity though.

E.g. #1 = A plc owns all shares in B ltd, B ltd owns all shares in C ltd. C ltd owns all the shares in D ltd. A plc is the ultimate holding company.

E.g. #2 = A plc owns all shares in A, B, C, and D ltd.

56
Q

Define: Group Accounts

A

S. 394, 399, 402 CA06

For the purpose of clarity and transparency, the companies act 2006 requires that all company groups consolidate their accounting into one. This does not affect the separate legal status of each company.

57
Q 
Buckhurst Properties (1964)
AGENCY
A

Apparent Authority.

If the principal acts in a manner which suggests to the 3rd party that the agent is authorized, the principal cannot thereafter seek to deny that the agent is properly authorized. Rationalised as a Personal Bar in Scots Law.

58
Q

List the 5 Case Lineage in Conditions for Effective Ratification:
AGENCY

A

CONDITIONS FOR EFFECTIVE RATIFICATION:

1) Boston Deep Sea Fishing (1957) - Principal must have legal capacity to enter into contract at relevant time (incorporation)
2) Lockhard v Moodie (1877) - Agent must have entered contract as agent, not as himself.
3) Tinevelly (1894) - the principal must Exist.
4) Goodall v Bilsland (1909) - Ratification outwith a prescribed time limit by the principal will be ineffective.
5) Forman (1900) - The principal must make an informed choice.

59
Q

Steward v Shannessy (1900)

AGENCY (defines an External Agency Relationship)

A

Where agent acts for named and disclosed principal:
where this is the case, a contract is created between the principal and 3rd party through the medium of the agent - the agent is not a party to this contract and should not incur any liabilities to the 3rd party - subject to the presumption that the 3rd party signs a written contract and is bound by it.

60
Q

Halifax v DLA Piper (2009)

AGENCY

A

Non-Existent Principal.
Ratio = Agent acts for a consortium of individuals who never ended up forming; found not personally liable because none of the parties intended for the agent to be personally bound.

61
Q

Khan v Miah (2000)

PARTNERSHIP

A

Ratio = When a Partnership is created is not when the business starts trading but more so when the prep work begins and overhead has began to be paid. Here partnership existed even though it hadn’t opened for trading yet.

62
Q

Barthelemy (2011)

LLP

A

Ratio = purports that members of an LLP owe no fiduciary duties to one another, and any such duties would have to be imposed by contract.

63
Q 
VTB CAPITAL (2013)
COMPANY LAW
A

Ratio = a company should be treated as being a person by the law in the same way as a human being.

64
Q 
Belvedere Fish (1921)
COMPANY LAW
A

Ratio = a company does not act as the agent of the directors, and they do not incur personal liability for the acts of the employees.

65
Q

Evans (1985)

COMPANY LAW

A

Ratio = Comp Directors may be personally liable if they directed or procured the commission of a wrongful act.

66
Q

*** SALOMON V SALOMON (1897)

COMPANY LAW

A

Ratio = established separate legal personality of the company meaning that shareholders were not subject to the company’s creditors. (BEGINNING OF THE CORPORATE VEIL)

R2 = a company is separate from the people who own it or those who have a stake in it (shareholders).

67
Q

Kelner v Baxter (1866)

A

Ratio = pre-incorporation contracts incur personal liability.

68
Q

**MACAURA V NORTHERN ASSURANCE (1925)

COMPANY LAW

A

TIMBER CASE.

Ratio = a company can also own assets, and although a person may own all, or nearly all of the shares in said company, they have no rights in relation to the assets which are in the company’s name.

Concerned man who sold his timber to his own company (sole director); timber burned up; the insurance policy on the timber was in his own personal name and being that the timber was now owned by the company (a separate legal person), he no longer had title to bring the claim.

69
Q

*Lee’s v Lee’s Airfarming (1961)

COMPANY LAW

A

Ratio = you can be an owner (of all shares), sole director, and an employee of your own company. It was affirmed that he was an employee of the company on his death, and his widow was therefore allowed to receive his worker’s compensation.

70
Q

Meridian Global Funds (1915)

COMPANY LAW

A

(Attribution, of a decision of a natural person to the company itself)
CIO bought substantial shares in a public issuer for the company without comp directors knowledge. In doing so, he broke a law necessitating a duty to give notice to some public authority. A special rule of attribution (assigning some quality or character to a thing) was needed to determine whose act/knowledge/state of mind the CIO (his own or the company’s) was using. Held, action attributed to the company because he was doing something for the best interest of the company and not himself.

71
Q

**ADAMS V CAPE INDUSTRIES (1990)

COMPANY LAW

A

Ratio = Each company has a separate legal personality, meaning that a parent company is not liable for the debts of a subsidiary; valid use of the corporate form.

*case shows why people use subsidiaries - a back-up plan against creditors.

Held, court of appealed rejected that all 3 companies (2 in ENG, 1 USA) were a single economic unit. Legally, all 3 were separate entities. USA comp wasn’t an agent of the other two, and this was a legitimate use.

72
Q

*WOOLFSON V STRATHCLYDE RC (1978)

COMPANY LAW - OLD TEST FOR PIERCING THE VEIL

A

“MERE FACADE TEST”

Ratio = it is appropriate to pierce the corporate veil where circumstances exist indicating that it is a mere facade concealing true facts. “facade/sham” test is put to rest in PREST and doubted but not overruled in VTB.

73
Q

**PREST V PETRODEL (2013)

COMPANY LAW

A

REJECTS THE ‘MERE FACADE’ TEST IN WOOLFSON.

NEW TEST FOR PIERCING THE CORPORATE VEIL = THE EVASION PRINCIPLE.

CONCERNED - wife who sought to pierce the veil in order to get bigger payout on divorce. Held, Cannot Pierce.

Lord Sumption: “fraud unravels all” held, you need to identify relevant wrongdoing.

Ratio = THE EVASION PRINCIPLE:
THE COURT MAY DISREGARD THE CORPORATE VEIL IF THERE IS A LEGAL RIGHT AGAINST THE PERSON IN CONTROL OF IT WHICH EXISTS INDEPENDENTLY OF THE COMPANY’S INVOLVEMENT, AND A COMPANY IS INTERPOSED SO THAT THE SEPARATE LEGAL PERSONALITY OF THE COMPANY WILL DEFEAT THE RIGHT OR FRUSTRATE ITS ENFORCEMENT.

  • some overlap, but different than the concealment principle.
  • Piercing the veil must be used as a last resort.
74
Q

Gilford Motor v Horne (1933)

COMPANY LAW

A

Example of Evasion Principle = use of a company to try to get around a restrictive convenient in contract of employment.

i.e. leaves a company that he works for where his contract bound him to not work in the same field for 5 years. He immediately incorporates and starts working in the same field under the separate legal personality of the company.

Business Entities (1 decks)

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