University of Jos Commercial Law Past Questions

These past questions are simply compiled here fore academic purposes. we do not own copyrights to the respective questions

 

 

 

2nd Semester (2007/2008) - Agency & Hire Purchase

1. Mr Ndu Eze is the owner of a two-storey building containing six 3 bedroom flats, which is currently in a dilapidated state. He is desirous of putting the building in habitable condition but he is short of cash, arising from recent global financial crisis that saw him lose heavily in certain international deals. Meanwhile, Trust Property Ltd. is a company engaged in the property business and is prepared to fund the repair of the property, on the condition that it should be retained as the owner's agent for purposes of letting out the property to tenants. The company is however worried that the owner may terminate the agency before it would have recovered its investment. (a)Advise the parties on the nature of authority that should be given to the agent under the circumstances (b) Discuss in extenso the agent's duty to act in good faith.
2. Agro Millers Ltd. was awarded a contract for the supply of one million metric tonnes of fertilizer by the Plateau State Government. The fertilizer was to be delivered in Jos on or before April 30, 2008 at the warehouse of the state Ministry of Agriculture. The company engaged the services of Trans Nig. Ltd., a haulage company to haul the goods from TinCan Port to Jos. Upon arrival in Jos sometime in April of that year, the officials of the Ministry refused to accept delivery and all efforts to contact the management of Agro Millers Ltd. of this development proved abortive. In view of the fact that the rains were threatening at the time, Trans Nig. Ltd. offloaded the goods in a warehouse belonging to Mr. Femi Salako for a monthly rent of #100,000. Communication with Agro Millers Ltd. was impossible up till June 2008 when Mr Salako demanded the use of his warehouse, at which time there was no other warehouse available in Jos. Trans Nig. Ltd. proceeded to auction the fertilizer to farmers in Jos. Later on in July of the same year, the Managing Director of Agro Millers called Trans Nig. Ltd. to enquire as to the state of their goods. Discuss the legal issues involved in this case and advise the parties accordingly.
3. (a) Adumbrate the facts and law restated in ACB Ltd. v. Apugo (2001) 5NWLR (Pt. 707) 483   (b) Distinguish between an agent and a bailee.
4. Chief Sunday Vajime is an international businessman who was awarded a contract for the upgrade of facilities at the Yakubu Gowon Airport in order to transform it to an international airport. He asked his trusted friend, John Bala to travel to the United Kingdom and negotiate an agreement with Air Defence Systems Ltd. for the supply of model SS 007 radar facilities for the airport. While in the U.K, John was told that the model could only be sold to a buyer outside the U.K with the permission of the British government first obtained by the prospective buyer. John therefore opted for model PP 419 and he accordingly signed the agreement personally and without qualification. Chief Vajime is not happy and now seeks legal advice on what to do next. (a) identify and discuss the legal issues arising and advise accordingly (b) Distinguish between commission and mercantile agents.
5. MacCherry Nig. Ltd. is a dealer in cars and facilitated a hire purchase agreement in respect of a Honda Accord LX between Mr. Samson Mairiga as hirer and First Finance Co. Ltd as the financier of the transaction. Sometime in January 2009 after he came out the banking hall of GT Bank, he noticed that a crowd had gathered around the car and a writ of fifa had been pasted on the car and a young man, who introduced himself as Moses - a bailiff of the High Court of Plateau State, was leaning on the car and told that the car had been attached pursuant to the judgment of the Hon. Justice Danladi delivered in a suit against First Finance. He immediately accosted the Manager of First Finance Co. Ltd who told him that if he had bothered to read the agreement before signing it, he would have observed that he had expressly agreed that the company did not give him any assurance that the car was without any issues. and that moreover, he was in arrears of two months installment, so he wondered why Mr. Mairiga was raising so much dust. Needless to say that Mr. Mairiga is less than impressed with the whole episode. (a) Identify and discuss all the legal issues arising in this case and advise the parties accordingly. (b) Discuss the law on minimum payment clauses in detail.
6. Christiano Donaldo is a 300 level student who has been trying to impress Cynthia, the object of his desire. he therefore entered into a hire purchase agreement with Shylock Finance Ltd. in respect of a BMW Car with a hire purchase price of ₦1,000,000.00 sometime in September, 2008. He had paid the deposit of ₦200,000.00 and was obliged to pay ₦50,000.00 monthly from October 2008 until he paid the hire purchase price. He was to have paid the installment for the month of November on the 28th of that month but before he left the house that day, his friend called him that there was a crisis in town and he should not go anywhere. A week later, the situation came under control but by then Christiano left town and did not go to make the payment. In fact he has been in default for the last three months. Shylock Finance Co. Ltd. has approached you for advice on its options. Would your advice be different if Donaldo had either:
• Returned the car with body damage, or
• only defaulted paying the installment for the month of October, 2009.
• Write briefly on the assignment of option to purchase.
7. Bimbo Owoyemi entered into a hire purchase agreement for a MX Generation Next gas cooker for a hire purchase price of ₦250,000.00. She paid a deposit of ₦50,000.00 in September, 2008 and was to make monthly payments of ₦20,000.00 until she completes payment. Sometime in February 2009, her friend came to her house, saw the cooker and asked Bimbo to sell it to her. Bimbo obliged and sold it to her for an undisclosed amount. Since March 2009, she has abandoned the hire purchase agreement and the finance company had come into her house to repossess the cooker but could not find it anywhere. The company wants to claim from Bimbo for breach of contract and needs your advice as to what to do and which forum to make its case. Would your advice be different if Bimbo had sold the cooker in her mother's shop opposite Massalacin Juma'a street?  (a) Discuss the principles regarding the appropriation of payments under the common law and distinguish it from that under the Hire Purchase Act.
   

