Contract Law – Page 2

BCL – Nov 2024 – L1 – Q4c – Contractual Obligations of a Minor

Legal validity of a contract involving a minor performing services for payment.

Question

Amevo is a minor and a professional dancer. He entered into a contract to perform a series of dances for GH¢5,000 an hour per night of performance. The rule as accepted was that failure to perform in one series without reasonable excuse would incur a percentage deduction from his earnings at subsequent performances. Amevo failed to perform at one of the series. His attention was drawn to the rule, but he now thinks the deduction should not be made.

Required:
Advise Amevo.

Answer

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Tags: Beneficial Contracts, Breach of Contract, Contract Law, Legal obligations, Minor’s Contracts
Level: Level 1

Topic: Contract Law
Series: Nov 2024

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.

Question

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.

Answer

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Tags: Breach of Agreement, Commercial Agreements, Contract Law, Legal Intention, Social Agreements
Level: Level 1

Topic: Law of Contract
Series: NOV 2020

BL – May 2012 – L1 – SB – Q5B – Agency Law

State two differences between a hire purchase agreement and a sale agreement.

Question

A hire purchase agreement and a sale agreement are similar but not identical. Required: State any TWO differences between a hire purchase agreement and a sale agreement.

Answer

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Tags: Business Law, Contract Law, Hire Purchase
Level: Level 1

Topic: Agency Law
Series: MAY 2012

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

Explain the concept of undue influence in contract law.

Question

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.

Answer

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Tags: Business Law, Contract Law, Vitiating Elements
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

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

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

Question

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.

Answer

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Tags: Business Law, Contract Law, Minors
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

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

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

Question

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:

Answer

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Tags: Business Law, Contract Law, Quantum Meruit
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

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.

Question

Non est factum means:

Answer

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Tags: Business Law, Contract Law, Non Est Factum
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

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

Identify the term for withdrawing an offer before acceptance.

Question

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

Answer

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Tags: Business Law, Contract Law, Offer
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q4 – Law of Contract

Identify the type of mistake where parties are mistaken about different things.

Question

The type of mistake which the parties to a contract make when they are mistaken about different things is referred to as:

Answer

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Tags: Business Law, Contract Law, Mistake
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q3 – Law of Contract

Identify the term in a contract that is fundamental to the agreement.

Question

State the term of a contract which is fundamental and goes to the root of the contract.

Answer

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Tags: Business Law, Contract Law, Fundamental Terms
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q16 – Law Relating to Banking

Identify the nature of a contract of insurance.

Question

A contract of insurance can be described as one of:

A. Uberrimae fidei
B. Non est factum
C. Volenti non fit injuria
D. Ultra vires
E. Actionable per se

Answer

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Tags: Business Law, Contract Law, Insurance
Level: Level 1

Topic: Law Relating to Banking
Series: MAY 2012

BL – May 2012 – L1 – SA – Q12 – Law of Contract

Identifying when duress renders a contract voidable.

Question

Where a party to a contract was forced to consent to the terms of a contract, such a contract is said to be:

A. Novel
B. Fraudulent
C. Binding
D. Actionable per se
E. Voidable

Answer

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Tags: Business Law, Contract Law, Duress
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q11 – Law of Contract

Identifying when a mistake renders a contract void.

Question

Mistake could render a contract void if it was made before the contract was:

A. Concluded
B. Frustrated
C. Registered
D. Paid for
E. Registered with the government

Answer

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Tags: Business Law, Contract Law, Mistake
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q5 – Law of Contract

Identify which contract is not considered illegal under common law.

Question

Which of the following is NOT an illegal contract at common law?

A. A contract to commit a crime or tort
B. An agreement to solicit for prostitutes
C. A contract to obstruct the administration of justice
D. A contract to supply local goods to a foreign country
E. A contract with an alien enemy during the war

Answer

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Tags: Business Law, Contract Law, Illegal Contracts
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q4 – Law of Contract

Identify the absent element in domestic agreements that makes them non-binding.

Question

Which of the following is absent in a domestic agreement?

A. Capacity to contract
B. Intention to create legal relations
C. Consideration
D. Undue influence
E. Duress

Answer

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Tags: Business Law, Contract Law, Domestic Agreement, Intention to Create Legal Relations
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – May 2012 – L1 – SA – Q3 – Law of Contract

Identify which category of person has limited contractual capacity.

Question

Which of the following categories of persons has limited contractual capacity?

A. Nursing mothers
B. Foreigners
C. Minors
D. Retired legislators
E. Ex-convicts

Answer

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Tags: Business Law, Capacity, Contract Law, Minors
Level: Level 1

Topic: Law of Contract
Series: MAY 2012

BL – Nov 2011 – L1 – SB – Q2b – Law of Contract

Analyzing the breach of contract claim based on the sale of a car and revocation of an offer.

