Commerce WASSCE (PC 2ND), 2022

Question 4

 

Ibrahim of Lagos offered to sell second hand car parts to Adams in Freetown. Adams agreed on the arrangement. Before the delivery date, there was a ban on the importation of second hand car parts in Sierra Leone and Adams cancelled the deal. Ibrahim decided to sue Adams for breach of contract.

 

  1. State and explain one reason Ibrahim would not succeed in his action.
  2. State two other ways this agreement could have been brought to an end.
  3. Explain four terms of sale that would have been agreed upon by Ibrahim and Adams


Observation


Candidates who attempted the question did not do well. They could not interpret the question may be because it is an applied one.

The expected responses to the question include:


(a) The reason Ibrahim would not succeed in his suit is that the ban on the importation of second-hand car parts is a frustration to the contract. A contract that is frustrated by law is not enforceable.

 

(b) Other ways in which the agreement between Ibrahim and Adams could have ended.

 

  1. Where Ibrahim and Adams fully execute their part of the contract.
  2. When Ibrahim or Adams refuses to perform their parts of the contract.
  3. Where both parties agree to bring the contract to an end.
  4. The contract could have ended if the time agreed for the execution of the contract expired.
  5. Death or insanity of either Ibrahim or Adams could have ended the contract.
  6. When a party to the contract becomes bankrupt, the contract would be ended     since he cannot perform his part of the contract.

 (c)     Terms of sale that would have been agreed upon by Ibrahim and                              Adams

i.        The two parties would have agreed on the prices of the products to be traded.

 

ii.       The two parties would have agreed on the quality of the product especially where there are variants.

 

iii.      The parties would agree as to when the payment would be made.

 

iv.      The parties would have agreed as to when and where the goods will be delivered and who would be responsible.

 

v.       The parties would have agreed on the type of package to be used.

 

vi.      The parties would have agreed on the payment period.

 

vii.     The parties would have agreed on the items of law such as what would happen if the goods were defective or delayed.

 

viii.     The parties would have agreed as to when and how the contract would be considered breached.