1. If the lesser sum is paid in advance and the creditor accepts the same in full settlement
of the debt.
2. If the lesser sum is paid in the form of an object which the creditor accepts in settlement
b. He has acted in breach of the terms of the contract.
c. He has made a secret profit without disclosure.
Indemnity:It is the duty of the principal to compensate the agent for loss or liability
arising. However, the principal is only liable for loss o
the buyer that he holds the goods on his behalf.
6. If the seller is bound to transmit, the goods to the buyer, he must do so within the
stipulated time if any or within a reasonable time.
7. Delivery by common carrier is Prima Facie comple
May 2005, Question 3
a. There contract has 2 parties i.e. the buyer and the seller. The seller sells or agrees to
sell while the buyer buys or agrees to buy the g
more defective deliveries or the buyer refuses to take delivery or pay for one or more
installment whether such breach entitles the innocent party to treat the contract as
repudiated or is severable depends on the terms of the contract and the circumstanc
As a general rule, past consideration is not good to support a contractual claim as exemplified by
the decisions in Re McArdlescase and Roscorlar v. Thomas.
However, in certain circumstances, past consideration is suffici
In an agency relationship, the agent contracts on behalf of the principal. The principal is not
directly involved in the transaction. However the principal may sue or be sued on a contract
entered into by the agent. This exception is more apparent than re
December 2005, Question 5
DUTIES OF THE AGENT
Performance: The agent must perform his obligation if the agency is contractual. He is
not bound to perform if the agency is not cr
Nemo dat quod non habet
At Common Law,
public and legally constituted market. Before 1994, every shop in the city of London
was market Overt and all goods sold under defective title conferred good title to the
buyers provided the buyer took in good faith and the sale took place in public place
Remedies of the unpaid seller fall into 2 broad categories namely:
ANSWERS TO SAMPLE EXAMINATION QUESTIONS
INTRODUCTION TO LAW 442
These are remedies against the goods and are enforceable without any court act
sufficient consideration for a promise. In Stilk v. Myrik, the defendant who was a ship captain
entered into a contract with his crew members to assist him on a journey from Britain to the Baltic
Sea and back. In the course of the journey, 2 sailors deser
Certain matters need not be disclosed e.g.:
1. Provision and proposition of law
2. Unknown facts as was the case in Joel v. Law Unionand crown Insurance Company
3. Facts known by other party
4. Matters of public notoriety as was the case in Bates v. Hemit
Estoppel: - Under sec. 23(1) of the Act, a non-owner can pass a good title if the true
owners is by his conduct produced form denying the sellers authority to sell. This is
This principle means that when loss occurs, it is the duty of the insurer to restore the insured to
the position he was before the loss .The insurer must so far as money can do put the insured to
the position he was before the loss.Idemnity means that the
if he continued giving evidence which he did.
The defendant did not honour his promise and was sued. Question was whether the plaintiff had
provided consideration for the defendants promise to pay.
It was held that the promise was unenforceable as the pla
Under sec 52(1) of the act, if the seller wrongfully neglects or refuses to deliver specific goods,
the buyer may maintain an action for the decree of specific performance which the court may
grant of circumstances justify.
This is referred as the Rule in Pinnels Case (1602).
Cole owed Pinnel 8 pounds payable
November 1600. However on 1st
October 1600, Pinnel requested Cole to p
This rule means that the person to whom the promise is made provides consideration and by so
doing there is a bargain between the parties or mutuality.
By providing consideration, the promise becomes party to the transaction. In Thomas v. Thomas,
c) To bona fide purchase for value without notice.
d) He has possession of the goods with the owners consent.
Under Sec. 26(1) if the seller who has
goods but retains their possession or documents
5. Performance of the contract requires constant supervision.
6. The decree is likely to subject the defendant to severe or undue hardship.
7. The contract in question was obtained by unfair means.
circumstances under which money paid
which govern the
RULES OF CONSIDERATION
It was so held in Thomas v. Thomas.Mr. Thomas had expressly stated that if he died before his
iii. If the seller delivers the goods to a common Carrier for transmission to the buyer without
reserving the right of disposal.
iv. Payment for goods.
An unpaid seller is entitled to exercise a lieu on the buyers goods in his possession even if the
The seller action for price is an action for the liquidated sum.
Under sec 50(1) of the Act, if the buyer wrongfully neglects or refuses to take delivery of goods,
the seller may maintain an action against him in damages for
Ltd,2 principles have competed at Common Law. The first is Nemodat, that a person cannot
give a better title to the buyer than he has in the goods. The 2
is that a bona fide purchase for
value without notice acquires or good title.
The law has attempte
Special Agent: This is an agent where authority is restricted to the performance of a particular
act not being in the ordinary course of his business, trade or profession. Both types derive their
authority from the terms of appointment.
following. Ways:-i. Taking actual possession of the goods
ii. Giving notice of the sellers claim to the party in possession. Such notice may be given
to the person in possession pr his employer.
The seller right of stoppage i
The buyer is entitled to reject the goods delivered by the seller in certain circumstances without
incurring any liability. E.g.
a) If the quality delivered is greater or less than contracted OR
b) Where the goods discovered are mix
he promises to pay part of the amount due to each of the creditors who in turn promise mot
to sue the debtor or insist on full payment, the lesser sum paid by the debtor extinguishes
the entire debt.
The mutual promises by the parties constitute considera
Under the provisions of the Insurance (Motor Vehicles Third Party Risks) Act, Cap 405, victims
of motor vehicle accidents are entitled to compensation by Insurance companies for injuries
sustained from the use of motor vehicles on the road.
However the in