Jamie has made a decision to form a company and call it J Ltd. He sent all the documentation to Companies House.on the 28th June 2021 and is waiting to hear from them. In the meantime, he has been approached by A Ltd who have offered to sell him a range of goods at a discounted rate. They wish to sell immediately, but Jamie is wary of purchasing the goods until he has confirmation that the company has been formed. On the 23rd June he enters into a contract with A Ltd to purchase goods to the value of £8,000. He signs the contract “by and on behalf of J Ltd”. Jamie has also been approached by Roger and Zahid who have expressed an interest in helping with company. Roger has £6,000 which he wishes to invest, and Zahid has ££8,000 which he wishes to invest. Jamie feels that having Roger and Zahid as shareholders would be very beneficial to his company. Answer the following questions:

 

Part a). In the event that J Ltd does not come into being, who would be liable on the contract Jamie has entered into? Explain your answer with legal authority.

Part b). Advise Roger and Zahid regarding issues to do with liability on any shares they may eventually purchase.

Part c). To what extent do you think a private limited company is more advantageous for Jamie as compared to a public limited company.

Answer rating: 100% (QA)

mny is rtifiil ersn nd seerte frm its shrehlder mny hs seerte lehl entity with its mmn sel mny n sue ... View the full answer