Q1. Alfonse is a keen art collector and is eager to buy a statue he has seen in a dealer’s gallery catalogue. The statue is of a young female dancer and would appear to be by Degas. On Monday he goes to see the dealer and asks to see the statue.
Upon examination of it he asks the dealer “if this is a genuine Degas, should it not be numbered”. The dealer says “if it is not, I will not only return the price you pay for it but I will give you £5,000 for your trouble”.
Alfonse offers the dealer £75,000 who says “I cannot take less than £85,000. Alfonse says “I can go to £80,000. I will give you two days to think about it and I will come to pick it up on Wednesday afternoon if I do not hear from you first”. Alphonse leaves the shop.
On Wednesday he returns to the shop and the dealers partner is there. He says he has come to pick up the statue and pays her the £80,000 taking the statue with hm when he leaves. The following day an associate of Alphonse tells him the statue is a very clever fake almost indistinguishable from the original. He takes the statue back to the shop and asks the dealer for £85,000 to be paid to him for its return.
Advise Alphonse of any legal rights he may have.
Q2. Duress and undue influence can make a usually legally enforceable contract void. Describe what is meant by duress and undue influence and explain how they are distinguished from the normal commercial pressure applied in contractual negotiations.
Q3. Abigail, Basil & Cynthia are graduates from Boomtown University Business School and its College of Arts. They have been close friends since they enrolled three years ago and Basil & Cynthia are now engaged.
They have decided to start a company together to sell the clothing designs they have made during their undergraduate studies. Cynthia obtained a first class degree and Streetwise Fashions have bought some of her work.
The three friends decide they will sell clothing online and Abigail, who has inherited £200,000 from her grandmother’s estate puts in £150,000 to start the business. Basil studied accounting and Cynthia studied fashion and marketing. They intend to supplement their business by selling commercially obtainable designer clothes alongside their own designs.
They have now come to see you for business advice and want to know what is the best form of business structure to use for this venture.
Advise them of the best business model and include in your advice why they should chose it. Describe the possible advantages and the legal dangers that can be encountered in business.
