Commercial Law Assignment 1
Section A: FOUR (4) Short Answer Questions (40 marks).
Instructions: Questions 1 to 4 are short answer questions.
Answer all FOUR (4) questions. Each question carries TEN (10) marks.
Please cite relevant case law and/or statute.
Question 1
JC loves movies. He has a huge DVD collection in his home and displays them in glass cabinets in his living room. One day, the police show up at his home and arrest him for “selling DVDs without a licence”.
Advise JC of the validity of the charges.
Question 2
When British businessman Manfred Lewis travels to Singapore for business, he always stays at the same hotel, The Class Holiday Hotel. There is an exemption clause notice in the rooms suggesting that the management is not liable for any loss of valuables.
Having stayed in the hotel in the past, suggest if the notice would be binding on Manfred should he stay in the hotel again.
Question 3
Toh & Sons, an SME in Singapore, wanted to revise the employment contract terms for all their employees. They sent out a memo to all staff saying that their employment contracts have been amended, and that the company has taken it that all staff have agreed and are bound by the new terms.
Briefly suggest if the company can adopt such an approach with regards to unilaterally amending its employees’ contract terms.
Question 4
When a company is formed, it is said to be distinct and separate from the member who set up this company.
Briefly explain the “veil of incorporation” of a company.
Section B: TWO (2) Essay Questions (40 marks).
Instructions: Questions 5 and 6 are essay questions.
Answer BOTH questions.
Each question carries TWENTY (20) marks.
Please cite relevant case law and/or statute.
Question 5
Chuck advertised his BMW car for sale at $200,000 cash. Charles came to accept the offer, but told Chuck he could only pay $100,000 cash and promised to pay the remaining $100,000 in two installments. Chuck said nothing.
Shortly after, Don came to view the car, and told Chuck that if he (Don) hears no more from Chuck by the next day, he will consider the car as his for $140,000. Again, Chuck remained silent.
Later that the evening, Eric came to view the car and told Chuck that $200,000 was “rather expensive”. He asked if Chuck would accept $120,000 cash. Chuck rejected this.
The next day, Fred came to view the car and after some discussion, agreed to Chuck’s price of $200,000. Chuck sold the BMW car to Fred for $200,000.
Charles, Don and Eric each believe they have a legally binding contract with Chuck, and as such are now contemplating legal action against him for “breach of contract”.
Required: Advise the parties of their legal positions with regards to contract law.
Question 6
Richard entered into negotiations with Jasmine, a property agent, for the purchase of a five-room re-sale flat in the Redhill area.
Richard told Jasmine that the flat he wished to purchase must be free of any adverse incident in its history. In other words, nothing terrible must have happened inside the flat. Richard explained that his wife was very superstitious over such matters.
Two weeks later, Jasmine chanced upon a seller of a five-room flat in the Redhill area who wished to sell his flat due to a murder that occurred in that flat when it was rented out to foreign workers. Believing that Richard would never know the truth behind the flat’s history, Jasmine took it upon herself to make false representations to Richard in an effort to get the flat sold to him and thereby earn her commission.
Jasmine then told Richard that she had found a flat for him. After viewing the flat, Richard again stipulated his condition that nothing out of the ordinary should have happened in the flat. Jasmine assured him that no such incident had occurred, stating that the current owners were selling the flat because they were emigrating to Australia.
After buying the flat and moving in, Richard’s neighbour told him that the former occupants of flat were two China nationals who were renting it while working in Singapore and that one day, during a drinking session, one killed the other in the flat. The previous owner, said the neighbour, felt that the flat carried a bad omen now and decided to sell it off. Adding further, the neighbour said he was surprised that Richard did not know this before buying the flat.
Required: Enraged, Richard now intends to rescind the contract. Discuss the grounds upon which the contract for the sale of flat could be rescinded.