Topic: Law of Contract

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BL – Nov 2020 – L1 – SB – Q6b – Law of Contract

Define express terms, implied terms, conditions, and warranties in a contract.

Contractual agreements usually contain terms that are different in nature and importance.

Required:
Define the following terms:
i. Express terms
ii. Implied terms
iii. Conditions
iv. Warranties

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BL – Nov 2020 – L1 – SB – Q4b – Law of Contract

Define material fact in insurance and list exceptions to disclosure duty.

A contract of insurance is a contract of utmost good faith.

Required:
i. Explain briefly the term “material fact” in a contract of insurance.
ii. State THREE exceptions to the duty of disclosure of material facts.

 

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BL – Nov 2020 – L1 – SB – Q3b – Law of Contract

Explain the capacity of specific individuals to contract, focusing on drunkenness, insanity, and infant contracts.

i. Capacity to contract is an important element of a legally enforceable contract.

Required:
Explain the capacity of the following persons to enter into a contract:

  • Drunken person
  • Insane person

ii. Explain a valid and binding contract on infants.
iii. Explain void contracts by infants.

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BL – Nov 2020 – L1 – SB – Q3a – Law of Contract

Discuss how courts assess intent to create legal relations and advise on breach in social and commercial contexts.

i. A contract may be enforced if the parties have an intention to enter into a legally enforceable agreement.

Required:
Explain ONE way by which the courts determine whether or not the parties to an agreement have an intention to create legal relations.

ii. Case Scenario:
‘A’ and ‘B’ entered into an agreement to meet at a gym for their daily physical fitness exercises. ‘B’ forgot about the agreement and kept ‘A’ waiting endlessly. ‘A’ is furious and intends to sue ‘B’ for breach of agreement.

Required:
Advise ‘A’, stating the legal issue involved.

iii. Case Scenario:
‘A’ is a dealer in textile materials. He sold ten bales of textile materials to ‘B,’ his childhood friend. ‘B’ has refused to pay for the ten bales of materials, arguing that he is a friend of ‘A.’

Required:
Advise ‘A,’ who intends to sue ‘B,’ stating the legal issue involved.

iv. Case Scenario:
‘A’ promised to attend a luncheon organized by ‘B.’ ‘B’ spent a lot of money to prepare for the luncheon. ‘A’ did not turn up as agreed. ‘B’ is aggrieved and intends to sue ‘A’ for the cost of the special dish.

Required:
Advise ‘B,’ stating the legal issues involved.

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BL – Nov 2020 – L1 – SA – Q9 – Law of Contract

Objective question on understanding the nature of legally enforceable agreements.

9. A voluntary agreement between two or more persons, which confers legally enforceable rights, duties, and liabilities on the parties is called a/an
A. Contract
B. Offer
C. Guarantee
D. Warranty
E. Condition

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BL – May 2012 – L1 – SB – Q4B – Law of Contract

Explain the concept of undue influence in contract law.

For a contract to be binding on all the parties to it, it must not be tainted by any vitiating element. Undue influence is one of such vitiating elements.
Required: Explain briefly undue influence as a vitiating element in a contract.

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BL – May 2012 – L1 – SB – Q4A – Law of Contract

Advise on the implications of a contract entered into by a minor.

Samuel, aged 16, is the son of Chief Luke Umeh, a multi-billionaire. Two weeks ago, Samuel drove his father’s 2011 model Jeep vehicle to a car exhibition. At the exhibition, he saw a year 2012 model of the same Jeep and entered into a contract with the manufacturers to buy two of the latest Jeep. The two Jeeps were delivered to Samuel and he drives them to his secondary school to impress his school mates. The manufacturers of the Jeep, Manny Auto Engineering Limited, requested payment for the Jeeps but Samuel refused to pay, claiming that he is an infant. The manufacturers are insisting on full payment for the vehicles by Chief Umeh.
Required: Advise the following parties on the implications of their actions:
(i) The manufacturers;
(ii) Samuel; and
(iii) Chief Luke Umeh.

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BL – May 2012 – L1 – SA – Q17 – Law of Contract

Identify the term for a claim based on the value of work done.

