Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

M05 Insurance Law > Chapter 2 - Legal Personality > Flashcards

Chapter 2 - Legal Personality Flashcards

You may prefer our related Brainscape-certified flashcards:
MBE flashcards MPRE flashcards Civil Procedure 1L flashcards
1
Q

The law divides persons generally into two broad categories:

A
  • natural persons

- juristic persons (or corporations)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The crown is a special case which does not fit either into natural persons or juristic persons. It is a legal entity which for most purposes is, more or less equivalent to…

A

The government

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The crown includes the reigning monarch who has both a ?????? Capacity and…

A

Private Capacity as a natural legal person and an official capacity as part of the crown.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The legal position of the crown is generally now governed by…

A

Statute, the crown proceedings act 1947

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

For the purposes of law, all human beings are referred to as…

A

Natural legal persons.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Being a natural legal person Begins and ends…

A

At birth and death

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Some classes of natural person have a special status which may carry with it a limited capacity, that is more limited….

A

Rights and duties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Those with a limited capacity include…

A

Minors, persons of unsound mind, bankrupts and aliens.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is status?

A

Indicates that a person is part of a particular class or group. Each of which imposes particular obligations and gives particular rights.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

A persons status indicates that he belongs to a particular group whereas capacity…

A

Capacity refers to what that person is legally entitled to do.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Juristic persons, or corporations, are non-human legal entities. For this reason they are sometimes known as…

A

Artificial legal persons.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Who is referred to as a minor?

A

The family law reform act 1969 reduced the age of majority from 21 to 18 years and a person who is under that age is referred to in law either as an infant or a minor, although the latter term is more common.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

With regards to contracts, there are special rules(discussed more in chapter 4) with regards to minors because…

A

Special rules to protect minors to enter into contracts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In the law of torts,(discussed more in chapter 3) minors are usually…

A

Fully responsible for their acts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

As far as property is cancerned for minors, they may own personal property such as clothing, books, sports equipment or a car but may not hold what is known as…

A

A legal estate in land.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

A minor cannot own a house outright but can do so indirectly as a …

A

Beneficiary of a trust

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fur the purposes of criminal law, minors divide into two classes:

A
  • full criminal responsibility applies in the case of minors over the age of 10
  • children under the age of 10 ads presumed incapable of committing s crime and this presumption can not be rebutted.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Minors involved in litigation must sue through a …

A

Next friend - an adult who is primarily responsible for any costs awarded against the minor. Minors also defend civil actions through a litigation friend, but a defendant friend/litigation friend is not liable for costs.

The father, mother or legal guardian of the minor normally acts in these capacities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A minor cannot vote at elections and must be 18 before they can take a …

A

Seat in Parliament or on the council of a local authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A minor cannot marry under the age of 16 or marry without…

A

Consent (usually of the parents) under the age of 18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

A minor may not sit on…

A

A jury

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

A minor cannot make a valid will unless…

A

They are a member of the armed service on active military service or a seaman at sea.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

In many cases the legal capacity of people who are suffering from mental disorder is restricted, depending on the seriousness of the …

A

Illness.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Many of the provisions regarding those of unsound mind are detailed in the…

A

Mental health acts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The contractual capacity is ??????.

. For those with a mental health condition.

A

Restricted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Persons of unsound mind are generally responsible for their torts, unless the tort requires a particular state of mind (such as the intention to deceive) which the patient with a mental disability is incapable of forming. A patient with a mental disability would not be liable for actions which were involuntary, I.e those actions over which they had …

A

Literally no control.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

The rights of a person of unsound mind go transfer property or make a will may be restricted. In this context we should mention the court of protection, which is part of the chancery division of the high court. This was established for the protection and management of the property and affairs generally of persons suffering from mental illness. The court has jurisdiction over any patient who, in the opinion of the judge, is incapable by reason of mental disorder of managing and administering his property and affairs. The court has the power to appoint a deputy who may be given such duties and powers as are necessary to …

A

Manage the patients affairs. The deputy is usually a spouse of near relative of the patient.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

A person suffering from disability within the meaning of the mental health acts cannot directly become involved in…

A

Civil litigation. They can sue through a best friend however.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

