Contract Law – Page 3

BCL – L1 – Q36 – Agency

Advise on liability in a case involving a minor assisting with software installation without a formal contract.

Question

Peter, a 17-year-old undergraduate, had his attachment training at Harmony Rural Bank. The internship coincided with the acquisition and installation of the TechSoft software, and Peter worked alongside the IT team to install the software.
Upon completion of his internship, he returned to college but solicited online for customers for TechSoft Solutions, the software service providers. They occasionally paid him some allowance and, in some instances, Peter assisted the new customers to install the TechSoft software for which he received additional fees that were not made known to the service provider.
Prosperity Rural Bank purchased and installed the TechSoft software with Peter’s assistance but is very unsatisfied with the service as the solution failed to meet their expectations. They threaten court action against TechSoft Solutions for breach of contractual obligations and seek consequential damages. There is no formal contract between Prosperity Rural Bank and Peter, and the service providers are denying liability and claim Peter is a minor who lacked capacity to have entered into a formal agreement with TechSoft software solutions.

(a) You are the only professional in Prosperity Rural Bank, and the Managing Director has come to you seeking to pick your legal brain on this.

(b) Explain the significance of contracts under seal.

Answer

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Tags: Contract Law, Contract under Seal, Formal Contract
Level: Level 1

Topic: Contract Law

BCL – L1 – Q35 – Agency

Describe the rights and obligations of principal and agent.

Question

(a) Describe the rights and obligations of principal and agent.

(b) On what bases will termination of an agency relationship occur?

(i) General agent,

(ii) Special agent, and

(iii) Agency by necessity

Answer

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Tags: Agency, Agency by Necessity, Contract Law, General Agent, Special Agent
Level: Level 1

Topic: Agency

BCL – L1 – Q29 – Damages

Explain the rules for awarding damages in contract law.

Question

(a). What are the rules relating to the award of damages?

(b). Identify four (4) equitable remedies.

(c). Describe the terms Undue Influence, Unconscionability, Duress.

Answer

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Tags: Contract Law, Equitable Remedies, Injunction, Specific Performance
Level: Level 1

Topic: Contract Law

BCL – L1 – Q25 – Tort

Explain the significance of tort law and its differences from contractual obligations.

Question

What is the significance of tort law, and how does it differ from contractual obligations?

Answer

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Tags: Civil Wrongs, Compensation, Contract Law, Legal Liability, Tort
Level: Level 1

Topic: Tort

BCL – L1 – Q24 – Nature of Transaction

Describe the nature of a promotional offer transaction in two ways.

Question

Nexis Company Limited had for weeks advertised their products in the electronic and print media that “Buy GH $450 worth of products from any of our branches and get one blender free”. The deadline for the promotion was 30 November 2020. Fiifi saw the advertisement and bought products worth GH $600 from one of the branches on 1 October 2020. Fiifi demanded the free blender. However, the salesgirl told him there was no free blender to be given in that branch. An argument then ensued.

Required:

(a). Describe in TWO (2) ways the nature of the transaction.

(b). Determine whether Fiifi should be entitled to the blender.

Answer

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Tags: Breach, Contract Enforcement, Contract Law, Public Offer, Remedies
Level: Level 1

Topic: Contract Law

BCL – L1 – Q23 – Breach of Contract

Determine if a defective tractor hire constitutes a breach of condition or warranty.

Question

Akosua Mensah, a businesswoman, who had a contract to supply timber logs to Asante Timber Co. Ltd, hired a tractor from Mavis Boateng, at a rate of GH $1,000.00 a day to enable her to haul the timber logs from her timber concession in Asankrangwa. Under the agreement, Akosua Mensah paid a deposit of GH $10,000.00. It is the case of Akosua Mensah that Mavis Boateng assured her that her tractor was in good condition and could haul at least 30 logs a day.

Akosua Mensah, however, found the tractor to be defective almost from the beginning, with the tractor hauling a maximum of seven (7) logs a day, and a total of 60 logs during a period of a little over one month. Akosua Mensah brought an action for damages for breach of contract. The Court awarded Akosua Mensah special damages of GH $20,000.00 on the basis of total failure of consideration.

Required:

(a). Explain whether in the circumstance of the case, there was either a breach of condition of the contract or a breach of warranty.

Explain in THREE (3) ways whether the court was justified in the award of GH $20,000.00 to Akosua Mensah for the failure of consideration.

Answer

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Tags: Contract Law, Damages, Failure of Consideration, Part Performance, Remedies
Level: Level 1

Topic: Contract Law

BCL – L1 – Q22 – Legal Terms

Explain legal terms: Capacity, Acceptance, Misrepresentation, Goods, and Quantum Meruit in business law.

Question

Explain the following terms as used in the legal business environment:

(a) Capacity

(b) Acceptance

(d) Goods

(e) Quantum Meruit

Answer

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Tags: Acceptance, Capacity, Contract Law, Goods, Misrepresentation, Quantum Meruit, Sale of Goods
Level: Level 1

Topic: Sale of Goods

BCL – L1 – Q21 – Privity of Contract

Explain the term 'Privity of Contract' in the context of contractual rights and obligations.

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

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Tags: Breach of Contract, Contract Law, Damages, Remedies, Specific Performance
Level: Level 1

Topic: Contract Law

BCL – L1 – Q18 – Contract Law

State four ways a lawfully entered contract can be discharged.

Question

State FOUR means by which a contract, lawfully entered by parties, may be discharged.

Answer

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Tags: Breach, Contract Law, Discharge of Contract, Performance
Level: Level 1

Topic: Contract Law

BCL – L1 – Q17 – Contract Law

List four modifications to the common law doctrine of consideration under the Contracts Act, 1960.

Question

The Contracts Act, 1960, Act 25, has modified the common law doctrine of consideration. List FOUR of the modifications.

Answer

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Tags: Consideration, Contract Law, Contracts Act, Modifications
Level: Level 1

Topic: Contract Law

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BCL – L1 – Q36 – Agency

Advise on liability in a case involving a minor assisting with software installation without a formal contract.

BCL – L1 – Q35 – Agency

Describe the rights and obligations of principal and agent.

BCL – L1 – Q29 – Damages

Explain the rules for awarding damages in contract law.

BCL – L1 – Q25 – Tort

Explain the significance of tort law and its differences from contractual obligations.

BCL – L1 – Q24 – Nature of Transaction

Describe the nature of a promotional offer transaction in two ways.

BCL – L1 – Q23 – Breach of Contract

Determine if a defective tractor hire constitutes a breach of condition or warranty.

BCL – L1 – Q22 – Legal Terms

Explain legal terms: Capacity, Acceptance, Misrepresentation, Goods, and Quantum Meruit in business law.

BCL – L1 – Q21 – Privity of Contract

Explain the term 'Privity of Contract' in the context of contractual rights and obligations.

BCL – L1 – Q18 – Contract Law

State four ways a lawfully entered contract can be discharged.

BCL – L1 – Q17 – Contract Law

List four modifications to the common law doctrine of consideration under the Contracts Act, 1960.

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Advise on liability in a case involving a minor assisting with software installation without a formal contract.

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Describe the rights and obligations of principal and agent.

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Explain the rules for awarding damages in contract law.

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Explain the significance of tort law and its differences from contractual obligations.

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Determine if a defective tractor hire constitutes a breach of condition or warranty.

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Explain legal terms: Capacity, Acceptance, Misrepresentation, Goods, and Quantum Meruit in business law.

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