i) Capacity:

• A person is said to have capacity when they are of sound mind and have attained the age of majority (i.e., 18 years in Ghana). In order to form a wholly valid contract, parties must be over 18 years of age and be of sound mind. Under Section 2 of the Sale of Goods Act, capacity to buy and sell is regulated by the general law concerning capacity to contract and to transfer and acquire property.
  (2 marks)

ii) Acceptance:

• In order to constitute a valid contract, there must be an offer and an unqualified acceptance. Acceptance may be oral, written, or implied from conduct. Under Section 52 of the Sale of Goods Act, 1962 (Act 137), the buyer is deemed to have accepted the goods when:
  • He intimates to the seller that he accepts them; or
  • He does not, within a reasonable time after delivery of the goods, inform the seller that he rejects them; or
  • He wrongfully refuses or neglects to place the goods at the disposal of the seller after notifying the seller that he rejects them.
    (4 marks)

iii) Misrepresentation:

• A misrepresentation is (a) a false statement, (b) of material fact, (c) made by a party to a contract or his agent, (d) inducing the other to enter into the contract.
  (2 marks)

iv) Goods:

• Goods are defined as “movable property of every description, and include growing crops or plants and other things attached to or forming part of the land which are agreed to be severed before sale by or under the contract of sale” (Section 81 of Sale of Goods Act, 1962, Act 137).
  (2 marks)

v) Quantum Meruit:

• Where there is a breach of an essential condition in a contract, the injured party may either (a) seek to enforce the contract and sue for damages; or (b) treat the contract as discharged, in which case they cannot sue for damages for its breach. However, where they adopt the second course and treat the contract as discharged, they are entitled to bring a quasi-contractual action for compensation for work done or services rendered. This is called a Quantum Meruit action (literally meaning “how much is it worth?”).
  (2 marks)