If a person of unsound mind goes through a marriage ceremony, but cannot understand the significance of the ceremony and the responsibilities which the status of marriage brings, the marriage will be…

A

Void.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

If a person is unable to pay their debts, some or all of their creditors (to whom at least £750 must be owed) may ask the court to make a bankruptcy order against them in respect of those debts. The debtors stairs then pass into the hands of an…

A

Insolvency practicioner (an accountant or solicitor who specialises in this field)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

A person who is adjudicated bankrupt loses certain…

A

Rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

An in discharged bankrupt cannot:

A
  • sit in either Houses of Parliament
  • be a member of a local authority or council
  • act as a magistrate
  • act as a company director or take part in the management of a company without the permission of the court which made the bankruptcy order
  • obtain credit over a certain figure(currently £500) without declaring that they are an undischarged bankrupt.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

As a result of changes introduced by th enterprise act 2003, most bankrupts will automatically be discharged after …

A

One year.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

The status of marriage and the legal relationship between married persons is part of…

A

Family law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Marriage is a contract, although quite a specific example. It shares many charetsersitcs with other contracts, for example may be either fullly valid, or void, for example where either party is under 16) or voidable (for example, in cases of duress or mistake) again, like any other contract it can be dissolved, in this case commonly known as…

A

Divorce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

The status of marriage brings with it a number of legal consequences, for example, the parties have a generally duty to live with each other and support each other financially. In most respects the rights and duties of married people are the same as those of …

A

Single people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Spouses can she each other in either contract or tort. However the law reform (husband and wife) act 1962 (which abolished the old common law preventing one spouse from suing another in tort) provides that the court may stay the action if it appears that…

A

No substantial benefit would accrue to either party.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

A benefit from suing wife etc would be that covered by…

A

Insurance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Rights concerning the ownership of property applied to married people in the same way as they do to those who are unmarried. One marriage partner may even be charged with…

A

Stealing the property of the other although, normally, leave of the director of public prosecutions is required if this is to happen.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Where there is a dispute between spouses as to the title or possession of property, either party may apply to the court for the issue to be determined. On divorce, the courts have additional powers to achieve a fair destruction of the assets between former…

A

Husband and wife under the matrimonial causes act 1973

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What are the two types of corporation?

A
  • corporation sole

- corporation aggregate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

The term corporation is generally used to refer to corporation…

A

Aggregate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is a cooperation sole?

A

A legal person representing an official position which will be occupied by a series of different people.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Give a couple of examples of corporation sole.

A
  • the queen in her build capacity is a corporation sole

- bishops of the Church of England

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is it important to note with corporation soles?

A

These are legal entities which are quite distinct from the people who hold the position and who merely act on behalf of the corporation.

A bishop for example has his own personal rights and property, however at the same time as a bishop, he fulfills duty and holds church property, when he dies, he ceases to exist as a natural legal person but the office of bishop remains. The corporation can not die and someone new just takes up the role.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Corporations sole can only be crested by?

A

Statute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What is corporation aggregate?

A

A legal person consisting of a number of people. Again, like corporation sole, the corporation aggregate is an existence separate to the members personally. If the people die, the corporation does not and new people just take the roles.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

All companies registered under the companies act are…

A

Corporations aggregate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Corporations aggregate may be formed by…

A
  • royal charter (chartered corporations)
  • private act of parliament (statutory corporations)
  • registration under the companies act (registered corporations)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

How is a corporation chartered?

A

Granting a royal charter to groups of people who petition the crown for this purpose.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Not all chartered corporations have the word…

A

Charred in their title, such as the bbc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

how do chartered corporations make changes to its charter?

A

Submitting a request to the privy council and gaining its approval.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Most companies today are formed by registration under the companies act and special act of parliaments. A royal charter however still provides a useful and dignified means of giving corporate status to charitable, scientific of educational bodies. Most English universities in England are chartered bodies apart from…

A

The newest group, polytechnics given university Status by statute.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Sometimes a particular statute may be employed to create either a corporation aggregate or a corporation sole. Brand new universities were created this way.

Unlike the bbc the independent broadcasting authority IBA was created by statute. The television act 1954.

Parliament also adopted this method to create most of the old nationalised industries and boards such as the British railways board, national coal board and….

