Question Tag: Misrepresentation

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LRTB – APRIL 2024 – L2 – QB1 – Negligent Advice by Branch Manager Leading to Customer Loss

A customer sues the bank for losses from purchasing a property based on the branch manager's negligent advice, which was given to help regularize another customer's overdraft; discuss the legal issues and bank's liability.

Your customer, Kwame Kumchacha, is an importer of second-hand shoes from China. He is illiterate but has made a fortune out of the business which he has operated for several years. Kwame Kumchacha operates a Sole Proprietorship Account styled Kumchacha Enterprise. The account of the Sole Proprietorship is at the Spintex Road Branch of your Bank. Today, you received a letter from Ebito Chambers, a law firm, claiming they had been instructed by Kwame Kumchacha to sue your Bank for losses of GHS 2.5 million incurred by him following the negligent advice given to him by the Manager of your Spintex Road Branch, Serwaa Broni. The law firm explained that the Branch Manager advised Kwame Kumchacha to buy a house at Dzorwulu which was put up for sale by Kofi Brokeman, who also banked with the same Spintex Road Branch of your Bank. Kofi Brokeman had overdrawn his account by GHS 800,0000 and the Head Office has been putting pressure on Serwaa Broni to ensure the position was regularised. In giving the advice, Serwaa Broni, the Branch Manager, assured Mr. Kumchacha that the price of the house was good and that if the customer bought it, she would get the Bank to lease it for the use by the Dzorwulu Branch Manager. Based on this assurance by the Branch Manager, Kwame Kumchacha invested GHS 2.0 million of his working capital in the purchase of the house. The payment was made directly into the bank account of Kofi Brokeman at the Spintex Road Branch. When Mr Kumchacha approached the Bank with an offer for a leasehold interest by the Bank in the property, the Bank said it did not need the property. The property has now become unsaleable due to the general economic hardships in the country, and Mr Kumchacha now has his working capital tied up. The letter from the law firm concluded that if the Bank did not respond in 10 days, they had their client’s instruction to sue the Bank for the negligent advice of Serwaa Broni. What are the legal issues for the Bank in this case? Is the Bank liable for Mr. Kumchacha’s losses? (20 Marks)

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BL – May 2013 – L1 – SA – Q13 – Law of Contract

This question tests the understanding of a statement made with a request for verification in contract law.

A statement made by a party to a contract but with a request to the other party to verify the truth of the statement is:

A. Binding on the other party
B. A term of the contract
C. Not a term of the contract
D. A condition of the contract
E. A misrepresentation

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BL – May 2018 – L1 – SB – Q1 – Sources of Nigerian Law

Discuss sources of Nigerian law, and misrepresentation in contract law.

a. The sources of Nigerian law are diverse, but all laws are interpreted by the courts.

Required:
(i) State the THREE types of Received English Law; (3 Marks)
(ii) State the parties to criminal proceedings and civil proceedings. (3 Marks)

b. A contract may possess all the elements of a valid agreement and still be unenforceable if such a contract is induced by a vitiating factor like misrepresentation.

Required:
(i) What is misrepresentation in contract? (2 Marks)
(ii) State TWO types of misrepresentation. (2 Marks)

c. Kofi bought a mobile phone from Adjua. Kofi later discovered that the phone was not functioning. Advise Kofi based on the following:
(i) When he was contemplating buying the phone, Adjua said it was in a perfect working condition, knowing this was untrue;
(ii) Adjua told Kofi that the mobile phone was in a perfect working condition, basing this comment on the users’ manual in the packet of the mobile phone;
(iii) Adjua is a GSM engineer but still told Kofi, who was relying on his expert advice, that the phone was in perfect condition. (6 Marks)

d. There are THREE conditions under which agency of necessity may arise.
Required:
State TWO of the conditions. (4 Marks)

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BL – Nov 2022 – L1 – SB – Q3c – Law of Contract

Explaining fundamental breach and the elements of misrepresentation.

