Contract Law I Question Paper
Contract Law I
Course:Contract Law 1
Institution: Jomo Kenyatta University Of Agriculture And Technology question papers
Exam Year:2012
INSTRUCTIONS:ANSWER QUESTION ONE AND ANY OTHER TWO QUESTIONS
QUESTION ONE
On Monday, Steve wrote to Becky offering to sell to Becky his collection of wall; hangings for
ksh.50,000/= only “provided I receive your acceptance by registered post before 12 noon on Friday
next”. Becky received the letter on Tuesday morning and immediately replied by registered post in the
following terms:
“ Thank you for your offer which interests me greatly, though your price seems rather high. Would you
accept the sum of Ksh. 30,000?”
Steve received this letter on Wednesday morning but did not reply. On Thursday, Becky having heard
nothing further, wrote to Steve by registered post saying: “ I have now reconsidered the position and
accepted your offer at Kshs. 50,000/=”. Owing to fire at a postal office, this letter was destroyed and
therefore never reached Steve. On the same day i.e. Thursday, Steve sold his collection to Tracy for Kshs.
60,000/=.
At 11 a.m on Friday, Becky telephoned Steve and as soon as Steve answered the telephone, Becky told
him that she had already accepted the offer to sell for kshs. 50,000/=. Steve replied that she was
too late as he had already sold his collection to Tracy.
Advise Becky (30 marks)
QUESTION TWO (20 MARKS)
(a) Discuss “offer” distinguishing it from “invitation to treat”. (5 marks)
(b) Job Company Limited a manufacturer of beauty creams sold a quantity of the product packed in tubes of various sizes to a salon in Karen shopping centre. Wamani a customer bought one tube from the salon, but unfortunately when she used it, she developed unsightly swellings which required treatment by a dermatologist at a cost of Kshs. 10,000/=. The tube had been delivered together with a document entitled “ manufacturer’s guarantee” which guaranteed the quality of the cream and stated that the manufacturer would compensate any consumer who was adversely affected by the use of the cream up to a maximum of Ksh. 20,000/=.
(i) Discuss whether Wamani can recover compensation under the guarantee. (10 marks)
(ii) Discuss which party she should seek such compensation from and why. (5 marks)
QUESTION THREE (20 MARKS)
“…where it is alleged that a contract exists on the basis of an act, followed by a promise, the courts will not enforce such a promise….” In such cases, the consideration is described as “past”.
JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
FIRST YEAR FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELORS OF LAWS
LSC 2104: CONTRACT LAW 1
DATE: AUGUST 2012
TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
QUESTION FOUR (20 MARKS)
Critically discuss the view that intention to enter into contractual relations is an essential requirement for a valid contract.
QUESTION FIVE (20 MARKS)
Critically but briefly, discuss the following:
(a) Simple contracts (4 marks)
(b) Written contracts (4marks)
(c) Equitable estoppel (4 marks)
(d) Privity of contract (4marks)
(e) Capacity to create contracts (4 marks)
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