A

British Gas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Many companies created by statute have now become…

A

Privatised and reformed as registered companies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Give an example of a corporation sole created by statute

A

Ministry of education.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

The most common form of corporation is the…

A

Registered corporation or registered company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Most registered companies are formed under the provisions of the various companies acts, although various statutes allow incorporation by registration. For example, building societies are created by registration under the building societies acts 1986. Registered companies are therefore formed indirectly by statute rather than…

A

Directly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

What is the effect - seperate legal personality with regards to a corporation having a seperate legal existence? Also provide the case to use and explain.

A

A company has a seperate legal existence to just a natural legal person. A case to use to explain this is, Salomon v Salomon 1897

In this case, Salomon set up his boot manufacturing business into a company. He held 20,000 shares and 6 of his family members one share each.

When the company got into difficulty, he held preference over the ordinary creditors. The law therefore treated him personally as an entirely separate person from the company,even though he completed dominated it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

How may somone use a company as a front to evade escaping their responsibilities and use a case.

A

In Gifford motor company v Horne (1933) Horne worked for gill ford and his contract of employment contained a clause which prevented him from approaching girl fords clients and persuading them to join any business he may start up himself.

Horne left gilford and set up a similar business as a registered company. He then tried to invite girl fords customers to join him. Horne argued that the contract in his clause said it was him personally who shouldn’t persuade the clients to join and that he had a a seperate legal existence now as a company however this argument was rejected and gilford was successful in obtaining a court injunction to prevent Horne fro, approaching girlfords customers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Corporations are subject to the general law similar to private individuals.

Corporations act through the directors and employees, however it will be the company its self liable for Torts and crimes etc. as a corporation is a non human entity there will be some restrictions in the way…

A

It can be punished.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

A corporation will be established for a particular purpose, it must not act ?????? ?????

A

Ultra vires - beyond the powers. Basically outside the purpose for which it was established.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

The permitted activities of statutory corporations will generally be defined in the statute by which it is…

A

Created.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Corporations have perputal succession, because a corporation has an existence which is independent of its members, it is not affected the death of any of the latter and may continue, theoretically, forever it can of course he wound up or liquidated it…

A

For example it if unable to pay its debts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Registered companies may be either public limited companies or…

A

Private companies.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Public companies must…

A
  • be limited
  • have a share capital
  • have a minimum capital on its formation of at least £50,000 with at least 25% subscribed in cash as consideration for the shares (I,e paid up)
  • have at least two members and two directors
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Shares in public companies are freely transferable and are usually listed on a recognised investment exchange such as the London stock exchange.

A company formed as a public company may re register as a private company following the approval of its shareholders by a special resolution. It’s name must then be altered by replacing Plc with ltd and its memorandum of association must be …

A

Amended appropriately.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

A company which does not state in its memorandum that it is a public company is a…

A

Private company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Private companies:

A
  • prohibited from inviting the general public to subscribe for their shares or other securities.
  • cannot seek a stock exchange listing
  • have at least two members and one director (although EU law now permits a private company to be formed with one member only or for its membership to fall to one. This however does not make it a corporation sole)
  • have no statutory minimum share capital requirement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

All public companies are l….

A

Limited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

Private companies may be…limited or

A

Limited or unlimited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Companies may be either generally limited by shares or by…

A

Guarantee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Where a company is limited by shares…

A

The liability of the shareholder is limited to the nominal value of the shares.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Shares may be fully or partially paid. If a person who holds 1000 £1 shares fully paid and then the company goes into liquidation, lose the whole money which the shares have cost them, however they have…

A

No further responsibility for the debts of the company.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

If shares are unpaid, for example 1000 £1 shares, 50p paid, and company gets into debt, liability is limited to the cost of the shares plus…

A

Amount unpaid, which in this example would be £500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Shares generally have a modest value so are usually issued,,.,

A

Fully paid,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

Where a company is limited by guarantee, each member undertakes that on the winding up of the company, they will contribute towards the debts of the company up to a certain, usually …

A

Modest amount, e.g £100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

A company limited by guarantee will only rarely issue shares to its members, but if it does so they are subject to both forms of

A

Limited liability.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

If an unlimited company (which must be a private company) is wound up there is not limit on the liability of the shareholders to contribute to the assets or the company to pay the company…

A

Debts.

