Business law lecture notes

- Fraudulent - negligent- if you don’t show reasonable grounds it is not innocent. - innocent- if you show reasonable grounds it is innocent - rescission of the contract can be done as a remedy.

event of default clause “represents an attempt to identify in advance those circumstances which, in the case of the borrower would put the loan In jeopardy- the drafting the negotiation of such can only be properly carried out if careful consideration Is given to the particular circumstances of the borrower present and future”.

- FSAPRA- conduct and day to day regulation- argument still is, that they still favour a like touch self-regulatory approach and therefore, the same problems will emerge again. Nothing to suggest that It has been solved. May be problems in future if banks over lend. No doubt that the vicious rule to put all the assets on the inside and the ability to find other banks it’ll be more difficult for banks to fail. - Still possible because the regulator may be charging things specifically. = could b...

The CCA 1974 as amended by the CCA 2006 The Consumer Credit Act 2006 Julie Patient: Volume 21 (2006) 6 J.I.B.L.309. 1974 was old fashioned and its approach was to require information to be given to consumers so that they could make the right choice. If you didn’t then there would be certain consequences for that. The consumer credit 2006 is a slightly more modern piece which wasn’t completely a new piece of legislation. In particular, it introduced unfair relationships.

No such binding obligation outside of that. You need to be aware that there is such a thing as common law set off and equitable set off. To a large extent – complicated. Use it I the general sense. Common law set off is basically a plus and minus and you do it. equitable set off means if you are not sure about the position, you have some doubt as to ownership, then you shouldn’t set off. Equitable uncertainty or it would be uncertain for it to set off. Because banks do it and are not n...

Interest— Caused problems is the legislation CRA 2015 with minor modification- objector effect- it came about because of European union directive. Idea in Europe was to have a doctrine of fair terms and the English approach is to say the directive is not part of English law but to enact our own legislation. If and when we Brexit, this act is an English piece of legislation and will continue regardless.

Repayment on demand and limitation act 1980 - General lending - Domestic banking not so detailed type of banking - Situation where a bank advances money over time or an overdraft or just simply by agreement is allowed to borrow money from the bank - All done under mandate- mandate says very little- which is why there are new terms - Domestic side is becoming regulated; terms are becoming a little more developed - Good idea to have a facility letter or as well as a contract.

Confidentiality: • The bank owes a duty of confidentiality to its customers. • The customer also owes a duty to disclose fraud in relation to the bank. • These duties are formed as the bank account is opened at the relevant bank and the duty ends at the death of customer and not when the account is closed. • These duties are established from contract. • Confidentiality arises: o There is no express term in terms of confidentiality, it is an implied term.

Company decision Shareholders and Directors