PROPERTY LAW HELP PLEASEee?
Answer BOTH questions in this section (they are worth 30 marks each)
1.Bob was employed by Adverb plc, a computer company, as a buyer who bought for the company certain components which were used in the manufacture of the computers. He has corruptly been taking commissions from Soon Ltd, one of the companies with whom he dealt on Adverb’s behalf. He was also treasurer of his local cricket club.
Over the last few months Bob has had the following transactions with the bank account into which the corrupt commissions were paid.
At a time when the account held £4,132 of Bob’s own money, he paid into the account a cheque of £5,000 from Soon. Shortly thereafter he wrongly paid into the account £474 of cricket club funds.
He then withdrew £4,125 from the account and used this to buy shares in X Company. He then withdrew further sums amounting to £5,228 and used these on a holiday.
He then paid in a further cheque of £5,000 from Soon.
He applied for a loan under a scheme run by Adverb, his employer, for loans towards car purchase, which were made on the strict basis that the money be used only for this purpose and should be immediately returnable if it was not so used.. He was given a loan of £15,000 at 6% pa interest. He paid this into the account.
He also paid in a further £1,450 of cricket club funds.
Bob did not buy a car but instead withdrew £16,150 from the account and purchased shares in y Y Company.
He then withdrew £2,000 and gave this to his brother as a contribution to the cost of his niece’s wedding. He also paid £1,223 from the account for furniture that he gave to his niece and her husband as a wedding gift.
He next paid in a further £5,000 cheque from Soon and then withdrew £4,780 to fund a further holiday,
The shares in X Co. have proved a profitable investment and they are now worth £5,570. However, the shares in Y Co have fallen to £12,100.. The furniture bought for Bob’s niece is now worth £1,000.
Adverb plc have now discovered that Bob has been taking commissions from Soon Ltd and that he has not used the loan to purchase a car. The discrepancies in the cricket club accounts have also come to light.
Advise Adverb plc and the cricket club on proprietary claims that they may make.
2.Odun owned the freehold of a house subject to a legal mortgage in favour of Ends Finance Ltd. The mortgage deed provided that Odun should not grant any leases or part with possession of the house without the consent of Ends Finance Ltd. In breach of this provision, Odun granted a two-year lease of the house to Tricia, who was unaware of mortgage or its terms. Ends Finance Ltd learnt of this breach and served notice on Odun, addressed to him at the house, exercising its right under the mortgage deed to call in and make immediately payable the whole capital sum of the mortgage loan. in the event of any breach of the terms of the mortgage. The next week, whilst Tricia was on holiday, representatives of Ends Finance Ltd entered the house and changed the locks. Ends Finance Ltd then put the premises in the hands of an estate agent for sale at the price suggested by the agent, which reflected its bad state of repair and decoration. . John, an employee of Ends Ltd then made an offer via the agent to buy, which Ends Finance accepted. Odun claims that a higher price would have been obtained if Ends Finance had taken time to put the house into a better state of repair
Advise Odun and Tricia on possible claims against Eden Finance Ltd and against John.