80
Q

For obvious reasons, unlimited companies are less common then,

A

Limited companies

81
Q

When a company is formed, a number of documents have to be filled with…

A

The registrar of companies

82
Q

Which 2 documents are of particular importance when registering a company?

A

Memorandum of association and articles of association.

83
Q

What does the memorandum of association set out?

A

The name, nature and objects of the company.

84
Q

A memorandum of association must contain the name clause, what is this?

A

The name should not mislead members of the public who might wish to do business with it,or cause them to confuse the company with another.

The name must not not one prohibited by statute.
It must not be undesirable (too much like that of another company)
Must not be misleading
With minor exceptions, the last worlds must be public limited company in the case of public companies

85
Q

With regards to the memorandum of association, what is the registered office clause?

A

States whether the registered officer of the company is to be in England and Wales, Wales, Scotland or Northern Ireland.

86
Q

What is the objects clause?

A

Objects clause is an important clause which sets out the purpose for which the company was formed and the aims and type of business which it intends to pursue.

87
Q

As said, companies must not act ultra vires, beyond the powers and basically outside the scope of what they have said they do.

Modern practice however is to draw the objects clause in very wide terms and the companies act permits a firm, if it wishes to register as a …

A

General commercial company, allowing it to do almost anything.

You should note however that some types of company are subject to specific legislation which restricts their activities.

88
Q

European law specifically forbids insurance companies from carrying on any business other than insurance. Therefore an insurance co pang cannot for example engage in the business of banking unles…

A

It sets up a company for specifically that purpose.

89
Q

With regards to the memorandum of association, what is the limitation of liability clause?

A

Whether the company is limited by shares or by guarantee there must be a clause stating that the liability is limited.

90
Q

With regards to memorandum of association, what is the guarantee clause?

A

In the case of a company limited by guarantee, there must be a clause describing the guarantee.

91
Q

With regards to memorandum of association, what is the capital clause?

A

In the case of a limited company with a share capital, there must be a clause stating the amount of the share capital with which the company proposes the registered, and describing the division of the capital into shares of fixed amount.

92
Q

With regards to memorandum of association, what is the association clause and subscription?

A

At least two persons in the case of a public limited company and at least one in the case of a private company must subscribe their names to the memorandum. If the company had share capital, each subscriber must take at least one share.

93
Q

What are the articles of association?

A

Like a rule book which regulates the company’s internal affairs. It deals with matters such as the rights and duties of shareholders and directors and the holding of meetings.

94
Q

Every company has its annual general meeting (other meetings of shareholders are termed extraordinary meetings) at the agm, an account of the company’s affairs over the past year, the dividend if any to be paid and the directors are elected or …

A

Re elected

95
Q

Whenever the memorandum or articles of association of a company are altered, a copy of the instrument (the technical term for a document in these circumstances) embodying the alteration must be sent to the registrar of companies, together with…

A

A printed copy of the memorandum or articles as altered.

96
Q

A company can be dissolved (i.e liquidated or wound up) in one of three ways:

A
  • compulsory
  • voluntary liquidation
  • under the supervision of the court
97
Q

Winding up is the final stage of a company before it…

A

Ceases to exist.

98
Q

Compulsory winding up is usually the equivalent of the bankruptcy of the individual, although there may be other reasons for a company to be would up compulsorily. It is usually initiated either by the company itself, by creditors, or the department for business, innovation and skills. In any event, it is carried into effect by …

A

Order of the court.

99
Q

Voluntary winding up, on the other hand is the result of a resolution of the shareholders that does not normally involve…

A

The court at all.

100
Q

Creditors and others who feel that their interest might be adversely affected by the winding up may petition the court for the winding up to be carried out under the supervision of the court. As an alternative, they may ask for the court for a compulsory …

A

Winding up.

101
Q

Whichever method is used re winding up, a … Is a pointed.

A

Liquidator.

102
Q

The function of a liquidator is to realise all the company’s assets and ensure that all…

A

Liabilities are met.

103
Q

The function of the liquidator is to…

A

Realise all the company’s assets and ensure that all liabilities are met.