A party to a contract who claims damages on the basis of work done or as much as he deserves, is said to be claiming on:

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BL – May 2012 – L1 – SA – Q16 – Law of Contract

Identify the Latin term that means a person is not bound by a deed due to a misunderstanding.

Non est factum means:

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BL – May 2012 – L1 – SA – Q15 – Law of Contract

Identify the term for withdrawing an offer before acceptance.

Withdrawal of an offer before it is accepted is also known as:

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BL – Nov 2022 – L1 – SA – Q16 – Law of Contract

Identifying the legal term that means "utmost good faith."

Which of the following means “utmost good faith”?

A. Caveat emptor
B. Uberrimae fidei
C. Ultra vires
D. Per in curiam
E. Non est factum

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BL – May 2022 – L1 – SA – Q2 – Law of Contract

Identify what a contract under seal does not need to be supported by.

A contract under seal need NOT to be supported by
A. Consideration
B. Petitioner
C. Offer
D. Acceptance
E. Capacity

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BL – Nov 2022 – L1 – SA – Q10 – Law of Contract

Identifying the term for willful failure to perform contract obligations.

A situation in which a party to a contract willfully fails to perform his/her obligations under the contract is referred to as:

A. Breach
B. Defiance
C. Refusal
D. Disobedience
E. Illegality

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BL – May 2021 – L1 – SB – Q4b – Law of Contract

Explaining the principle of past consideration in contract law as applied to a promise made after an act is completed.

Luandem resides in Rayfield area of Jos and has many helpful neighbours. The closest of these neighbours is Dakkas, a specialist in landscaping. Luandem travelled to Maiduguri as a volunteer to assist the International Commission of the Red Cross in caring for Internally Displaced Persons (IDPs). The escalation of internal displacement made it impossible for Luandem to return to Jos on time to the extent that he spent six months of the rainy season there instead of a month that he planned to spend. Seeing that Luandem’s compound was overgrown with weeds, Dakkas took it upon himself to mow the lawns twice a month for four months. In addition, he planted roses as hedges to the compound.

Luandem returned from Maiduguri last month and promised to pay Dakkas a sum of N100,000 for his labour of love in taking care of his compound in his absence. Dakkas has waited for two months in expectation of the payment. He is hard-pressed for money presently because of his son’s demand for school fees. Therefore, he intends to sue Luandem for the money after repeated demands by him and failed promises by Luandem.

Required:
Explain the principle of the law of contract that applies to Dakkas’ plan and apply it in advising Dakkas.

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BL – May 2021 – L1 – SB – Q4a – Law of Contract

Distinguishing between an offer and an invitation to treat in contract law.

Preliminaries of a contract may involve an offer or invitation to treat.

Required:
Distinguish an offer from an invitation to treat.

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BL – May 2021 – L1 – SA – Q15 – Law of Contract

Identifying the type of contract for a sum of money to be received after an inevitable event.

A contract by which the representative of a party is to receive a specific sum of money on the occurrence of an event that is bound to happen is a contract of:

A. Insurance
B. Novation
C. Compensation
D. Assurance
E. Quantum meruit

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BL – May 2021 – L1 – SA – Q11 – Law of Contract

Identifying the correct term for an offer to receive an offer.

An offer to receive an offer is known also as an

A. Intention to receive acceptance
B. Invitation to treat
C. Inclusion of consideration
D. Implosion of offer
E. A considerate offer

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BL – May 2021 – L1 – SA – Q10 – Law of Contract

Identifying the nature of acceptance that is subject to contract.

An acceptance that is subject to contract indicates a

A. Continuing negotiation
B. Void contract
C. Valid contract
D. Voidable contract
E. Closed negotiation

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BL – May 2021 – L1 – SA – Q7 – Law of Contract

Identifying the correct charge for procuring property through a dishonoured cheque.

A person that procures property or credit by a cheque that is dishonoured could be charged with:

A. Stealing by trick
B. False procurement
C. Obtaining by false pretence
D. Contracting by fraud
E. Conversion

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BL – May 2021 – L1 – SA – Q2 – Law of Contract

Identifying the option that is not an equitable remedy.

Which of the following is not an equitable remedy?

A. Injunction
B. Specific performance
C. Damages
D. Rescission
E. Rectification

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