Question 1:
On the 10th of March 2009 Moot enterprise Ltd posted an offer to sell 1,000 set of encyclopedias to the Ministry of Education for price of Rs 1,000,000 and that the offer would remain authentic up to 31st of June 2009. On the 20th of March 2009, Mr Luck the Permanent Secretary of the Ministry phoned Moot Enterprise Ltd and asked whether he would be allowed three (3) months credit. The manager of Moot enterprise Ltd replied that payment must be made cash on delivery. On the 25th of June Moot enterprise Ltd sold the consignment to a private school. On the 30th of June 2009 Mr Luck wrote to Moot enterprise Ltd and accepted the offer. The letter was received by Moot enterprise Ltd on the 1st of July 2009 and the manager instantly phoned Mr Luck and informed him that the sets of encyclopedias had been sold and similar encyclopedias weren’t accessible. Advice the parties as to whether or not a contract has been created.
Question 2:
Your Ministry has retained the services of High Tech Company Limited for laboratory installation in a newly constructed hospital. One of situations of the contract is that materials must be of European standard and origin. Throughout the process of installation, some materials weren’t accessible and High Tech Company ltd decided on its own to buy from an alternative origin. Your ministry feels frustrated and has stopped payments for work in progress. Preliminary negotiations have failed. Discuss and describe the essence of Arbitration as a substitute to litigations.
Question 3:
The Fisheries department has decided to purchase a second hand boat for patrol at sea and has agreed with Pro Naval Ltd for latter to supply the department with the existing patrol boat against payment of Rs 500,000. How the contract would be influenced in following circumstances:
(a) The boat was completely unseaworthy.
(b) If the boat has been destroyed by fire ten minutes before the contract was made.
(c) The boat wasn’t a speed boat and was not meant for patrol due to poor engine capacity.
Question 4:
(a) Describe the ways and circumstances in which contractual liability might be discharged.
(b) “Any breach of contract always allows the injured party to sue for damages” explain.