1 SUGGESTED ANSWERS FOR PAST YEAR QUESTIONS Chapter 2 : Contract Act
2 JUN 2018 QUESTION 1 a) According to section 2(h) of the Contract Act 1950, contract is an agreement enforceable by law. Describe FIVE (5) elements of contract and support your answer with relevant section. (15 Marks) ANSWER: i. Offer Section 2 (a ) CA 1950 – Explanation ii. Acceptance Section 2 (b) CA 1950- Explanation iii. Consideration Section 2 (d) CA 1950– Explanation OR Section 26 CA 1950 – general rule agreement without the consideration is void and need not be adequate. iv. Intention to create legal relationship In domestic arrangements there is a presumption against the existence of an intention to create legal relationship whilst in commercial arrangements the rebuttable presumption is that legal relationship is intended. v. Capacity Section 11 CA 1950 – Explanation vi. Certainty Section 30 CA 1950- Explanation Key Note:: Intention do NOT have any section based on Contract Act 1950
3 b) Section 10 of the contract Act 1950 provides that all agreement are contracted if they are made by free consent of parties. By virtue of Section 14, consent is said to be free when it is not caused by some elements. Thus, illustrate FOUR (4) elements which caused a consent not to be free. (10 Marks) ANSWER: a) Coercion Section 15 CA 1950 – its explanation based on CA 1950 b) Undue Influence Section 16 (1) CA 1950 – its explanation based on CA 1950 c) Fraud Section 17 CA 1950 – its explanation based on CA 1950 d) Misrepresentation Section 18 CA 1950 - its explanation based on CA 1950 Key Note:: Mistake (Section 21 CA 1950) will cause the contract become VOID NOT VOIDABLE
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