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?Az Ltd operates a shipbuilding business which specialises in constructing and modifying ships to order. In?2011, Az Ltd entered into an agreement with Bob to completely rebuild a ship to Bob's specification for a?total contract price of ￡7 million. However, after completion, Bob informed Az Ltd that, due to the downturn?in the world economy, he no longer needed the ship. Az Ltd had already expended ￡5 million on altering the?ship, and immediately started an action against Bob for breach of contract.?

However, in the week before the case was to be decided in the court, Az Ltd sold the ship for the same?amount of money which they would have received from Bob.?

28

【論述題】

?State the purposes of awarding damages for breach of contract?

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考點(diǎn)：Chapter5Contentofcontracts

?Damages in contract are intended to compensate an injured party for any financial loss sustained as a?consequence of another party's breach. The object is not to punish the party in breach, so the?amount of damages awarded can never be greater than the actual loss suffered. The usual aim of the?award of damages is to put the injured party in the same position they would have been in had the?contract been properly performed (expectation loss).?

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Vlad generates a substantial income from illegal tax evasion and sought advice from Gloria (his personal accountant) on how to dispose of his illegal earnings. Gloria suggested that to disguise the source of the funds, Vlad should purchase a chain of restaurants and pass his gains from the illegal operation through the restaurants' accounts. Vlad agreed with Gloria’s proposal and appointed her as the restaurant chain’s finance director and together they passed the illegal money through the operation.

25

【論述題】

State the offence of money laundering.

State whether Gloria has any liability for money laundering.

State whether Vlad has any liability for money laundering.

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In January the board of directors of Huge plc decided to make a takeover bid for Large plc. After the decision?was taken, but before it is announced, the following chain of events occurs:?

(1) Slye, a director of Huge plc, buys shares in Large plc?

(2) Slye tells his friend Mate about the likelihood of the takeover and Mate buys shares in Large plc?

(3) At a dinner party Slye, without actually telling him about the takeover proposal, advises his brother?Tim to buy shares in Large plc and Tim does so?

28

【論述題】

?State whether Slye committed insider dealing when he bought shares in Large plc?

?State whether Mate has any liability for insider dealing?

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