Question

On 1st of May, Adam saw a car in a local garage with a price tag of N300,000. When he went in to buy it, the garage owner, Bala, laughed and said that the tag must have been wrongly labelled as the actual price of the car was N800,000. However, in the circumstances, he said he would split the difference and let Adam have it for N550,000. Adam asked for time to think about the offer and Bala said he could have three days. Two days later, Adam found out that his friend Chibuzor had bought the car from Bala for N700,000. Adam has decided to sue Bala for breach of contract. Advise Adam.

Answer

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Tags: Breach of Contract, Contract Law, Offer and Acceptance, Revocation of Offer
Level: Level 1

Topic: Law of Contract
Series: NOV 2011

BL – Nov 2011 – L1 – SB – Q2a – Law of Contract

Distinguishing between an offer and an invitation to treat.

Question

Distinguish between an offer and an invitation to treat.

Answer

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Tags: Contract Law, Invitation to Treat, Offer
Level: Level 1

Topic: Law of Contract
Series: NOV 2011

BL – Nov 2012 – L1 – SB – Q3 – Law of Contract

Advise on the validity of a contract regarding an offer and its acceptance.

Question

Angela sells fresh fish and made an offer to Mike at a party. Mike undertook to let Angela know his mind by post, since Angela could be reached only by post. On 2 March, Mike posted an acceptance letter to Angela, which got to Angela the day after Angela had sold her fresh fish to Andrew on 5 March. Mike wants to sue Angela for breach of contract.

a. Advise Angela as to whether or not she was bound to Mike by contract. (5 Marks)

b. Does Mike have a valid case against Angela? Give reasons for your answer. (3 Marks)

c. Is Andrew liable to Mike? State the reason for your answer. (2 Marks)

d. Explain briefly TWO differences between an “offer” and an “invitation to treat”. (5 Marks)

Answer

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Tags: Acceptance, Contract Law, Offer
Level: Level 1

Series: NOV 2012

BL – May 2013 – L1 – SB – Q3A – Hire Purchase and Consumer Credit Transactions

Explain three provisions voided by the Hire Purchase Act in hire purchase agreements.

Question

Explain THREE of the provisions declared void by the Hire Purchase Act in any hire purchase agreement.

Answer

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Tags: Contract Law, Hire Purchase Agreement, Void Provisions
Level: Level 1

Topic: Hire Purchase and Consumer Credit Transactions
Series: MAY 2013

Question Tag: Contract Law

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BCL – Nov 2024 – L1 – Q4c – Contractual Obligations of a Minor

Legal validity of a contract involving a minor performing services for payment.

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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.

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BL – May 2012 – L1 – SB – Q5B – Agency Law

State two differences between a hire purchase agreement and a sale agreement.

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

Explain the concept of undue influence in contract law.

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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.

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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.

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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.

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

Identify the term for withdrawing an offer before acceptance.

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BL – May 2012 – L1 – SA – Q4 – Law of Contract

Identify the type of mistake where parties are mistaken about different things.

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BL – May 2012 – L1 – SA – Q3 – Law of Contract

Identify the term in a contract that is fundamental to the agreement.

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BL – May 2012 – L1 – SA – Q16 – Law Relating to Banking

Identify the nature of a contract of insurance.

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BL – May 2012 – L1 – SA – Q12 – Law of Contract

Identifying when duress renders a contract voidable.

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BL – May 2012 – L1 – SA – Q11 – Law of Contract

Identifying when a mistake renders a contract void.

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BL – May 2012 – L1 – SA – Q5 – Law of Contract

Identify which contract is not considered illegal under common law.

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BL – May 2012 – L1 – SA – Q4 – Law of Contract

Identify the absent element in domestic agreements that makes them non-binding.

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BL – May 2012 – L1 – SA – Q3 – Law of Contract

Identify which category of person has limited contractual capacity.

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BL – Nov 2011 – L1 – SB – Q2b – Law of Contract

Analyzing the breach of contract claim based on the sale of a car and revocation of an offer.

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BL – Nov 2011 – L1 – SB – Q2a – Law of Contract

Distinguishing between an offer and an invitation to treat.

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BL – Nov 2012 – L1 – SB – Q3 – Law of Contract

Advise on the validity of a contract regarding an offer and its acceptance.

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BL – May 2013 – L1 – SB – Q3A – Hire Purchase and Consumer Credit Transactions

Explain three provisions voided by the Hire Purchase Act in hire purchase agreements.

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