BUSINESS LAW (LAW 109)

SEMINAR QUESTIONS

BAF I-2020/2021

QUESTION ONE

What is the contract of insurance? What is its nature? Explain the fundamental
principles of Insurance

QUESTION TWO

Davis and his two sons formed a company known as D & Sons Co. Ltd which deals
with supply of office stationeries and other equipments. All the assets of the company
were insured by the name of Davis Cley. The assets caught fire as a result of
thunderstorm that hit the nearby transformer. The company has approached ZIC
Insurance Company which insured those assets to claim for indemnity.

Advice the Company’s legal officer on the possibility of recovering the loss suffered
from the Insurance Company

QUESTION THREE

What is a contract of agency? By using relevant authorities explain how the relationship
of agency is created

QUESTION FOUR

“In agency, a person may act on behalf of another though he no prior authority. In such
a case the person for whom the act is done may subsequently accept the act or reject it.
If he accepts the act done without his consent he is said to have ratified that act and it
places the parties in exactly position in which they would have been had the authority
been given at the time the contract was created” (Anonymous)

Discuss the above statement in relation to agency ratification

QUESTION FIVE

By making reference to statutory provisions and case laws, discuss the duties and
liabilities of promoter of the company.

QUESTION SIX

Explain the difference between Memorandum of Association and Articles of

Association of a company.

QUESTION SEVEN
Supported with decided cases and legal provisions, discuss the concept of separate
legal personality.

QUESTION EIGHT

What are the procedures for alteration of a company’s share capital?

QUESTION NINE

Cheusi, after graduating from Mzumbe University MBA Program decided to engage in
agricultural activities. To start with, he formed a company named Mzungu Farming Co
Ltd to which he was the majority shareholder with 80% shareholding while his beloved
wife, Mzungu owned the remaining 20%. The company has been operating successfully
for over six years. On one fateful day Mrs Cheusi, while using her husband cell phone
discovered that her husband was engaged in extra marital relationship with a lady
named Chakubanga. She successfully petitioned for divorce at Changarawe Primary
Court and currently she needs your legal advice on the following:

(i) Can she petition to Changarawe Primary Court to dissolve the company as
she is no longer interested to be part of the company anymore?
(ii) The procedure to follow if the company is to be wound up voluntarily
QUESTION TEN

Outline and explain material differences between a public corporation and a private
company