 

 

2nd Semester (2008/2009) - Agency & Hire Purchase

1. Sometime in January 2009, Consolidated Sugar Refinery Ltd. sought to procure a new sugar cane crusher from Wellington Steel Crafts Ltd. The machine was valued at #12,000,000.00. Consolidated Sugar Refinery Ltd. had only half of that sum, so it approached Veritas Finance Co. Ltd. for a loan to finance the difference. Veritas Finance Co. Ltd. approved a loan of #4,000,000 (with an interest of 8% per annum) to finance the deal leaving a balance of the purchase price of #2,000,000.00. There is a six month moratorium on the loan, which is however repayable before the end of March 2010. It was agreed between Wellington Steel Crafts Ltd. and Consolidated Sugar Refinery Ltd. that the latter would pay the sum of #2,000,000.00 in 5 installments of #400,000.00 beginning from January 2010. Consolidated Sugar Refinery Ltd. had defaulted in three monthly repayments to Veritas Finance Co. Ltd. as a result of which the latter entered the factory and seized the sugar cane crusher. It claims that under their hire purchase agreement, Consolidated Sugar Refinery Ltd. is in default of three installments and it has, therefore, excercised its rights under S9 (5) under the Hire Purchase Act. Meanwhile Martin Ugo is a sales representative for Consolidated Sugar Refinery Ltd. for the Northern zone. His primary duty, amongst others is to sell the products of the company to its customers i.e distributors (who are ten in number) within the zone. As a result of the scarcity of sugar in the area as a result of poor farm yield, there was stiff competition amongst the company's customers. Some of the company's customers persuaded him to supply them with sugar as soon as he received stock from the company with a promise to give him "something for his trouble". The supply for April 2010 was 10,000 metric tonnes and the company directed its representative to distribute it equally amongst its customers. As soon as the shipment arrived, Martin called Mallam Idris Sansani and Shehu Bello to come over to receive 2,000 metric tonnes each. After taking delivery, each of them slipped envelopes containing #10,000.00 into Martin's pocket and drove away. Mr. Salihu who is also a distributor did not get any supply and complained bitterly to the Regional Sales Manager, who was directed by the Board of Directors of the company to investigate what transpired. He has now requested for the invoices and waybill regarding the consignment but Martins has not yielded any of these to him.
• Identify the legal issues arising from the facts above in relation to the legal relationships existing between the parties and their duties
• Discuss the legal issues identified in (a) above and advise the parties as to the remedies that are available to them.
• Write briefly on the similarities (if any) and differences between an agent and a trustee
2. Tanko Kasim was engaged by Alhaji Kudi Yabata to look for 10 plots of land at Rayfield, Jos for him to buy. He told Tanko that he was willing to pay the sum of #750,000.00 per plot, nothing more. Tanko found 10 plots of land belonging to Da Gyang Rwang at Gut, Rayfield but Da Rwang insisted on #850,000.00 per plot. Indeed other sellers were insisting on #900,000.00 per plot. Tanko quickly entered into an agreement with Da Rwang in his name paying the sum of ₦1,000,000.00 as part payment so that Da Rwang would not sell the same land to anyone else. While all this was going on, Alhaji Kudi Yabata was away at Abuja. Tanko called Alhaji Kudi Yabata to inform him of what he had done so far. At the time, Alhaji was in a meeting with the minister of Transport for a contract worth ₦400million and he hurriedly told Tanko to do what was necessary to get the land as he had to focus on the meeting. Meanwhile, in the course of depositing a trip of sand on the land in order to show possession, the tipper destroyed a part of the fence wall on the adjoining property owned by Chief Onyisogbu. Alhaji Kudi Yabata has now returned to Jos and he has refused to pay the balance of ₦6,500,000.00 saying that the land is too expensive. Chief Onyisogbu has also threatened to sue Tanko for damages for his broken fence wall.
• Identify the issues arising and accordingly advice each of the individuals on their rights and obligations as they relate to the events described above.
• Would your answer be different with respect to the relationship between Alhaji Kudi Yabata and Tanko if the former was on admission in Ward 13 at JUTH for delirium induced by an overdose of marijuana at the time he received the call from Tanko? Give reasons for your answer.
  
