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

From the case study below,advise Maxwell.

Maxwell and Abdirazak entered into a contract in which Maxwell was to sell a lorry to Abdirazak for sh.1500,000.
Unknown to the parties, the lorry which had been parked at Shah’s garage had been burnt down that morning following a fire outbreak at the garage.
Abdirazak had paid Maxwell sh.300,000 as deposit.
He now intends to sue Maxwell for breach of contract.

Answers

Held
The problem is based on frustration of contract.
Destruction of the lorry frustrated the contract between Maxwell and Abdirazak.
Neither of them was blameworthy.
However, the deposit of sh.300,000 paid by Abdirazak is recoverable.
No cause of action for there was no breach of contract.
My advice is based on the provisions of the Law Reforms(frustrated contracts) Act 1943.
Under the Act,when a contract is frustrated,any money paid is recoverable and money payable ceases to be payable.

---

maurice.mutuku answered the question on December 30, 2016 at 14:55

Next: In which ways may a contract be discharged?
Previous: What are the duties of a principal towards an agent?

View More Law Questions and Answers | Return to Questions Index

Related Questions

• In which ways may a contract be discharged?(Solved)
  

  Explain several ways in which a contract may be discharged.

  Date posted: December 30, 2016.  Answers (1)

• Mwamburi advertised the sale of his farm. Ole Losusui asked how many cattle could be reared(Solved)
  

  Mwamburi advertised the sale of his farm.
  Ole Losusui asked how many cattle could be reared on that farm and Mwamburi replied, “I have not used the farm for cattle rearing but I think it could support 600 cattle.”
  Ole Losusui bought the farm immediately and purchased 600 cattle to rear on it.
  However, the farm is unable to accommodate the cattle.
  Ole Losusui is aggrieved and indents to sue Mwamburi for misrepresentation.
  Advise Mwamburi.
  

  Date posted: December 30, 2016.  Answers (1)

• What are Equitable remedies for breach of contract?(Solved)
  

  Explain the Equatable remedies for breach of contract.

  Date posted: December 30, 2016.  Answers (1)

• What are some of the contracts opposed to the public policy?(Solved)
  

  Explain in details the type of contracts opposed to the public policy.

  Date posted: December 30, 2016.  Answers (1)

• What are the disadvantages of delegated legislation?(Solved)
  

  Explain the disadvantages of delegated legislation.

  Date posted: December 30, 2016.  Answers (1)

• What are the essentials of a valid contract?(Solved)
  

  What are the essentials of a valid contract?

  Date posted: December 30, 2016.  Answers (1)