MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024 (347800) - DUE 15 April 2024
78 views 2 purchases
Course
MRL2601 (MRL2601)
Institution
University Of South Africa (Unisa)
Book
New Entrepreneurial Law
MRL2601 Assignment 2 (COMPLETE ANSWERS) Semester 1 2024 (347800) - DUE 15 April 2024 ; 100% TRUSTED workings, explanations and solutions. .........................................Question 1 1.1 Lesedi and Simphiwe registered Furnmax (Pty) Ltd, a company that sells office equipment. The Memorandum o...
1.1 Lesedi and Simphiwe registered Furnmax (Pty) Ltd, a company that sells
office equipment. The Memorandum of Incorporation of Furnmax (Pty)
Ltd indicates that the board of directors, consisting of Lesedi, Simphiwe,
Carol and Precious, can appoint a managing director who would be
authorised to contract on the company’s behalf. However, the board has
never formally appointed a managing director. Nevertheless, Lesedi, with
the full knowledge of the other directors, has contracted with Office
Supplies Ltd for the supply of office equipment to Furnmax (Pty) Ltd on
two occasions. On the third occasion that Lesedi contracted with Office
Supplies Ltd, Furnmax (Pty) Ltd denied liability for the payment for the
equipment based on the fact that Lesedi was never appointed as the
managing director. Upon being sued by Office Supplies Ltd, Furnmax
(Pty) Ltd opposed the claim for payment in terms of the agreement based
on the fact that Lesedi was not authorised to contract on the company’s
behalf. Explain with reference to relevant case law what Office Supplies
Ltd would have to prove in order to rely upon the doctrine of estoppel. (5)
According to Freeman & Lockyer V Buckhurst Park Properties (Mangal) Ltd it
follows that where the agent upon whose "apparent" authority the contractor
relies has no "actual “authority from the corporation to enter into a particular
kind of contract with the contractor on behalf of the corporation, the contractor
cannot rely upon the agent's own representation as to his actual authority. The
Office supplies Ltd would have to prove that the third party acted on his or her
own prejudice in this scenario Lesedi and according to NBS Bank Ltd v Cape
Produce Co (Pty) Ltd 2002 the court decided that Turning to the first two
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 bsenedict. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.15. You're not tied to anything after your purchase.
