Overview
Assignment 1 Brief
Bloomsbury Trading is seeking to raise more capital and so holds an event for potential investors. Jasmine, the Chief Financial Officer and Paul, the Director of Marketing, each give presentations at the event. Jasmine presents the sales figures, showing that net profits for the last 3 financial years were £1.5 million, £3 million and £7 million respectively. These are based on the accounts which she carefully went through in her presentation, checking them whenever necessary with Peter, who compiled the accounts. Paul then talks about the potential for growth, highlighting a new contract that the company has just signed with a major customer in South Korea.
Priya invests £50,000 in the company on the basis of the presentations. Unfortunately, the following year, Bloomsbury Trading makes a significant loss, with the result that its shares are now worth 35% less than the price that Priya paid. It then emerges that losses had also been made the previous year and Peter had falsified the accounts which he had given to Jasmine, in order to keep his job. Nor is there a contract with any Korean customer. Isabella had travelled to Korea to meet with potential customers and although she sent Paul a report when she returned, Paul had not read it.
What remedies might Priya have against Jasmine, Paul or both? (60 marks)
What difference, if any, would it make to your answer if the statements regarding the company’s profits and the Korean contract had been made in a prospectus? (40 marks)
Word limit: 1,000 words. You will be penalised if you exceed this. See Word Count and Marking of Overlength Coursework Policy (under “Degree regulations, policies and procedures” on Moodle).
Submission deadline: Tuesday 25 November 2025, 11.30 pm. You will be penalised 2 marks per day if you submit after this.
Assignment 1 Marking Rubric
Knowledge of relevant principles of law: 40%
Application of principles of law to facts of the question: 30%
Clarity of structure: 15%
Reference to relevant statute and/or case law: 15%
No AI And No Plagarism