NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF LAW
JUNE/JULY 2013 EXAMINATION

COURSE CODE: LAW 234

COURSE TITLE: LAW OF CONTRACT 2

TIME ALLOWED: 3 Hours

INSTRUCTION: Answer any 5  questions. All questions carry equal marks

1. Define any 3 of the following terms with the aid of decided cases.

i. Substantial Performance.

ii. Standard of Performance.

iii. Specific performance.

iv. Divisible contract.

v. Quasi contract.

2a. With the help of decided cases explain the term Discharge by Frustration.

b.When can a contract be discharged by frustration?

c.What are the effects when a contract is discharged by frustration.

3. What in Law amounts to misrepresentation? With the help of illustrations describe the categories of misrepresentation. Refer to the relevant cases.

4. What is the ratio in the case of Esso Petroleum V. Mardon. Discuss briefly any exceptions there-to.

5. Musthapher agrees to sell Ibiaye the fuel (AGO) on a vessel (The Stardust) still at sea and expected to birth on the 22nd Dec. 2013. Unknown to Ibiaye the Stardust has already birthed and has already been off loaded.

However Mustapher has another vessel of about the same capacity, the Sandhurst still at sea the contents of which he hopes to sell to Ibiaye. The sale is slated for 2pm on the 23rd Dec. 2013. Both parties have agreed orally and Ibiaye promises to transfer money as soon as the vessel is inspected and state of the product confirmed.

5a. Is there a valid contract based on the above facts?

5b. If Mustapher goes on to further sell the products on the SANDHURST to Kemi who pays him cash as soon as the ship has birthed. If Kemi paid after Ibiaye's money had gotten to Mustaphers account has there been a breach of contract? If so what are the possible remedies in law?

6a. What do you understand by the term duress?

b.  Sangote group of companies floods the market with 200g packet sugar @N=50 per packet. The normal price of sugar prior to this was N=150per 200gpacket. Others are now forced to sell at this price or risk their stock being abandoned. In view of these facts answer the following questions:

(i). Can this be described as economic duress, explain with the aid of decided cases.

(ii). What remedy, if any, is available at law to the aggrieved?

7. What remedies are available to the aggrieved party in case of breach of contract?

8. Enumerate different ways in which a breach of contract may occur? Describe any 2 of them with the help of decided cases and or statutes.

9. Describe in detail different categories of damage.