Reference no: EM131131495 , Length: word count:2500

Question 1 - Benny is a collector of classic cars. David is a car dealer who regularly purchases on behalf of Benny. On the instruction of Benny, David is visiting Howard's house to inspect a 1948 Honda, offered for sale at $20,000. Benny often attends the inspection to purchase these cars with David. However, Benny cannot attend on this occasion, and therefore instructs David that he is only prepared to pay a maximum of $15,000 for the car. David finds that the Honda is being sold with a rare and exclusive prestige accessory package. Because of this, rather than try to negotiate the price down to $15,000, David purchases the care for himself instead at $20,000. He subsequently notifies Benny that the car was unavailable having been sold. Discuss the legal issues in agency that arise from this scenario. Where relevant you should justify and support your answers with reference to statute and/or case law.

Question 2 - Over the past two years Frank has experienced financial difficulty and he is currently being pursued by creditors. Frank owns $809,000 to 10 different creditors and the total debt is comprised of secured and unsecured creditors. As a consequence of his unmanageable financial situation, Frank has decided to petition for bankruptcy. Between the date of his petition and the date his petition is accepted by the Federal Court, he sells his camper can valued at $20,000 to Linda his girlfriend for $5,000. Further, Frank gives away his boat to Leo his friend and pays off his own a personal loan owed to his long standing family member Jessica, valued at $20,000. In addition, in order to preserve property of sentimental value he leaves these low value assets with his Father. You are required to identify the legal issues in bankruptcy that arise from this scenario. Where relevant you should justify and support your answers with reference to statute and/or case law.

2500 words

12 references.