3.      1. State the facts of the case in S.B.N Plc v. Opanubi (2004) 15 NWLR (Pt. 896) 437 and the law restated therein in relation to the law of agency.
• Write extensively on termination of agency by way of revocation by the principal.
  
4. Mr Biodun Olofofo inherited a block of flats at Filin Sukuwa on Bauchi Road, Jos from his deceased father. He called his brother-in-law, Okon Bassey, an estate agent, to rent it out to tenants. Okon let the premises out to students only for Biodun to object on the ground that he prefers married couples to occupy his property as opposed to students who will misuse the property. Okon has collected the rents for the year from the tenants though he has not handed it over to Biodun. On the day before he was to hand over the rents to Biodun, he told Biodun over the telephone that he will deduct his 10% agency fee to which Biodun reacted that he thought that Okon was doing him a favour by managing the property for him on the basis of their family ties - ostensibly on the basis that the bride price on his sister can never be fully paid.
• What are the legal issues involved in this case?
• Address these issues and advice Okon on the propriety or otherwise of his proposed line of action
• What remedies are available to Okon?
• Write notes on a Factor
  
5.  Honourable Dunga is a member of the House of Representatives and upon being sworn-in as such in May 2007, he decided to acquire two brand new vehicles, one for himself and the other for his wife. Linkage Finance Co. Ltd. agreed to finance the transaction for the hire purchase of a Toyota Camry 2007 model and a Honda CRV 2006 model. The hire purchase price of the Toyota Camry is ₦5,500,000.00 while that of the Honda CRV is ₦4,500,000.00. In June 2010, he paid a deposit of ₦500,000.00 each on the two vehicles and the agreement required him to make installmental payments on ₦250,000.00 monthly for each of the cars from then onward. The hirer duly made this payment from July, 2007 in a lump sum of ₦500,000.00 monthly. By December 2008, Hon. Dunga's election into the House of Representatives was nullified by the Election Tribunal in the petition presented by Mr Lagerback. As a result of this, the hirer was thrown into financial crisis and began to default in his monthly payments from January 2009. In May 2009, Linkage Finance Co. Ltd. wrote a letter to Hon. Dunga, terminating the agreement. Meanwhile, his wife who is currently a 300 level law student at the Adamawa State University had earlier advised him in April 2009 to write the company requesting that the payments he has made thus far be considered as payments with respect to the Honda CRV. Linkage Finance Co. Ltd. sent its agents to re-possess both vehicles from Hon. Dunga on May 30, 2009 at his house while he was having a meeting with his political associates on strategy for winning the 2011 election. Linkage Finance Co. Ltd. later on sold the vehicles to Patrice Evra and Diego Milito. Hon. Dunga is highly embarrased and has come to you for advice.
• Identify the legal issues involved in this case.
• Discuss these issues and advice Hon. Dunga as to his rights and or liabilities under the circumstances
6. Lancelot Igho entered into a hire purchase agreement with Jamrock Finance Ltd. for the hire of Haier Thermocool Deep Freezer with a hire purchhase price of ₦102,000.00. Lancelot required the freezer for his cool spot on campus and he desired a freezer that could keep drinks cold for at least 3 days going, even without power supply. He assumed that the freezer would be able to do this without difficulty. The agreement provided that "the owner does not give any guarantee to the hirer that the goods, subject of this agreement, are of merchantable quality or that they are fit for the purpose for which the hirer requires the goods". In addition to this, the agreement stipulated that the dealer shall be deemed to be the agent of the hirer, while the owner was given permission of the hirer to enter into his premises to re-possess the deep freezer in the event of a default in the payment of any installment. Above all, the hirer was required to pay a sum that would bring his total payments to 85% of the hire purchase price in the event that the hirer returns the goods before the end of the period of hire. Lancelot is facing serious financial challenges and he is finding it difficult to keep up with the installmental payments. He has, therefore come to you for advice as to what he should do in the circumstances. Please oblige him, distinctly setting out and addressing the issues that arise in this case.
7. Write concise notes on any three of the following:
• The Implied Condition of Title
• Minimum Payment Clause
• Hirer's Right to Terminate
• Relationship between the Dealer and Finance Company.