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Klaw 103: Contract I Question Paper
Klaw 103: Contract I
Course:Bachelor Of Laws
Institution: Kabarak University question papers
Exam Year:2010
COURSE CODE: KLAW 103
COURSE TITLE: CONTRACT I
STREAM: Y1S1
INSTRUCTIONS:
1. Answer Question 1 and any Other 2 Questions
2. Cases & Candid Examples will attract more Marks
3. Illegibility will lead to lose of Marks
4. Time allowed: 2 Hours
1.(a). On 20th January, 2010Nakuru Electronics Limited placed the following notice on the
window of their shop. “2 very nice Laptops – Kshs. 50,000/= each” Nyamoita and
Chepkurui are very keen to acquire the Laptops, but think that the price is too high. They
each offer Kshs. 30,000/=. Nakuru Electronics Limited refuse to sell at that price but says
they can accept Kshs. 40,000/= for each Laptop. Further the company said that it will
keep the offer to them open until 30th January, 2010 12 O’clock, if each pays it Kshs.
20,000/=, which they did. On 28th January, 2010, they have to leave for London for other
business but before they leave, each posts a letter stating that they agreed to buy the
Laptops at the agreed price of Kshs. 40,000/= each .Nyamoita’s letter arrives at 10:00
a.m. on 30th January, 2010. Chepkurui’s letter arrives on 1st February, 2010. In any event
Nakuru electronics Limited had already sold both Laptops to Nyawira on 29th January,
2010 for a total of Kshs. 100,000/=.
Analyse the above situation from the point of contract Law emphasizing particular on the
offer and acceptance. In particular advise the parties as to their liabilities and the potential
remedies available to them under contract Law. Support your analysis with decided cases
and candid examples. (15 Marks)
(b). Critically discuss the meaning of an offer taking care to distinguish an offer from a mere
puff and from invitations to treat. (7 Marks)
(c). Briefly explain the ways in which an offer can be terminated or brought to an end.
(8 Marks)
(TOTAL MARKS 30)
2.(a). Discuss the various presumptions that the Courts have developed to aid them in
determining the intentions of the parties to a contract, citing relevant authorities.
(15 Marks)
(b). Owen, Nyagaka and Chirchir are brothers. They always contribute money and buy Wingo
Charity Sweepstake Tickets but make entries in the name of Nyagaka in order to increase
chances of winning. They were lucky last month and they won I Million shillings. Now
Nyagaka has refused to share claiming that this was a family agreement and there was no
intention to create legal relations.
DECIDE. (5 Marks)
3.(a). Critically discuss the meaning of consideration and indicate its role in the process of
formation of contracts. Support your answer with examples and decided cases.
(10 Marks)
(b). In the course of drafting their agreements, parties quite properly seek to define their
obligations. This includes clause which say they will not be liable for certain losses or
their liability will be limited. Courts are very reluctant to enforce these clauses unless
they meet judicial controls which have been set by courts. Briefly, explain these judicial
controls and support your answer with decided cases. (10 Marks)
(TOTAL MARKS 20)
4.(a). The statement made by the parties during negotiations culminating into a contract
may be classified as either terms or mere representations.
Discuss the importance of the distinction and the tests used by courts in distinguishing
terms from mere representations. (10 Marks)
(b). Briefly explain the classification of terms of a contract according to their seriousness or
lack of it and support your answer with decided cases. (10 Marks)
(TOTAL MARKS 20)
5. Discuss the following.
(a). The principal that consideration need not to be adequate but that it must be sufficient.
(10 Marks)
(b). The rule that acceptance must be unconditional and must be communicated to the offeror.
(10 Marks)
(TOTAL MARKS 20)
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