Misrepresentation in a contract affects the validity of the contract.

Required:
i. Explain “fundamental breach” and its effect on a contract (4 Marks).
ii. State four elements of misrepresentation (4 Marks)

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BL – May 2015 – L1 – SB – Q5b – Contract Law

Define misrepresentation and state its effects on contracts.

A contract can be affected by vitiating factors, of which misrepresentation is an example.

Required:
i. What is misrepresentation? State any ONE type of misrepresentation. (2 Marks)
ii. State any TWO effects of misrepresentation on contracts. (2 Marks)

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BCL – Nov 2016 – L1 – Q3b – Contract Law

Explain the legal terms: Capacity, Acceptance, Misrepresentation, Goods, Quantum Meruit.

Explain the following terms as used in the legal business environment:
i) Capacity
ii) Acceptance
iii) Misrepresentation
iv) Goods
v) Quantum Meruit

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BCL – Mar 2024 – L1 – Q2b – Contract Law, Sale of goods/hire purchase

Evaluate whether Tinda Oil Ltd. can succeed in a court action against Azigipaa Ltd. based on the provisions of the Sale of Goods Act.

Azigipaa Ltd invited tenders for the purchase of a tanker, said to be lying off the Island Bebre, together with the oil it was said to contain. Tinda Oil Ltd submitted a tender for which Azigipaa Ltd accepted. Tinda Oil Ltd went through considerable trouble and expense to modify a ship that the company owned for salvage work, and also brought equipment and engaged a crew. There was no tanker anywhere near the Island as described by Azigipaa Ltd. Tinda Oil Ltd has decided to take action in court against Azigipaa Ltd.

Required:

i) In light of the provisions of the Sale of Goods Act, is Tinda Oil Ltd likely to succeed in its action? (5 marks)

ii) List TWO (2) fundamental obligations of a seller under the provisions of the Sale of Goods Act 1962, Act 137.

(4 marks)

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LRTB – APRIL 2024 – L2 – QB1 – Negligent Advice by Branch Manager Leading to Customer Loss

A customer sues the bank for losses from purchasing a property based on the branch manager's negligent advice, which was given to help regularize another customer's overdraft; discuss the legal issues and bank's liability.

Your customer, Kwame Kumchacha, is an importer of second-hand shoes from China. He is illiterate but has made a fortune out of the business which he has operated for several years. Kwame Kumchacha operates a Sole Proprietorship Account styled Kumchacha Enterprise. The account of the Sole Proprietorship is at the Spintex Road Branch of your Bank. Today, you received a letter from Ebito Chambers, a law firm, claiming they had been instructed by Kwame Kumchacha to sue your Bank for losses of GHS 2.5 million incurred by him following the negligent advice given to him by the Manager of your Spintex Road Branch, Serwaa Broni. The law firm explained that the Branch Manager advised Kwame Kumchacha to buy a house at Dzorwulu which was put up for sale by Kofi Brokeman, who also banked with the same Spintex Road Branch of your Bank. Kofi Brokeman had overdrawn his account by GHS 800,0000 and the Head Office has been putting pressure on Serwaa Broni to ensure the position was regularised. In giving the advice, Serwaa Broni, the Branch Manager, assured Mr. Kumchacha that the price of the house was good and that if the customer bought it, she would get the Bank to lease it for the use by the Dzorwulu Branch Manager. Based on this assurance by the Branch Manager, Kwame Kumchacha invested GHS 2.0 million of his working capital in the purchase of the house. The payment was made directly into the bank account of Kofi Brokeman at the Spintex Road Branch. When Mr Kumchacha approached the Bank with an offer for a leasehold interest by the Bank in the property, the Bank said it did not need the property. The property has now become unsaleable due to the general economic hardships in the country, and Mr Kumchacha now has his working capital tied up. The letter from the law firm concluded that if the Bank did not respond in 10 days, they had their client’s instruction to sue the Bank for the negligent advice of Serwaa Broni. What are the legal issues for the Bank in this case? Is the Bank liable for Mr. Kumchacha’s losses? (20 Marks)

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BL – May 2013 – L1 – SA – Q13 – Law of Contract

This question tests the understanding of a statement made with a request for verification in contract law.

