NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF LAW
MARCH/APRIL 2014 EXAMINATION

COURSE CODE: LAW331

COURSE TITLE: COMMERCIAL TRANSACTIONS I

TIME ALLOWED: 3 HOURS

INSTRUCTION: Answer Question 1 and any other three (3) questions

1. Peter wishes to buy a new lap top computer. Advise him in the following circumstances:

• On Monday 1 December, he writes a letter to David, who is an independent retailer selling computers. The letter asks David if he stocks the Aver 330 model laptop and, if so, whether David can deliver it by 20 December.

• David replies  that he does stock the Aver 330 model and includes an invoice with the   reply and a letter stating that because of the Christmas holidays he will not be able to  deliver the laptop until 12 January

     Peter then telephones David at 5.30 on 5 December but the telephone is not answered.

      He immediately sends an email to David stating that he would like to purchase the Aver 330 Model and that delivery on 12 January is acceptable but ,if it could be delivered at an earlier date ,it would be very much appreciated.  The email is read by Susan, David’s secretary ,at 9.00 am the following day. She prints off the email and puts it in her in –tray to give to David when he arrives at the office.

Peter meanwhile, discovers that he can purchase the Aver 330 model at a cheaper    price from another supplier.·He telephones David on 6 December to tell  David that he (Peter) no longer wants to purchase the laptop.

David, who has just been given the printed email by Susan says, that as far as he is concerned , there is a contract between him and Peter and that he will be delivering the laptop on 12 January as agreed.

2. a)  Balogun was works with Economy Bank of Africa. He was recently posted to Ghana as the Operation Manager with the newly opened branch in Accra Ghana. During his stay in Ghana his wife Betty fell ill, he could not come down to visit her because of the tight schedule. Few months after he came to Nigeria for a short leave, he asked her to join him in Ghana and promised to give her a monthly allowance of N250, 000 if she would join him in Ghana. She followed him to Ghana and after the initial payment of N250,000 for the first 2 months, he stopped the payment of the promised monthly allowance of N250,000. Advice the parties.

b)                  Distinguish between conditions and warranties.

3.       Amaka and Bode have recently bought and moved into a new house together and have purchased a number of items with which they are not satisfied.

1.     Explain to Amaka and Bode why the law implies terms into certain contracts of sale of goods.
2.     Advise Amaka and Bode on their legal position in the following situations:-

1. The landlord association of apartment they just moved into informed them that it was the custom in that area that they pay N30,000 to the Association before they connect electricity from the main PCHN pole into their apartment.

2.  Bode agreed to buy a Honda “2009 Model” Car from the Chucks under a hire-purchase agreement which provided, inter alia, “no condition or warranty that the vehicle is roadworthy or as to its usage, condition or fitness for any purpose is given by the owner or implied herein”. The car was left in the defendant’s premises one night and on inspection the defendant found that it was badly damaged. The cylinder head was off, all the valves were burnt out, two pistons were broken and it was incapable of propulsion. Bode has refused to accept delivery of it.

4.             State the meaning of these Latin phrases, giving examples of their application

                a.             Qui per alium facit per seipsam facere videtur (8.5 marks)

                b.             Nemo potest facere per alium, quod per se non potest (9 marks)

5.        Discuss the Doctrine of Irrevocable Authority in relation to termination   of Agency agreement.  (17.5 Marks)

6.             State the facts of Pinnel’s case, pointing out the rule propounded in the case and exceptions thereto. (17.5 marks)