AK/ADMS 2600 – ELEMENTS OF LAW: ONE
1. Antony and Cleopatra had a partnership in a very successful banking and
company that arranged for the importing of Egyptian artefacts. The business
was a private one,
but after several years of making massive profits, the business went into decline. The business
was carried on under the name of Anton and Cleopatra Banking, but as profit margins
declined, the partnership was dissolved. The business
continued to be carried on in the firm
name and no notice of dissolution was given, nor was a certificate registered. It was, however,
known to the customers of the partnership that the partnership had been dissolved.
After the dissolution, Cleopatra, who was also treasurer of the Nile River
money belonging to the municipality. From this and other money, Cleopatra paid the
municipality's key accounts to its various creditors and made a substantial payment on a
mortgage on a new piece of land acquired by the ministry for its new treasury building.
Cleopatra deposited the remaining money into the Antony and Cleopatra Banking account,
which was at the same bank where the municipality had its account, and then used the
remaining money on partnership business.
A few days later, Cleopatra was bitten by an asp and died from her injuries. The bank account
was now overdrawn, and the municipality sought to bring an action against Antony for the
money it was owed.
Describe the nature of the municipality's claim and the grounds on which the claim
would be based. Discuss any defences to the claim that could be raised by Antony.
2. The Flinstone Corporation carried on business as a representative for investor groups
that wanted to buy successful construction companies. Fred Flinstone, the president of the
corporation, met with a group of land developers who had recently established the Slate
Construction Co. and wanted to buy the equipment assets of another construction business,
At the direction of the investor group, Fred met with Barney Rubble, the president of Rubble Inc.
and negotiated a purchase price of $10 million for all of Rubble Inc.'s tractors, caterpillars,
conveyor belts and dump trucks. Fred then prepared a "letter of intent", which set out the
purchase price of the assets and the terms of payment. The letter called for the payment of a $1
million deposit within 24 hours of the signed acceptance of the offer by Rubble Inc. The "letter of
intent" was signed: "Flinstone Corporation on behalf of an investor group, per Fred Flinstone".
Fred delivered the letter to the president of Rubble Inc. On receipt of the letter, Barney asked
who the investors were and Fred arranged for Dino, a member of the investor/land developers
group, to call Barney and reassure him that Flinstone Corporation had authority to sign the letter
on the investor group’s behalf. Dino phoned Barney to assure him, but did not reveal the fact that
he was a principal in the group that had established the competitor construction company, Slate