A statement made by a party to a contract but with a request to the other party to verify the truth of the statement is:

A. Binding on the other party
B. A term of the contract
C. Not a term of the contract
D. A condition of the contract
E. A misrepresentation

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BL – May 2018 – L1 – SB – Q1 – Sources of Nigerian Law

Discuss sources of Nigerian law, and misrepresentation in contract law.

a. The sources of Nigerian law are diverse, but all laws are interpreted by the courts.

Required:
(i) State the THREE types of Received English Law; (3 Marks)
(ii) State the parties to criminal proceedings and civil proceedings. (3 Marks)

b. A contract may possess all the elements of a valid agreement and still be unenforceable if such a contract is induced by a vitiating factor like misrepresentation.

Required:
(i) What is misrepresentation in contract? (2 Marks)
(ii) State TWO types of misrepresentation. (2 Marks)

c. Kofi bought a mobile phone from Adjua. Kofi later discovered that the phone was not functioning. Advise Kofi based on the following:
(i) When he was contemplating buying the phone, Adjua said it was in a perfect working condition, knowing this was untrue;
(ii) Adjua told Kofi that the mobile phone was in a perfect working condition, basing this comment on the users’ manual in the packet of the mobile phone;
(iii) Adjua is a GSM engineer but still told Kofi, who was relying on his expert advice, that the phone was in perfect condition. (6 Marks)

d. There are THREE conditions under which agency of necessity may arise.
Required:
State TWO of the conditions. (4 Marks)

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BL – Nov 2022 – L1 – SB – Q3c – Law of Contract

Explaining fundamental breach and the elements of misrepresentation.

Misrepresentation in a contract affects the validity of the contract.

Required:
i. Explain “fundamental breach” and its effect on a contract (4 Marks).
ii. State four elements of misrepresentation (4 Marks)

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BL – May 2015 – L1 – SB – Q5b – Contract Law

Define misrepresentation and state its effects on contracts.

A contract can be affected by vitiating factors, of which misrepresentation is an example.

Required:
i. What is misrepresentation? State any ONE type of misrepresentation. (2 Marks)
ii. State any TWO effects of misrepresentation on contracts. (2 Marks)

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BCL – Nov 2016 – L1 – Q3b – Contract Law

Explain the legal terms: Capacity, Acceptance, Misrepresentation, Goods, Quantum Meruit.

Explain the following terms as used in the legal business environment:
i) Capacity
ii) Acceptance
iii) Misrepresentation
iv) Goods
v) Quantum Meruit

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You're reporting an error for "BCL – Nov 2016 – L1 – Q3b – Contract Law"

BCL – Mar 2024 – L1 – Q2b – Contract Law, Sale of goods/hire purchase

Evaluate whether Tinda Oil Ltd. can succeed in a court action against Azigipaa Ltd. based on the provisions of the Sale of Goods Act.

Azigipaa Ltd invited tenders for the purchase of a tanker, said to be lying off the Island Bebre, together with the oil it was said to contain. Tinda Oil Ltd submitted a tender for which Azigipaa Ltd accepted. Tinda Oil Ltd went through considerable trouble and expense to modify a ship that the company owned for salvage work, and also brought equipment and engaged a crew. There was no tanker anywhere near the Island as described by Azigipaa Ltd. Tinda Oil Ltd has decided to take action in court against Azigipaa Ltd.

Required:

i) In light of the provisions of the Sale of Goods Act, is Tinda Oil Ltd likely to succeed in its action? (5 marks)

ii) List TWO (2) fundamental obligations of a seller under the provisions of the Sale of Goods Act 1962, Act 137.

(4 marks)

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