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1. Background

Waddell is based in Manchester and faxed an offer to Xavier in Houston making an offer to sell goods to him. Xavier immediately faxed back and accept the offer. Even though the fax was received in Waddell’s office during normal business hours, she did not read it.

Waddell, having no knowledge that Xavier had sent a fax then received a letter from Yaull offering to buy Waddell’s goods. The letter stated that if he did not hear anything, Yaull would assume the goods were his.

Waddell, not agreeing with the tone of Yaull’s letter, instead offered to sell the goods to Zang. Zang posted a letter of acceptance which Waddell did not receive. Waddell had never indicated to Zang that post was an accepted made of communications as past negotiations have always taken place face-to-face.

Task-1

Is there a contract between Waddell and Xavier, and for what reason?

A. No,because acceptance has to be effectively communicated and Waddell did not read the acceptance

B. No,because acceptance by fax is not recognized in the law of contract

C. Yes,because even though the fax has not been read, effective communication of acceptance has taken place

D. Yes,because Waddell has made an offer to Xavier and is obliged to sell to him

參考答案C

2. Background

John, Fran and Stan have purchased an off –the –shelf company, XYZ Ltd, from their solicitor. Their solicitor has advised them to change the name to make it more meaningful in relation to their film production business. The solicitor has also advised them to consider which of the company’s articles of association require changing?

Task-1

Which of the following CANNOT be changed, in relation to the company‘s articles of association?

A. The procedure for declaring dividends

B. The requirement for the company’s shares to be fully paid-up at the time they are issued

C. The name of the company

D. The procedure for changing the company’s articles

參考答案D

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