Exam (elaborations)
LML4806 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 (818236) - DUE 25 August 2024
- Course
- Institution
100% TRUSTED WORKINGS, EXPLANATIONS & SOLUTIONS
[Show more]
Seller
Follow
Tutorials
Content preview
LML4806 Assignment 1(COMPLETE ANSWERS)
Semester 2 2024 (818236) - DUE
25 August 2024
CONTACT: biwottcornelius@gmail.com
, LML4806 Assignment 1 (COMPLETE ANSWERS)
Semester 2 2024 (818236) - DUE 25 August 2024
Question: 1 Jane, John and Jabulani are the directors of Touring Africa by
Bicycle (Pty) Ltd (“the company”), a company that is based in Johannesburg.
The memorandum of incorporation of the company provides that only the
board of directors have the authority to enter into contracts on behalf of the
company. James, the branch manager of the company in Durban, attends an
outdoor show in Durban to scout for useful new products for the company’s
cycling excursions. At the outdoor show one of the exhibitors, Cycle for Life
(Pty) Ltd, has a limited special offer on electric bicycles for the amount of
R120 000.00 per bicycle. James contacts the directors of the company by way
of a Zoom call, and while speaking to the directors of the company on the
Zoom call, James keeps his mobile phone on speakerphone. The directors
instruct James to purchase six of the electric bicycles on behalf of the
company. Nancy, the representative of Cycle for Life (Pty) Ltd, hears the
instruction, and because James has previously entered into agreements with
Cycle for Life (Pty) Ltd without any problems, she enters into an agreement
with James for the sale of six electric 4 bicycles to Touring Africa by Bicycle
(Pty) Ltd. The electric bicycles are delivered to the company’s Durban office.
When Cycle for Life (Pty) Ltd sends an invoice for payment of the total amount
of R720 000.00 for the six electric bicycles, Touring Africa by Bicycle (Pty) Ltd
refuses to pay, arguing that it is not bound by the contract as James did not
have the authority to act on its behalf. Nancy approaches you for legal advice.
With reference to the relevant authority/principle and the facts, advise Nancy
on what Cycle for Life (Pty) Ltd must allege and prove in order to prevent
Touring Africa by Bicycle (Pty) Ltd from arguing that it is not bound by the
contract concluded by Nancy and James. (5)
To advise Nancy from Cycle for Life (Pty) Ltd regarding the enforceability of the contract with
Touring Africa by Bicycle (Pty) Ltd, we need to consider the principles of agency and the
authority of James in relation to the company's directors.
Relevant Principles:
1. Actual Authority: James had actual authority if the directors specifically instructed him
to purchase the bicycles during the Zoom call. Since they were on a video call, and
Nancy was present, this instruction could constitute actual authority.
2. Apparent Authority (or Ostensible Authority): Even if James did not have actual
authority, Cycle for Life could argue that he had apparent authority based on previous
dealings. If Nancy was aware of James's past dealings and the directors did not
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutorials. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.50. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now