Get premium membership and access revision papers, questions with answers as well as video lessons.

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: 17/12/2010

INSTRUCTIONS:
1. Answer Question 1 and any other 2 Questions
2. Cases and Examples will attract more Marks
3. Marks will be lost for illegibility

1.(a). A entered into a contract with Mediterranean Shipping Company to build a ship for them.
The purchase price was Kshs. 300,000,000/= while the ship was under construction, the
shilling was devalued. A insisted and demanded that unless Mediterranean pays 10%
more, they would not complete the work in time. The shipping Company had already
entered into a contract with 3rd party to lease the ship. They agreed to additional 10%.
A completed the ship and delivered in time. Mediterranean paid. After 8 months they
went to Court to recover 10% saying it was secured by economic duress. The case is
before you.
Make a reasonable judgment supporting it with decided cases. (10 Marks)
(b). Mr. Nyangumi, son to Mr. Nyawara forged his father’s signature and borrowed money
from National Bank. After it was discovered, the Bank threatened to sue him for forgery.
The Father gave the Bank some promissory Notes to pay and he mortgaged his Land to
the bank for this purpose. Later Mr. Nyawara went to Court claiming the contract was
voidable as it was secured under undue influence. Mr. Nyawara was a customer of
National Bank.
Discuss the chances of him succeeding to avoid the contract. (10 Marks)
(c). “For the purpose of the Torts of deceit and misrepresentation it is necessary to establish a
material misrepresentation intended to influence and which did infact influence the mind
of the representee and on which the representee reasonably relied upon”. Lightman J.
Possfund –vs- Diamond (1996) 2All Er 774 at P 786.
Critically analyse the above requirement of misrepresentation and proceed to explain
when non disclosure (silence) can amount to a misrepresentation. (10 Marks)
(TOTAL MARKS 30)

2.(a). Onyango entered into a contract with Mogaka for the sale of assorted second hand spares
to be shipped from Dubai Aboard. “M.V Nyayo express”. Unknown to both of them there
were 2 ships of that name leaving Dubai, one in January and the other in April.
There is now a dispute as to whether there was a contract between them at all and which
ship they were referring to.
Briefly discuss the case and support your discussion with Decided Cases. (10 Marks)
Page 3 of 3
(b). Briefly explain the following in regard to mistakes made in regard to documents.
(i). Non Est Factum (5 Marks)
(ii). Rectification (5 Marks)
(TOTAL MARKS 20)

3.(a). “The theory of frustration belongs to the law of contract and it is represented by a rule
which the courts will apply in certain limited circumstances for the purpose of deciding
that contractual obligations, ex facie binding, are no longer binding on the parties”
Lord Radcliffe in Davis contractors –vs- Foreham UDC (1956) AC 696.
Briefly discuss the operation of the theory and in your discussion explain the
consequences and possible ways of the way forward and rights of the parties thereto.
(10 Marks)
(b). At common law, a contract which is illegal will be unenforceable, a contract tainted with
illegality may be wholly or partially unenforceable.
Discuss what kind of contracts can be classified as illegal contracts giving examples and
cases. (10 Marks)

4.(a). One of the Lawful reasons for restraint of trade is to protect legitimate interests of the
employee. The courts have said that there must be a difference between trade secrets and
personal skills acquired during employment.
Proceed now to explain how this requirement of protection of legitimate interest is
applied by the Courts. (10 Marks)
(b). Chirchir employed Onyancha as a cutter in a tailoring department in the town of Nakuru.
The restraint clause prohibited Onyancha from engaging in any activity in tailoring
within an area of 20 Km of Nakuru for life.
Explain whether this clause is lawful or not and give reasons for your opinion.
(10 Marks)
(TOTAL MARKS 20)

5. Explain and make brief notes on the following:-
(a). Remoteness of Damages. (10 Marks)
(b). Discharge of contract by performance. (10 Marks)

Contract Ii Question Paper

More Question Papers

Popular Exams