104
Q

Where a company is solvent there are a few problems, all creditors of the company, including the liquidator for their expenses and fees are paid and any surpluses distributed prioportkontally to the shareholders. If a company is unable to pay all its debts, the position is more complex because there are detailed rules as to the order in which,..

A

Debts are to be paid.

105
Q

Unless all debts of the company are paid in full, the ordinary shareholders will receive…

A

Nothing.

106
Q

As an alternative to immediate liquidation, a company which is in difficulty may initially be put into…

A

Receivership or administration

107
Q

If a company is in receivership or administration, the receiver or administrator who will be a licencesd insolvency practioncer) will manage the affairs of the company. In some cases, the receiver may be able to save the company as a going concern, by restructuring or…

A

Finding a buyer to buy it.

108
Q

A company that fails to submit returns or accounts will eventually be struck off the registrar by the resigtrar of companies. In fact, most companies will cease to exist do so simply as a result of being…

A

De registered rather than through any formal winding up process.

109
Q

What are unincorporated associations?

A

Groups of people who have not been incorporated by any of the methods described. Range in size from small local clubs and voluntary organisations with a few participants to unions with memberhsips of millions.

110
Q

Unincorporated organisations are not generally treated by the law as…

A

Seperate legal entities.

111
Q

Quasi cooperations share charetsersitcs with…

A

Some corporations

112
Q

The applications of various branches of the law to unincorporated associations such as clubs and societies is now…

A

Considered.

113
Q

A member who makes a contract on behalf of an unincorporated association, such as a social club is usually…

A

Personally liable on the contract.

114
Q

Members of unincorporated associations are generally liable for their own torts, even when they are committed…

A

Course of the associations activities.

115
Q

If one member of a club negligently injures another the former is personally liable and no other member will…

A

Bare any responsibility.

116
Q

If a person is injured as a result of the dangerous condition of a clubs premises, (such as a clubhouse which it occupies), the committee which runs the club may in some cases be …

A

Liable.

117
Q

The main example if vicarious liability is…

A

That of an employer, for wrongs committed by their employees in the course of their employment.

118
Q

Since an unincorporated association such as a club has no distinct legal existence it cannot own…

A

Property, and if no special steps are taken, any such property belongs to the members jointly and not to the association.

119
Q

It is commonly arranged for club property to be held by trustees for the benefit of the association, in order to to keep…

A

Seperate from the members own property.

120
Q

In the case before, the trustees are legal owners of club property and may they may engage in legal action in connection with it. If necessary however, the members may subject to the rules of the association, call for the dissolution of the trust, in which case the property will be…

A

Divided amongst them in accordance with the rules of the association.

121
Q

The rights of members in a club generally depends on…

A

The rules of the club.

122
Q

Every member of a club is deemed to be…

A

In a contractual relationship, governed by the rules with every other member.

123
Q

A member who is denied rights given to them by the rules of a club (such as the right to vote) or who is wrongfully expelled may be able to sue for…

A

Damages for breach of contract or for an injunction to prevent the association from acting in breach of the rules.

124
Q

If a member of a club sues for breach of contract, damages may be sought against a certain member of the club of all members. And people like the secretary etc. if damages are awarded, they will be payable by the representatives in question, who will in turn…

A

Be entitled to be indemnified (paid back) from the funds of the club.

125
Q

Two special types of unincorporated association are:

A
  • partnerships

- trade unions

126
Q

The partnership act defines a partnership as:

A

The relationship which subsists between persons carrying on a business in common with a view of profit.

127
Q

You will note that a partnership is a profit making business enterprise and that a non profit making organisation such as a charity or social club will fall outside …

A

The definition of a partnership.

128
Q

In a partnerships, unless a limited liability partnership, all members have unlimited personal liability for the debts of a partnership firm and are jointly and…

A

Severally liable for wrongs committed by their fellows partners.

129
Q

No special formalities are necessary for the formation of a…

A

Partnership

130
Q

A partnership can be created orally or simply…

A

Implied from the conduct of its members.

131
Q

It is usual for the rights and duties of the members and rules of the partnership generally to be defined in…

A

A formal deed of partnership or written partnership agreement.

132
Q

All partners are treated as ?????? Of the partnership firm.

