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    Tutorial 1 - Personal Property: LLAW2012 Commercial Law 2024-25, First Semester

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    Tutorial 1 - Personal Property: LLAW2012 Commercial Law 2024-25, First Semester

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    T1

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    Tutorial 1 - Personal Property: LLAW2012 Commercial Law 2024-25, First Semester

    Uploaded by

    ctk

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    LLAW2012

    Commercial Law
    2024-25, First Semester

    TUTORIAL 1 – PERSONAL PROPERTY

    Question 1
    Constance drove her car to attend a meeting and parked it at a nearby open-air
    carpark with low security. It was her first time parking there. After parking and
    locking her car, she went to the booth at the entrance where the attendant gave her
    a handwritten ticket containing only the entry time and car plate licence number.

    After the meeting, Constance returned to the carpark to retrieve her car but was
    unable to locate it. CCTV footage revealed that a thief had stolen the car when the
    attendant was briefly away from the booth.

    (a) Advise Constance on whether she could claim against the carpark owner.
    (b) Would your answer in (a) be different if Constance was required to leave the
    car key with the carpark attendant?

    (Note: You are only concerned with the personal property aspect of the case and not
    the tort of negligence aspect.)

    Question 2
    Lewis took his sports car to a repair garage owned by Falcon Limited (‘Falcon’) for
    maintenance and repair. He was told that it would take about a week for the work
    to be completed so he left the car with the garage.

    The car was hired by Lewis under a hire purchase agreement with a finance
    company, Star Finance Limited (‘Star Finance’). However, Lewis is now bankrupt
    and has failed to pay for the last two instalments under that agreement. Star
    Finance is entitled to take back possession of the car under the agreement and
    approached Falcon to request the car’s return. When Star Finance’s representative
    arrived at the garage, he was met with opposition from another person named
    Jenson, who also claimed to be entitled to the vehicle.

    It was transpired that after leaving the car with Falcon, Lewis sold the car to Jenson
    for immediate cash, and informed Falcon that Jenson would pick up the car
    following repairs.

    © Eva Tam 2024


    Please consider and discuss the nature of rights/interests of each of Lewis, Falcon,
    Jenson and Star Finance in relation to the car, and the relative strengths of such
    rights/interests. If there are any missing facts which you consider to be relevant,
    specify what they are and how they would affect your analysis.

    (Note:
    - A hire purchase agreement is an agreement pursuant to which a person hires
    goods from the owner, usually the financing company, for a period with an option
    at the end to purchase the goods. The hirer can be regarded as the bailee
    throughout the duration of the agreement.
    - You do not need to consider the Sale of Goods Ordinance (Cap26) which may affect
    your analysis and which you will learn later in the course.)

    Question 3
    (a) Katie has a successful online business selling her own branded clothing, and she
    intends to open a physical shop. However, she lacks the necessary capital to
    rent a place. To obtain immediate cash, Katie plans to sell certain receivables
    from her business. These receivables consist of the full amount owed by
    customer A and a portion of the amount owed by customer B (the
    ‘Receivables’). Sunny is interested in purchasing the Receivables for a lump
    sum of HK$500,000.

    Advise Sunny on the necessary legal requirements that he needs to comply with
    to obtain the Receivables and related implications.

    (b) How would your answer in (a) be different if there is a clause in all of Katie’s
    contracts with the following wordings:
    “No party to this agreement may, without the prior written consent of the other,
    assign or transfer the benefit of all or any of the other party’s obligations under
    this agreement, nor any benefit arising under or out of this agreement.”

    (c) Could the counterparties to the contracts in Katie’s business transfer both the
    benefits and burden under those contracts to third parties?

    - End -

    © Eva Tam 2024 2

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