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 2023 – L1 – SB – Q4b – Law of Contract

Discusses the legal implications of non-disclosure in an insurance contract involving Abokhasomi.

  1. Abokhasomi was told that he had kidney problems and lung infection, neither of which he disclosed to the insurer in the proposal form for a health policy. Abokhasomi filled out the proposal form, stating that no health issues were present. The policy was issued after paying the premium. Three months later, he became sick, and a test revealed a lung infection. He now wants the insurer to pay for the treatment, which the insurer has declined on the grounds of non-disclosure.

Required:
State the applicable law and advise the parties. (5 Marks)

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BL – Nov 2023 – L1 – SB – Q2b – Law of Contract

Discusses the principle of privity in the context of a contract dispute over the sale of Unique Pami products.

Omokaro, a distributor, entered into a contract with Unique Pami Company Limited not to sell their products above ₦25,000 per carton. Umiena bought Unique Pami products from Omokaro below ₦25,000 and agreed with him not to sell the products above ₦25,000 per carton. In breach of the agreement, Umiena is selling Unique Pami products above the ₦25,000 price, and Unique Pami Company is threatening to sue Umiena for the breach of contract.

Required:
State the applicable law and advise the parties. (5 Marks)

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BL – Nov 2023 – L1 – SA – Q15 – Law of Contract

This question asks about the consideration in a hire purchase contract.

Consideration in a hire purchase contract consists of:
A. Instalments
B. Purchase price
C. Rentals
D. Reversionary price
E. Deposit and balance

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BL – Nov 2023 – L1 – SA – Q11 – Law of Contract

This question asks about elements that are not part of a valid contract.

Which of the following is NOT an element of a contract?
A. Acceptance
B. Capital gains
C. Consideration
D. Offer
E. Intention to create legal relation

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BL – Nov 2019 – L1 – SB – Q3c – Law of Contract

Contract law, Frustration, Natural events, Performance of contract

Chief Wadada, a very prosperous trader, recently completed the construction of a mansion in his village and intends to have the house-warming ceremony on New Year’s day. He contracted Exclusive Décor Enterprises to do the interior decoration of the mansion, which must be completed not later than a week before the house-warming.

Exclusive Décor Enterprises moved all the required materials to site on schedule, but a heavy rainstorm ravaged the whole village, flooded the mansion, and destroyed all the materials on site. The decoration could no longer be done until after the New Year’s day when the flood would have receded. Chief Wadada canceled the contract and refused to pay the contract sum demanded by Exclusive Décor Enterprises, who intends to make a claim in court for the payment of the contract sum.

Required:
Advise Exclusive Décor Enterprises, stating the legal issues involved. (8 Marks)

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BL – Nov 2019 – L1 – SB – Q2c -Law of Contract

Explanation of frustration in contract law and its causes.

Under law of contracts, a contract may be discharged in various ways.
Required:

i. Explain “Frustration” briefly under the law of contracts. (3 Marks)

ii. State causes of frustration of contract. (5 Marks)

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BL – May 2023 – L1 – SB – Q1C – Law of Contract

Advise Fudu on the legal issues involved in his contract with Jaffer for the importation of banned rice.

Jaffer, who trades in the importation of edible consumables from Cotonou, agreed with Fudu to import and deliver to Fudu in Lagos 50 tonnes of foreign parboiled rice in 50kg bags for a total value of N7 million. Fudu paid an advance of N3 million, with the balance payable on delivery. However, Jaffer sent the bags of rice, which were confiscated by the Nigeria Customs Service at the border, as the Federal Government had banned the importation of rice into Nigeria. Fudu is aggrieved for non-delivery of the consignment and intends to sue Jaffer to recover the N3 million deposit he paid.

Required:
Advise Fudu accordingly, stating the legal issues involved.

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BL – May 2023 – L1 – SA – Q1 – Law of Contract

Identify an element of a valid contract.

Which of the following is an element of a valid contract?
A. Conditional acceptance
B. Intention to create legal relations
C. Negotiation offer
D. Anticipatory offer

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BL – Nov 2019 – L1 – SA – Q10 – Law of Contract

Identify the legal term for a contract discharged due to impossibility.

A contract which becomes impossible to fulfil because of unforeseen circumstances is said to be discharged by:
A. Frustration
B. Breach
C. Inaction
D. Uncertainty
E. Compromis

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BL – May 2017 – L1 – SB – Q5f – Law of Contract

Explains the process of offer and acceptance in an insurance contract.

A contract of insurance has elements of offer and acceptance.

Required:
Explain briefly the making of offer and acceptance in insurance contracts.

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