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Cls 104:Law Of Contract 1 Question Paper
Cls 104:Law Of Contract 1
Course:Bachelor Of Laws
Institution: Catholic University Of Eastern Africa question papers
Exam Year:2011
DATE: July 2011.
DURATION: 2 Hours.
INSTRUCTIONS:Answer Question ONE and any other TWO Questions.
SECTION A:COMPULSORY QUESTION.
Q1.On Monday Zachary places an advertisement in the Morning Gazette, a national newspaper.It reads: "For sale PS3 Games console - regular price Kshs.50,000 - on sale for Kshs.30,000 to be paid in full by cheque - first person to provide the cheque to receive the Games Console".The advertisement reffered readers to Zachary''s website for further details,the details describe the Games Console and set out Zachary''s address.On Tuesday Yvette telephones Zachary and tells him, "Ksh.30,000 is too much, would you prepare to accept Kshs.25,000 in cash?" Zachary replies ''I had been hoping for more'' and before she can hear ''but I accept your proposal'' the lines go dead and Zachary is unable to establish any further contact.Yvette posts a letter to Zachary in which she encloses a cheque for Kshs.25,000.Due to a postal strike,the letter is not delivered until Saturday.
Also on Tuesday,Xavier posts a letter to Zachary in which he encloses a cheque for Ksh.30,000 and provides Zachary with an address for the delivery of the Games Console.Due to the postal strike, Xavier''s letter is not delivered until Saturday.On Wednesday, during office hours, Wanda sends Zachary a fax, the fax states ,"I agree to pay your asking price".Unfortunately, her handwriting is illegible and Zachary is unable to decipher the fax.On Thursday Zachary is concerned that he has not sold the Games Console.He meets Ursula at a local shop.When she learns he still has the Games Console, she asks him if he would accept Kshs.20,000 for it.Zachary states he guesses he has to now.Ursula arranges to pick up the Games Console from Zachary on Saturday and to bring Kshs.20,000 in cash.
When Ursula goes to pick up the games console, Zachary has received the letters from Xavier and Yvette.He refuses to give the Games Console to Ursula stating "it is all off now".Advise Zachary.(30 marks)
SECTION B:
Q2.The Nakuru District decides to computerize the system by which it taxes local businesses.Barrie the town clerk, speaks to a number of local computer specialists, but is most impressed by Datachip.He receives their term and conditions by fax.Unfortunately the fax is unreadable.
Nevertheless,Barrie signs the reply slip and posts it back.The slip is lost in the post office.The terms and conditions contain the following clauses:
1.This contract contains no terms implied by law.
2.Any losses for which Datachip are liable will be limited to Kshs.300,000.
3.No responsibility will be taken for any injury or damage due to the negligence of Datachip, its employee or agents.
Crispin installs the system on behalf of Datachip.Unfortunately,the software is unable to cope with the demands of the District and charges only half the local businesses the relevant tax.This leaves the District with a deficit of Kshs.150,000,plus a fine of Kshs.100,000 from central government for overspending.Barrie calls Crispin in to fix the Computer,but he is unable to solve the problem.In frustration,Crispin hits the computer which promptly explodes,badly injuring Barrie and wrecking the office,causing damage of Kshs.150,000.
Advise Nakuru District.(20 marks)
Q3.Joseph and Sophie are married to each other.They agree that Joseph will make all the mortgage payment on the marital home and that sophie will pay all other household bills.This arrangement carries on for two years where upon Joseph refuses to make any more mortgage payments.Can Sophie sue Joseph?(20 marks)
Q4. a).How does Promissory Estoppel differ from Common Law Estoppel.(5 marks)
b).Maureen purchases a sofa and two armchairs from Norbert''s furniture Emporium as a gift to her son oscar.The cost of the furniture is Kshs.40,000 ;20,000 is to be paid immediately with the balance of Kshs.20,000 to be paid within 30 days of delivery.
Maureen arranges for the furniture to be delivered to Oscar.The furniture is delivered but is of poor quality and requires substancial repairs.Advise oscar.
To what extent if any, would your advise differ in the event of each of the following occurrences.
a).Maureen has told the manager at Nobert''s furniture Emporium that the furniture was a gift for Oscar.
b)Maureen had not paid the balance of Kshs.20,000?(10 marks)
Q5.How can the supplier know whether the minor in Iyash vs Inman already has enough waist coats? Is the law perhaps being overprotective here?Discuss(20 marks)
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