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Omar, Aziz and Rashid have opened a mobile phone repair shop in Bradford. Conscious of the risks involved on Feb 15th they contact Ian, a local solicitor, to register their business as a private limited company called ‘Phonedoctor Ltd’. They ask him to do this ‘as soon as possible’.

On Feb 25th they sign a contract to purchase £5,000 worth of parts and tools from ‘Interstellar Ltd’. The goods are supplied on 90 day terms, meaning that the payment is due in May. Unknown to Omar, Aziz and Rashid, Ian was killed in an accident on Feb 18th, before he registered their company. The company was eventually registered by Ian’s replacement in early March.

Unknown to Aziz and Rashid, Omar has been negotiating a deal with ‘Sim World’ a shop which sells fine mobile phone accessories and has secured a contract for orders worth £200,000 but, rather than pass the order to ‘Phonedoctor Ltd’, he decides not to inform the others and to take the order himself.

Unfortunately, Omar, Aziz and Rashid began to disagree about the direction of the business almost immediately and this had an impact on the success of the enterprise. They place the company in liquidation in April, with virtually no assets remaining. They think that they will be protected from the company’s debts, but will require advice on this point.

When examining the relevant documentation, the directors of Interstellar Ltd have noticed that the company was not registered at the time of the contract and have asked you to prepare a report, explaining the relevant legal principles and advising them on any claim which Interstellar Ltd may have against Omar, Aziz and Rashid personally.

In our exam we have been given this case study to follow and with this case study we will answer our exam questions.
we would like you to read the case study and give us a answer on how we should answer this case study.
I have attached all relevant power points and topics we have leanrt and need you to use these powerpoints to give us an idea of how to tackle the questions which they may ask us.

we don’t know what questions they will ask but by looking at the material attached and the case study try to answer the case study.

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