Business Law Lecture Review

Comprehensive practice flashcards covering Business Law concepts from Week 1 to Week 7, including Botswana legal history, contract law, company law, agency, credit, and insolvency.

How is 'Law' defined in the context of government and society?

Law is a set of rules made by the government to guide behavior in society, telling people and organizations what they must do, what they must not do, and what happens if they break those rules.

What does Administrative Law specifically deal with?

It deals with decisions made by government departments and controls how public officials do their work to ensure fairness and prevent the abuse of power.

What are the three distinct eras in the history of Botswana Law?

The Pre-colonial legal system (Tswana tribes, kgotla meetings), the British colonial era ($1885$ – $1966$), and the period of Independence ($1966$ – present).

On what date did Botswana gain independence from Britain?

September $30$, $1966$.

In the legal system of Botswana, what is 'Customary law'?

Law based on traditions and customs of local tribes, used in family issues like marriages and inheritance, including rules about 'bogadi' (bride price).

What is the meaning of 'Judicial Precedent' within Common Law?

It means that courts follow previous court decisions when making new decisions, such as lower courts following a principle established by the Court of Appeal.

How is the President of Botswana elected and what is their term length?

The President is elected by the National Assembly for a $5$-year period.

What is the composition of the National Assembly in Botswana?

It consists of $57$ members, with $4$ being appointed by the President and the rest elected by the public through general elections.

What is 'Limited liability' regarding company shareholders?

It means shareholders are not personally responsible for company debts; if a company owes money, shareholders can only lose the amount they invested (e.g., $P1,000$) and not their personal property.

Contrast 'Ordinary shares' and 'Preference shares' regarding voting and dividends.

Ordinary shareholders have voting rights and receive a variable rate of dividend based on profit. Preference shareholders have no voting rights but receive fixed dividends before ordinary shareholders and have priority if assets are sold.

What is the difference between a 'Merger' and an 'Acquisition'?

A merger is when two or more companies join to form one new company ($Company A + Company B = Company C$), while an acquisition is when one company buys another company.

What are 'Real rights' in contract law?

Rights that affect property or physical assets, granting the holder control over a specific object, such as ownership, possession (lease), easements, or mortgages.

Name the seven requirements for a valid contract.

Offer, Acceptance, Consideration, Intention to create legal relations, Capacity (age $18$+ and mentally stable), Legality of purpose, and Certainty of terms.

Define 'Rescission' as a remedy for breach of contract.

The process of canceling the contract and returning both parties to the positions they were in before the contract was made, often due to fraud, mutual mistake, or duress.

What is 'Merx' in a contract of sale?

The term 'merx' refers to the particular thing or object that is the subject of the transaction, which must be identified and agreed upon by both parties.

Distinguish between 'Condition precedent' and 'Condition subsequent' in a contract of sale.

A condition precedent must occur before the contract becomes binding (e.g., passing an inspection). A condition subsequent applies after the contract is in effect and can cancel it automatically if a specific event occurs.

What is 'Apparent authority' in the law of agency?

Authority that exists when a third party believes an agent has power to act for a principal based on the principal's behavior or the agent's role, binding the principal to the agent's actions.

What is the 'Right of subrogation' for a surety?

The right of the surety to recover money from the principal debtor by stepping into the shoes of the creditor after payng off the debt.

Define 'Balance sheet insolvency'.

A financial state where a business's total liabilities exceed its assets, meaning it owes more than it owns.

What is an 'Impeachable (voidable) disposition'?

A transaction or transfer of property that can be reversed in court because it was made unfairly, such as selling property to avoid paying debts or transferring assets to defraud creditors.

Identify the three types of trustees in insolvency proceedings.

Bankruptcy trustee (personal cases), Administrator (business restructuring), and Liquidator (selling assets to pay debts).

What is the difference between 'Members’ voluntary winding up' and 'Creditors’ voluntary winding up'?

Members' voluntary winding up occurs when a company is solvent and chooses to close. Creditors' voluntary winding up occurs when the company is insolvent and creditors agree to liquidate it.