A

Agents.

133
Q

A contract made by one partner in the course of the partnerships firms activities will …

A

Bind all others.

134
Q

Someone may sue one partner of any firm however…

A

All partners are ultimately liable, if necessary to the full extent of their personal wealth.

135
Q

The relationship of a partnership is a fiduciary one, one which is based on duties of…

A

Good faith to each other.

136
Q

The duty of good faith requires partners to deal openly and honestly with each other and to share any profits made in…

A

Connection with the business in accordance with the terms of the partnership agreement.

137
Q

There is a general rule of the law of agency which applies in this date because each partner is the …

A

Agent of all others in law.

138
Q

Because a partnership has no seperate legal existence apart from its members it does not have…

A

Perpetual succession.

139
Q

The death of a partner in a partnership automatically ….

A

Dissolves the partnership and the surviving partners must account to the personal representatives of the deceased partner for the amount of its interests in the firm.

140
Q

To prevent financial strain on the partnership it is common for funds to be provides from an insurance policy on the life…

A

Of the partner.

141
Q

Because of lack of continuity, the disadvantages of unlimited liability, the restriction by law in the number of partners and the difficult of raising capital for expansion, there is a tendency for partnerships to turn themselves into…

A

Limited companies.

142
Q

Partnerships have no corporate existence whereas limited companies…

A

Have a seperate legal status from that of the members.

143
Q

Partnerships may have the activities changed by mutual agreement whereas a limited company…

A

Can only change by special resolution, activities define in memorandum of association.

144
Q

Partners of a partnership other than limited partners have unlimited liability wheras the liability of a limited company is…

A

Liability of members limited to the value of shares or guraantee.

145
Q

In a partnership, all partners normally play an active role in management, wheras in a limited company, management is in the,.,

A

Hands of board of directors.

146
Q

In a partnership details of accounts and affairs may be kept private, wheras in a limited company, details of accounts must be made ,..

A

Public.

147
Q

Partnerships must be in business with…

A

A view to profit.

148
Q

Limited companies may or not trade for…

A

Profit.

149
Q

All partners must agree the appointment of a new partner, wheras inns limited company, share (and therefore membership) of a public limited companies may be freely…

A

Acquired.

150
Q

One of the disadvantages of a partnership is the personal…

A

Liability that partners have for the firms debts and liabilities.

151
Q

In a limited partnership, partners can limit their liability to the amount of capital held in the firm. At least one partner however must be a general partner which means…

A

Unlimited liability for debts of the firm.

152
Q

The limited liability partnerships act 2000 has allowed for the creation of limited liability partnerships (llps), whereby the personal liability of all partners is limited. Llps unlike partnerships have a legal personality seperate from that of other members. They must be registered and most pstmetship law does …

A

Not apply for them.

153
Q

Although trade unions are unincorporated associations, the law has always accorded them special…

A

Treatment and they are sometimes described as quasi corporations.

154
Q

What is a quasi corporation?

A

Corporations in a certain sense.

155
Q

Trade unions use to be treated as…

A

Unlawful conspiracies.

156
Q

Trade unions at present are legally recomsionsed as …

A

Lawful associations and have a certain number of legal privileges.

157
Q

The legal status of trade unions is governed by the….

A

Trade union and labour relations (consolidation) act 1992

158
Q

Under the trade union and labour relations (consolidation) act 1992. Trade unions shall not be treated as…

A

Corporate bodies.

159
Q

Under the trade union and labour relations (consolidation) act 1992, are trade unions able to make contracts?

A

Yes.

160
Q

Property of trade unions is vested…

A

In trustees, to be held on their behalf.

161
Q

Trade unions can be sued in…

A

Their own names, in contract, tort or in relation to property or any other matter.

162
Q

Trade union members may be prosecuted in their own names for crimes …

A

Committed by them or on their behalf.

163
Q

Any judgment I.e court order may be enforced against the union (e.g by seizing property held in trust for…

A

The union.

164
Q

Although in general unions may be sued, they have some immunity in connection with trade disputes and…

A

Industrial action.

165
Q

A union cannot be sued for…

A

Interfering with its members contracts of employment by organising industrial action.

