Contract Ii Question Paper
Contract Ii
Course:Bachelor Of Laws (Llb)
Institution: Kabarak University question papers
Exam Year:2010
KABARAK UNIVERSITY
UNIVERSITY EXAMINATIONS
2010/2011 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF LAWS
COURSE CODE: KLAW 108
COURSE TITLE: CONTRACT II
STREAM: Y1S2
DAY: FRIDAY
TIME: 2.00 – 4.00 P.M.
DATE: 25/03/2011
INSTRUCTIONS:
1. Answer question 1 and any other two questions.
2. Cases and examples will attract more marks.
3. Marks will be lost for illegibility.
1. (a). A was a vendor of certain land which he sold to B. During their negotiations, B told him
that he wanted to use the Land for raring sheep and ask how many sheep the Land can
take. A told him that it would support 1,000 sheep. A had never used Land for sheep
raring and B knew this. Later it was found that the land can take only 700 sheep. Now B
has gone to Court claiming there was misrepresentation from A and he wants to vitiate
the contract.
Briefly EXPLAIN whether he can succeed giving reasons for your decision.
(7 Marks)
(b). “The doctrine of economic duress has been said to be operational when consent was
induced by pressure on the innocent party and the consent will be treated in law as
revocable as it is illegitimate and has not been approbated either expressly or by
implication after the illegitimate pressure has ceased to operate on the mind of innocent
party.” Justice Nyamwamu Nairobi Commercial Court Civil Case No. 20 of 2010.
Basing your argument on the above Judgment, briefly explain the doctrine of economic
duress and what the Plaintiff is required to proof in order to sustain claim.
(7 Marks)
(c). Nyaguku decided to go into a Catholic Convent as a nun after serving as Catholic
Catechist for a long time. She discussed with the presiding father in her diocese and
transferred her property to the church. 10 years later, she was tired with that kind of life
seclusion and left the Convent. She brought an action to claim back her property after six
years after leaving the convent alleging undue influence.
Can she succeed? (8 Marks)
(d). Nyalgunga Company Limited was formed to do construction of roads generally and to be
engaged in any activities incidental to and which will assist it to achieve its main
objectives.
The Company got a lucrative contract of manufacturing and selling Railway accessories
which build and repair railways. They sold accessories worth 10 Million to a railway
Building Company and the Company has refused to pay them.
Can they succeed against them taking into consideration capacity to contract?
(8 Marks)
(TOTL MARKS 30)
2. (a). Special legal rules have been developed with regard to the liability of minors, in the law
of contract, not with intention of restricting their rights, to enter into contracts, but with
the intention of protecting them from their own inexperience. Also those rules protects
adults who deal with minors in a fair and reasonable manner.
Page 3 of 4
Briefly analyse these rules bringing out clearly when a minor can or can not be bound in
a contract. (10 Marks)
(b). “If one party, in performing a contract does an act prohibited by statute, the act only may
be illegal or the whole contract may be illegal. It depends on whether the statute was
intended to prohibit the whole contract from being performed or the manner in which it
was performed”. Justice Blackburn NKU HCCC No. 20 of 2000.
Taking into account the above statement briefly ANAYLSE how a statute can affect the
legality of a contract supporting your answer with decided cases and examples.
(10 Marks)
(TOTAL MARKS 20)
3. (a). Obwaka is a technical drawing clerk in the office of Nyamoita and Associates Architects.
With years, he was promoted to be an engineer in design in the office. In his agreement,
there was a restraint of trade clause prohibiting him not to engage in a similar activity for
10 years if he left the employment. He left and was employed by another engineering
design company. He was sued by his former employer for breach of the RTC in the
contract.
Briefly explain whether the employer can sustain a claim against him bringing out clearly
what the Court considers in such contracts. (10 Marks)
(b). Unilateral mistake is made by one party and the other party does not know it, usually the
mistake is made because of some fraud or misrepresentation the Court has to ask itself
whether the mistake is to the identity, some attributes to the person or it was a face-toface
transaction.
Briefly ANALYSE how unilateral mistakes affects a contract taking into consideration
the above Court considerations. (10 Marks)
(TOTAL MARKS 20)
4. (a). “A ton does not mean about a ton, or a yard about a yard. Still less when you descend to
minute measurements does half an inch mean about half an inc. if a seller wants a margin
he must, and in my experience, does, stipulate for it … No doubt there may be
microscopic deviations which businessmen and therefore lawyers will ignore … but apart
from this consideration the right view is that the conditions of a contract must be strictly
performed in order for a party to be discharged by performance” Lord Atuin in Arcos
Limited vs Ranaasen (1933).
Briefly explain the doctrine of performance as one way of discharge in contract and give
exceptions thereto if any. (10 Marks)
Page 4 of 4
(b). A contracted B, a shipping Company to ship his goods from Southampton U.K to
Mombasa Kenya. The route was not specified but the normal route is through Somalia, in
Somali waters. Because of piracy, they were advised to go through Cape of Good Hope,
South Africa (longer route). B claimed frustration of the contract and demanded to be
paid more and if not they was not going to deliver the goods. (They were advised before
commencing their journey from London). A has sued them for breach of contract.
Briefly explain whether they can sustain the defence of frustration and thereafter proceed
to give limits to the doctrine of frustration if any. (20 Marks)
5. Write brief but conscience NOTES about the following.
(a). Remoteness of damages in contract. (7 Marks)
(b). Effects of frustration in contract. (6 Marks)
(c). Specific performance in contract. (7 Marks)
(TOTAL MARKS 20)
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