Questions and Answers
What occurs when two identical offers are sent by two parties to each other?
What does a purported acceptance that includes 'subject to contract' imply?
In which case did the court rule that an acceptance could constitute a valid contract despite the absence of a formal agreement?
What is required for an acceptance to be valid?
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When does acceptance by post take effect?
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What is the consequence of silence or mere intention to accept an offer?
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In Adams v. Lindsell, what mistake did the defendant make regarding the offer?
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What does it mean if a method of acceptance is prescribed but not insisted upon?
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What is a primary restriction placed on trustees or pension fund managers regarding investments?
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What is one of the main objectives of the National Insurance Commission?
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Which of the following is NOT part of the National Insurance Commission's objectives?
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How is the National Insurance Commission characterized as a legal entity?
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What role does the National Insurance Commission play in relation to banks?
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What is a purpose of the working relationship among financial regulators?
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Which of the following functions is NOT performed by fund managers regulated by the National Pension Regulatory Authority?
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What does the National Insurance Commission aim to support in the insurance market?
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What is required for an appointment to be valid in a corporate body?
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What liabilities do past members of a company face if the company winds up within one year of their leaving?
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Which of the following actions can shareholders take?
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Which of the following decisions requires a resolution from the members at their meeting?
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Under Section 144(1) of Act 992, how can a company act?
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When can members of a company act independently of the board?
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What is the nature of liability for limited liability companies?
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Which of the following duties requires prior recommendation from the board?
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What does section 147(1) state about the acts of members in a general meeting or the board of directors?
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Under what condition can a person transact with a company without assuming liability for the company's actions?
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What document can a person presume to be authentic according to section 150 of Act 992?
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What is the status of a person having dealings with a company in relation to its incorporation?
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Which of the following statements is true regarding the authority of company officers or agents?
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When is a person not entitled to assume a company's authority according to section 150?
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What happens to a contract if it includes a meaningless phrase?
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What liability does a company face when a managing director acts in the usual course of business?
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Under what conditions can a contract be considered illegal?
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Which of the following is NOT considered a presumption an individual can make when dealing with a company?
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What is required for a contract to be valid in terms of consideration?
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In the context of consideration, what did Currie v. Misa (1875) establish?
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What does the term 'consideration' imply in a contract?
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What was the legal outcome for the employee in Miller v. Karlinski (1945)?
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Which of the following statements about consideration is true based on Kwadey v. Okantey (1972)?
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What determines the severability of a phrase in a contract?
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Study Notes
Trustee and Pension Fund Regulations
- Section 178 prohibits trustees or pension fund managers from investing in shares or securities issued by themselves, custodians, or their shareholders to avoid conflicts of interest.
National Insurance Commission
- Established under the Insurance Act, 2021 (Act 1061) to regulate and supervise the insurance market.
- A body corporate with perpetual succession, can sue and be sued.
- Objectives include:
- Promoting a fair, efficient, and stable insurance market.
- Protecting past, current, and prospective customers.
- Contributing to stable financial systems.
- Encouraging financial inclusion and insurance penetration.
Working Relationships Among Financial Regulators
- Regulatory bodies have supervisory roles over licensees.
- The National Insurance Commission regulates banks licensed by the Central Bank acting as custodians and public companies.
- Fund managers regulated by the National Pension Regulatory Authority are also licensed by the Commission.
Liability of Members (Section 40 of Act 992)
- Members must contribute to outstanding amounts before winding up.
- Past members are liable for company debts if winding up occurs within a year after leaving.
- Shareholders have rights to:
- Recommend actions to the board.
- Ratify board decisions.
- Initiate legal actions on behalf of the company when necessary.
- Act in specific cases of board incapacity or deadlock.
- Resolutions made at member meetings include:
- Dividend declarations and accounts consideration.
- Director and auditor appointments and remuneration fixings.
Acts Done by or on Behalf of the Company
- A company acts through its members or board as per the constitution.
- Company is liable for acts performed by members or directors within their authority.
- Liability exceptions apply if the person knew of a lack of authority or irregular actions.
Legal Assumptions Regarding Company Dealings
- Assumptions for external dealings include:
- Valid incorporation and appointment of officers.
- Authority of officers to issue documents and authenticate them.
- Seals of the company being duly authenticated.
- These assumptions are invalidated if the person had actual knowledge to the contrary.
Contractual Decisions and Acceptance
- Cross offers do not constitute acceptance as both are offers.
- Acceptance may be conditional upon a formal contract being drawn up.
- Acceptances must be communicated clearly; mere intention or silence does not count.
- If a mode of acceptance is prescribed, it must be followed; otherwise, any reasonable method may suffice.
- Acceptance by post is effective upon posting.
Legality of Purpose
- Contracts may be void if they involve illegal activities or breaches of law.
- Ignorance of law does not excuse illegality in contracts.
Consideration
- Contracts require consideration, which is the value exchanged between parties.
- Defined as rights, benefits, or detriments that accrue to parties involved.
- A promise can only be enforced if the promisee provided consideration.
- Consideration must be real and sufficient, though not necessarily adequate.
- Past rulings illustrate that certain agreements, even informal, can constitute binding contracts.
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Description
This quiz covers key aspects of Section 178 of the Insurance Act, 2021, focusing on the regulations that prevent trustees and pension fund managers from conflicts of interest when investing pension fund assets. Explore the roles of the National Insurance Commission and the implications for fair dealings in fund management.