166
Q

Immunity for a union for doing industrial action will be lost unless…

A

A ballot of the membership is taken.

167
Q

Contracts made by trade unions are generally enforceable, it ks presumed that any collective agreement (I.e agreement between a union and a employer about pay) is not legally binding however unless the agreement is…

A

Embodied in a written document which specifically states that it is to be legally enforceable.

168
Q

What is an employers’ association defined as?

A

An organisation of employers whose principal purpose includes the regulation of relations with workers or unions, or a federation of such organisations.

169
Q

An employers association may be either a corporate body or an….

A

Unincorporated association

170
Q

The crown in legal terms more or less equivalent to…

A

The government.

171
Q

The crown consists of:

A
  • the reigning monarch
  • government ministers
  • central government departments and their staffs of civil servants
  • the privy council
  • the armed forces
    But not the police
172
Q

Originally the crown was above the law, this was summed up in the maxim …

A

The king (or queen) can do no wrong.

173
Q

The crown still retains immunity and cannot be …

A

Sued or prosecuted.

174
Q

An example things people not happy with the crown was..

A

For example, crown could not be sued for torts committed by its servants. And had only limited liagility in contract.

175
Q

Actions against the crown could only be brought through an ancient petition known as…

A

Petition of right.

176
Q

The crown proceedings act 1947 was passed to remedy the situation with injustices related to the crown. The general effect was to abolish…

A

The legal immunity of the crown.

177
Q

Despite the crown proceedings act 1947. The monarch still retains…

A

Complete immunity and, by virtue of s.40 of the act, cannot be sued or prosecuted in either a personal or official capacity.

As a result of the act however the crown can now be sued in contract or in tort, subject only to limited exceptions.

178
Q

The petition of right and certain other old statutory procedures are abolished and legal action may be now be pursued by ordinary…

A

Processes.

179
Q

An action against the crown can be started either in the high court or….

A

County court.

180
Q

Proceedings against the crown are instituted against the appropriate government department or, if they are not associated with a particular government department or, if they are not associated with a particular government department against the…

A

Attorney general.

181
Q

The crown can still refuse to give evidence in a case if…

A

Such evidence would be harmful to the interest of the state.

182
Q

If the crown decides not to give evidence as they think it would go against the interest of the state, this is known as?

A

Public interest immunity.

183
Q

The crown itself cannot be …

A

Prosecuted for a crime.

184
Q

If criminal proceedings are taken against the crown, a nominated defendant is…

A

Put forward, usually an officer of the department concerned.

185
Q

Most criminal offences are now defined by statute law and that statues generally do not bind…

A

The crown. (Unless they contain words to that affect)

186
Q

Parts of the road traffic act 1988 apply to the crown but other parts, including the provision on…

A

Compulsory motor insurance do not.

187
Q

The law divides persons generally into two broad categories these are…

A

Natural person and Juristic persons (or corporations)

188
Q

Special rules apply to the capacity of minors, persons of unsound mind and….

A

Bankrupts.

189
Q

Corporations can either be corporations sole - a legal person representing an official position which will by a series of different people such as the monarch or corporations aggregate a legal person consisting of…

A

A number of people.

190
Q

Corporations aggregate may be created by royal charter; a private act of parliament or by…

A

Registration under the companies act.

191
Q

Registered companies can either be public limited companies or…

A

Private companies.

192
Q

Registration under the companies act requires certain documents to be filed including the …

A

Memorandum of association and the articles of association.

193
Q

A company can be dissolved compulsorily, voluntarily or under…

A

The supervision of the court.

194
Q

A partnership is a special type of unincorporated association which must be…

A

A profit making business enterprise.

195
Q

All members of a partnership have unlimited personal liability for the debts of the partnership firm and are jointly and severally liable for wrongs committed by their…

A

Fellow partners.

196
Q

How is a minor legally disadvantaged?

A

They cannot:

  • vote
  • sit in parliament
  • sit on a jury
  • make a will (unless in the services)
  • litigate on their own account
  • marry with the consent of the parents, under the age of 16, or without consent, under the age of 18
197
Q

What is the age of criminal responsibility in the case of a minor?

A
  1. Under the age of 10 it is seen that they cannot commit a crime.

M05 Insurance Law (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions