Download Types of Implied Terms - Law of Contract - Past Exam and more Exams Contract Law in PDF only on Docsity!
THE UNIVERSITY OF THE WEST INDIES
EXAMINATIONS OF APRIL/MAY 2005
CODE AND NAME OF COURSE: LA12B (LAW1410) - LAW OF CONTRACT I
DATE AND TIME: DURATION: 2 HOURS
INSTRUCTIONS TO CANDIDATES: This paper has 3 pagesand6 questions.
Answer THREE (3) questions. Answers may be confined to the law of any jurisdiction in the
Commonwealth Caribbean unless the context indicates otherwise.
1. No third party should be able to sue on a contract to which she is not a party.
Discuss.
2. Critically analyse the different types of implied terms.
3. āFor a contract to be enforceable, the parties must have agreed on all material terms and {the
contract] must not be too vague in any significant particular ...ā
Critically examine this statement.
4. Rad and Andre are keen fans of the National Basketball Association (NBA) competition played in
the United States of America, During a recent holiday to Chicago, Rad purchased the shorts wom
by the famous basketball player Michael Jordan in his last game for the Chicago Bulls team in the
NBA competition. Upon his retum to Erehwon he wrote a letter to Andre offering to sell him the
shorts for $3000. Andre received the letter on 27 February 2005. Andre, who thought Jordan was
the best basketball player ever, decided to buy the shorts and wrote back to Rad accepting his offer.
He posted this letter on the morning of 28 February 2005.
PLEASE TURN OVER
The University of the West Indies
Page 2
A few hours after Andre posted his letter accepting Radās offer, Andreās friend Sasha, a dealer in
Michael Jordan memorabilia, telephoned Andre and offered to sell him the shoes that Jordan had
worn in his last game for the Chicago Bulls for a price of $4,000. Andre did not have enough
money to buy the shoes, although he preferred the shoes to the shorts that he had agreed to buy
from Rad. Sasha asked Andre to think it over, and get back to her quickly if he wanted to buy the
shoes.
The next day, 1 March 2005, Andre telephoned Rad to tell him that he did not want to buy the
shorts. He also told Rad to ignore the letter of acceptance that he had posted the previous day.
Andre then posted a letter to Sasha accepting her offer to sell him the shoes. Andre then went to
his local newsagency and purchased a āscratchieā instant lottery ticket. Within minutes of
purchasing the ticket, he discovered that he had won $10,000. He was delighted because he could
now afford to buy both the shorts from Rad and the shoes from Sasha. He went home and
immediately telephoned Rad to tell him that he was, after all, accepting the offer Rad had made in
the letter of 27 February 2005.
On 3 March 2005, Rad received the letter Andre had posted to him on 28 February 2005. Also on
that day, Sasha telephoned Andre to tell him that she would not sell him the shoes.
On 4 March 2005 Rad telephoned Andre and told him that he would not sell the shorts to him.
Later that day Sasha received Andreās letter to her posted on 1 March 2005.
Advise Andre.
5. Adam had a contract to decorate Billās restaurant. He subcontracted to Colin the plastering work
needed to be done before he could begin to decorate. Billās grand opening had been advertised for
the 4" of December and Bill had told Adam that if the work was not completed by then, Adam
would receive only halfofhis fee. Adam had known that the decorating would take him four days.
He had made it a term ofhis agreement with Colin that the plastering must be completed by the 29*
of November. On the 25" of November Colin had informed Adam that he would not be able to
complete the plastering on time because he had been delayed by damp weather slowing the drying
time of the plaster. However, he had also told Adam that if Adam would pay an extra $500, he
would work extra hard from then on and complete on time. Adam reluctantly agreed. All the work
was completed on time.
(a) Advise Adam whether he is bound to pay Colin the extra $500;
(b) Would it make any difference if, on the 25Ā° of November, Colin had not only promised to
work extra hard but also to hire some special industrial heaters to dry out the plaster more
quickly?
PLEASE TURN OVER
The University of the West Indies