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Contract I Y1s1 2010 Question Paper
Contract I Y1s1 2010
Course:Bachelor Of Laws
Institution: Kabarak University question papers
Exam Year:2010
COURSE CODE: KLAW 103
COURSE TITLE: CONTRACT I
INSTRUCTIONS:
• ANSWER QUESTION ONE AND ANY OTHER TWO QEUSTIONS
• MARKS MAY BE LOST FOR ILLEGIBILITY
• EXAMPLES & CASES WILL EARN ADDED MARKS
1. (a). Shah wrote to Kimutai on 10th March 2008 asking him to indicate whether he would
be willing to sell his plot in Westlands and if so to fax him the lowest price he would
accept. Kimutai faxed on 12th March 2008 indicating that the lowest price was Kshs.
30,000,000/=. On 13th March, 2008 Shah wrote back asking “I accept to buy your plot
at the Kshs. 30,000,000/= indicated by you as the price you will accept”. Kimutai
faxed him the same day asking whether he would be willing to increase the price to
Kshs. 35,000,000/=. Shah faxed him on 14th March 2008 saying “I accept to buy your
plot for Kshs. 35,000,000/= asked by you”. Kimutai does not respond and proceeds to
sell the plot to Patel for Kshs. 40,000,000/=. Shah files a suit against Kimutai seeking
damages for breach of contract. You are the Judge before whom the matter is brought.
Explain how you would decide the case giving reasons for your decision and
supporting the same with decided cases. (15 Marks)
(b). With reference to decided cases discuss how an offer may be terminated.
(10Marks)
(c). Courts are very reluctant to effect exemption clauses in contracts unless the
clauses meet judicial controls which have been developed by Courts.
Explain those Judicial Controls and Support your answer with decided cases.
(5 Marks)
(TOTAL MARKS 30)
2. “……….. Infact it is notoriously difficulty to prove intention since there is no
objective evidence which may be produced as conclusive proof. If every party
seeking a legal remedy under a contract were put to the burden of establishing that
both parties positively intended legal consequences to their agreement, it would be
major stumbling block to the formation of valid contracts. For this reason the law has
had to accept a much more restricted test of intention” Anonymous.
Discuss the tests used by Courts to determine whether the parties to an agreement
intended to enter into a legally binding contract or not and support your answer with
decided Cases. (20 Marks)
3. Critically, discuss “Consideration” as an essential ingredient of an enforceable
contract and support your answer with examples and decided Cases.
(20 Marks)
4. Write brief notes on the following supporting your answers with Cases and Examples
(a). Distinction between offer ad invitation to treat (10 Marks)
(b). Distinction between conditions and warranties in a contract
(10 Marks)
(TOTAL MARKS 20)
5. (a). The statements made by the parties during negotiations culminating in a
contract may be classified as either terms or mere representations. Discuss the
importance of the distinction and the tests used by the Courts in distinguishing
terms from mere representations supporting your answer with Examples and
decided Cases. (10 Marks)
(b). Critically discuss the rule that acceptance to be effective must be communicated
to the offeror bringing out exceptions thereto and support your answer with
decided Cases. (10 Marks)
(TOTAL MARKS 20)
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