Business World

Hong Kong Baptist University

BUS 2170 – Principles of Law

Questions & Cases for Presentation (2013-14) Semester 1

Question 1

Part a

The constitution of a state or territory can be defined as one which “establishes (‘constitutes’) the basic institutions of government, distributes governmental authority amongst them, defines the relationship between them …” (Wesley-Smith, 1998, p. 20).

Required

Given the definition, explain in what ways the Basic Law is the constitution of the Hong Kong Special Administration Region (HKSAR).

Part b

The doctrine of precedent can maintain the consistency and the flexibility of the case law system at the same time. Discuss.

Question 2

a) To what extent is it correct to say that an acceptance is effective only when it has been communicated to the offeror by the offeree?

b) Seller Ltd wrote to Buyer Ltd on 1 February 2013 offering to sell various items of plant and machinery for $20,000. The letter included the following statement.

’Notice in writing of your acceptance of this offer must be received by the sales director by 14 February 2013.’

Buyer Ltd decided to accept the offer and posted its acceptance on 8 February 2013. In addition, the managing director of Buyer Ltd telephoned Seller Ltd and asked to speak to the sales director. Unfortunately, he was out of the office, so a message was left with his secretary confirming Buyer Ltd’s acceptance of the offer.

Buyer Ltd has since discovered that Seller Ltd’s sales director never received the letter of acceptance, and that the secretary forgot to inform him of the telephone call. Consequently, the plant and machinery has been sold to Exe Ltd.

Required:

Explain whether Seller Ltd may be held liable for breach of contract.

Question 3

a) ‘For an agreement to be enforceable, each party must provide something of value in the eyes of the law.’

To what extent, this is an accurate statement of the modern law of contract?

b)...