Civil liabilities, Business Law and Ethics

Assignment Help:

Civil Liabilities:

LIABILITY FOR FAILURE TO STATE ANY MATTER OR REPORT

At Common Law, a contract of allotment is not a contract Uberrimae Fidei. The company is therefore not under a legal obligation to disclose or state in its prospectus any relevant matter or report. The allottee of shares has, therefore, no remedy against the company if he bought the shares which he would not have bought had the company made the relevant disclosure. This rule has not been changed by the disclosure requirements of the Companies Act.

However, the allottee may have a remedy for an omission if the failure to state any relevant fact had the indirect effect of rendering a stated fact untrue, with S.48 (a) of the Act. For example, in COLES v WHITE CITY (MANCHESTER) GREYHOUND ASSOCIATION LTD the prospectus stated that the land to be acquired by the company was "eminently suitable" for greyhound racing. No mention was made of the fact that approval of the local council was required in order to build public stands and kennels. This was held by the Court of Appeal to be a ground for rescission by the plaintiff.


Related Discussions:- Civil liabilities

What is recessionary bias, What is Recessionary Bias To illustrate the ...

What is Recessionary Bias To illustrate the possibility of recessionary bias we assume that both countries have two policy objectives but only one policy instrument. The policy

On which convention international humanitarian law is based, On which conve...

On which convention International humanitarian law is based International humanitarian law  is  not  wholly  based  on  the  Geneva  Convention and  Hague convention. These law

Restatement of the fundamental rule, Restatement of the fundamental rule: ...

Restatement of the fundamental rule: In Bray v Ford Lord Herschell stated that the aforesaid rule is not "founded upon principles of morality" but is based on the consideratio

Agency, John owns a 1951 Mercedes Sl that he wishes to sell. He instructs R...

John owns a 1951 Mercedes Sl that he wishes to sell. He instructs Ross to sell the car, and in return, will be paid £5,000 commission. Ross manages to find a buyer, Paul, Paul and

Analyse austins command theory of law, Problem 1: Give a critical descr...

Problem 1: Give a critical description of Hart's concept of law and discuss the failings in such theory. Problem 2: Analyse Austin's command theory of law and discuss h

Discuss legal relationship between a bank and its customer, Question 1: ...

Question 1: Discuss the legal relationship between a bank and its customer with reference to the responsibilities of the parties towards each other. Question 2: This qu

Civil law, Civil Law: Further civil law is affected with violations of...

Civil Law: Further civil law is affected with violations of private rights in their corporate or individual capacity egg breach of contract, negligence, defamation, nuisance,

Compensation for loss of office - company management, Compensation for Loss...

Compensation for Loss of Office: (a) Section 192 makes it unlawful for a company to make a director any payment by way of compensation for loss of office, or  may as considera

Contract for work and materials, Contract for Work and Materials In Ro...

Contract for Work and Materials In Robinson v Graves a dispute arose over an agreement below such an artist had promised to make a portrait about 250 guineas. So query had to

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd