QUESTIONS 1

The intentions to create legal relation is a sine qua non for the formation of
contracts. Discuss

QUESTIONS 2
ABC Co, who manufacture oil rigs, wrote to Takoradi Ltd, an oil company,
offering to construct an oil rig for GH₵1,000,000. The offer was made on a
form containing ABC’s agreed contract price and provided that the contract
price may be varied according to the cost and availability of materials. Takoradi
Ltd replied in letter containing their standard term of business stating that they
wish to offer the rig. These terms did not include a prices variation, clause but
contained a statement that the order was not varied unless confirmed by return
post. ABC duly confirmed by a letter dated June 4 which was delayed in the
post as it bore the wrong address and did not arrive until 16. Meanwhile, on
June 12, Takoradi Ltd posted a letter to ABC cancelling the order which arrived
on 15 June. ABC ignored this letter and pressed on with the construction of the
rig. It was completed one year later at a price of GH₵2,000,000. Takoradi Ltd
refuses to take delivery. Advice Takoradi Ltd.

QUESTION 3
In Beswick v Beswick [1968] AC 58 the House of Lords affirmed that the
plaintiff respondent qua administratrix could obtain an order for specific
performance to enforce a contractual provision for her personal benefit, but
would have failed had she brought the action in her own name. To what extent
is this decision applicable in Ghana.

QUESTION 4
(a)With reference to relevant authorities discuss the following;
i. Parole Evidence Rule
ii. Collateral Contracts
iii. Doctrine of Non-Est Factum
iv. Conditions, Warranties and innominate Terms
v. Sanctity of Contract
vi. Promissory Estoppel
vii. Past consideration
 viii. Doctrine Fundamental Breach and the modified version (the
rule in George Mitchell (Chester Hall) ltd v Finney Lock
Seeds [ 1983]2 A. C 803

SECTION B
COMPULSORY, ANSWER ALL QUESTIONS (5 & 6)

QUESTION 5
(a) ‘Consideration need not be adequate but must be sufficient.’
Discuss

(b) Dirk, returns to his car after work find out that someone has syphoned off
the petrol. He informs Eva, a passing police officer, who says, ‘’don't worry, I
will get the person who did this’’. Dirk replies, ‘’Thank you, if you do, I will
pay you £100’’. Fiona overhears this conversation and offers to go and get some
petrol for Dirk. Dirk gives Fiona a can and £10 to pay for the petrol. When
Fiona returns Dirk says ‘’Thank you for your trouble. I do not have any more
money with me but I want to give you £20 for getting the petrol’’ Eva caught
the thief but Dirk now refuses to pay Eva or Fiona anything.
Advise Eva and Fiona.

QUESTION 6
With relevant authorities discuss how the Court resolve issues of interpretation
about exclusion clauses in contracts.

TUTORIAL QUESTIONS
1. Discuss the various modifications the Contract Act has given to Consideration under
the common law.

2. Discuss how the court will categorise the terms of the parties that are not expressly
stated or written in their codified agreement, with reference to relevant authorities.
3. Mensah & Co were owners of a warf and jetty on the river Densu, Asiamah was the
owner of the steamship “Woorcock”. It was agreed between them that the ship should
be discharged and loaded at Mensah & Co’s jetty, hire being paid for the use of cranes
and other facilities on the wharf. Both parties knew that the ship would settle on the
riverbed at low water. While the ship was lying there, the tide ebbed and the ship
came to rest on a ridge of hard ground beneath the mud and sustained damage. The
owner of the vessel sued for damages for breach of a term of their contract, though
not express that the owners of the wharf did not take reasonable steps to ensure the
safety of the ship. With reference to relevant authorities, Advice Asiamah whether
he is entitled to damages for breach of contract.

4. With reference to relevant legal authorities indicate Ghana’s laws of

Capacity to Contract.

5. Mensah bought a house in his own name for his son and daughter in law
to live in. He allowed them to live in the house and promised that if the
couple would pay off the rest of the instalments due on the house the
house would become their property. The couple stayed on and paid the
instalments until the father died., whereupon his administrators sought to
revoke the offer and eject the couple from the house. With reference to
relevant legal authorities’ advice the couple whether they are entitled to
the house.

6. Discuss four ways an offer can be validly be terminated with reference to

relevant authorities.

7. Distinguish between the legal implications of the following;

i. Counter offer and inquiry

ii. Acceptance of offer and Standing Offers

8. How is the challenge in differences in standard forms exchanged by the

parties resolved.

9. On 1 November, Albatross plc sent a letter to Budgie Ltd, with whom they had
been negotiating, offering them a contract to service all Albatross’s birdseed
processors each month for the next five years at a cost of £10,000 per annum.
The letter said that Budgie should reply by return of post. Unfortunately, the
letter contained an error in the address and was not delivered to Budgie until 6
November. Budgie replied at once accepting. This letter was posted at 11 am on
6 November. In the meantime, on 4 November, Albatross had received an offer
from Canary Ltd to do the servicing work for £9,000 per annum. Albatross,
 having heard nothing from Budgie, telephoned Canary on 5’ November and
offered them the contract at £8,000. Canary accepted. Albatross sent a fax to
Budgie on 6 November telling them that the offer of 1 November was
withdrawn. This fax was received on Budgie’s fax machine at 10.45 am on 6
November, but not read by anyone until 5 pm on the same day. Advise
Albatross, Budgie and Canary.

10. Adele and Bella are sisters. On 1st February Adele meets her sister for a drink
and tells her she is looking for a new spot car. Bella replies that she wants to
sell her Ferrari as there is now a better model available and that she is happy to
sell it to her sister “on a business basis”. Bella says she wants about $100,00
for it. That evening Adele sends an email to Bella saying “I accept your offer to
sell the car for $100,000 and will transfer the money in a few days. On 3rd
February, Bella sends Adele an email that says “don’t be stupid I wouldn’t sell
the car for that, I want $125,000 for it”. To avoid any misunderstanding do not
email me again unless you do not want the car at this price. Adele was so
annoyed on reading the first sentence of Bella’s email that she deleted it
without reading further and did not reply. Three weeks later Bella rang Adele
and demanded $125,000, offering to deliver the car.
Advise Adele.

11. Roger has a food catering business and has agreed with Dawn, the manager at
Nippers Nursery, to supply lunch for the nursery children for a period of one
calendar year. He is to be paid $2,000 per month, a price that reflects providing
a main course and dessert for each child daily. Unfortunately, due to increased
electricity cost, Roger finds himself in financial difficulty. He says to Dawn
“unless you increase my monthly fee to $2,500, I will not be supplying deserts
as part of the lunchtime meal for the children. Dawn is disappointed as Roger’s
dessert are far healthier than the dessert of his competitors. She believes that a
more healthier options will result in positive reviews of the nursery and thereby
increase her funding from the government. She agrees to the price rise.

Roger buys his food supplies from Amy. However, his recent financial
problems have made it difficult for him to pay Amy and is he $3,000 in dept.
Amy is in love with Roger and says to him “don’t worry, just pay me $500 and
we can forget about the rest. “Roger pays the $500. He is delighted and he
books ticket for him and his new girlfriend, Kate, to go away on holiday
together.
 Both Amy and Dawn hear about Roger’s impending holiday with Kate. Dawn
refuses to pay him the extra monthly fee and Amy demands the full repayment
of the debt.

Advise Roger.

12. To what extent does the law provide sufficient protection for those who enter
into a contract with a person who, through age, mental illness or intoxication,
may be said to lack the capacity to make a binding agreement?