- 20 Marks
BCL – L1 – Q21 – Privity of Contract
Question
(a). Explain the term ‘Privity of Contract’
(b). Femi, aged fifteen (15), completed Secondary School and has approached you with a request to supply your company with building materials including cement and iron rods. The request was from a business enterprise known to your company, PrimeBuild Ltd., which was owned by Femi’s mother, and the request was signed by his mother. A line in the said letter read as follows: ‘You can negotiate the terms of the supply with bearer’.
Required:
Whether or not your company, represented by you, can negotiate with the bearer.
(c). Femi, aged fifteen (15), completed Secondary School and has approached you with a request to supply your company with building materials including cement and iron rods. The request was from a business enterprise known to your company, PrimeBuild Ltd., which was owned by Femi’s mother, and the request was signed by his mother. A line in the said letter read as follows: ‘You can negotiate the terms of the supply with bearer’.
Required:
The rights of the company, in the event of failing to supply the building materials to your company.
Answer
(a). Privity of contract can be defined as a general rule, only a person who is a party to a contract has enforceable rights or obligations under it.
(b). Candidate shall identify the question to comprise of law of agency (the relationship that exists between two persons, an agent and a principal) and law of contract.
Explain the relationship between Femi and the mother (Agent & Principal).
Explain capacity to contract by indicating that the agent needs to have contractual capacity.
Candidate to indicate that Femi has no capacity to act as an agent since he is a minor
(c). Suppose the company entered into the agreement with Femi, there exist remedies for breach of contract which include but not limited to Action for damages and Sue for specific performance.
- Tags: Breach of Contract, Contract Law, Damages, Remedies, Specific Performance
- Level: Level 1
- Topic: Contract Law
- Uploader: Samuel Duah