Intermediate Term, Innominate Term - Law of Contract - Past Exam, Exams of Contract Law

Download Intermediate Term, Innominate Term - Law of Contract - Past Exam and more Exams Contract Law in PDF only on Docsity! S THE UNIVERSITY OF THE WEST INDIES EXAMINATIONS OF APRIL/MAY 2008 CODE AND NAME OF COURSE : LAW1410 - LAW OF CONTRACT I DATE AND TIME : DURATION : 2 HOURS INSTRUCTIONS TO CANDIDATES: This paper has 3 pages and 6 questions. Answer any THREE (3) Questions . Answers may be confined to the law of any jurisdiction in the Commonwealth Caribbean unless the context indicates otherwise. 1. Critically discuss the recent approach of not classifying a term as a condition or a warranty but as an "intermediate" or "innominate term". 2. "An agreement is not enforced by the courts unless the obligations created by it are sufficiently certain ." To what extent does this statement represent the law? 3. "In the law of contract certain principles are fundamental . One is that only a person who is a party to a contract can sue on it ." Critically analyse this statement. 4. Last year, Michelle ran into serious financial difficulties and was unable to pay Duncan $30,000 owed by Michelle to Duncan for goods which had been supplied by Duncan to Michelle . In order to avoid adverse criticism of her friend Michelle, Kim decided to pay the $30,000 to Duncan although she had no legal obligation to do so . Accordingly, Kim wrote to Duncan that "in order to maintain Michelle's reputation and to encourage you to do business with Michelle in the future" she will pay the $30,000. Duncan hurriedly accepted. Kim now refuses to pay . PLEASE TURN OVER The University of the West Indies Page 2 Last January also, Shane entered into a contract with Kyle under which Kyle was to supply Shane with 500,000 concrete blocks per month at a price of $200,000 for a period of two years . The contract further provided that, if Kyle failed to supply the concrete blocks in any month, Shane would be at liberty to treat the contract as terminated. In November last year, however, Kyle was unable to supply the concrete blocks because of an astronomical rise in the price of cement . In these circumstances, Shane offered to pay Kyle a lump sum of $20,000 "to offset the cost of producing the concrete blocks in any month that Kyle met the monthly target of 500,000 ." Kyle accepted this offer. Shane also promised Kyle that he would not enforce his right under the contract to terminate it. Kyle was able to meet the target in December and January but failed in February. Shane is now refusing to pay the lump sums for the months in which Kyle met the target and is claiming to terminate the contract immediately. Advise Duncan and Kyle. 5 . In June, Eddy takes his young son, Tony, to the local zoo for the fourth time that year . As they drive along the path heading to the entrance, there is a large sign on the left reading: "The Zoo accepts no liability whatsoever for any personal injury or other damage howsoever caused to our visitors ." Eddy has seen this sign before, but on this occasion he does not read it because Tony is pointing out to him a helicopter in the sky on the right. As the car enters the zoo's car park, Eddy presses a green button which lifts a bar at the entrance and, at the same time, ejects a ticket from a slot . Eddy places the ticket in his pocket without reading it. While touring the zoo, Tony gets too close to the chimpanzees' cage and is punched in the eye. Returning to the car to go and seek medical attention, they discover that all four car tyres have been slashed and the windshield broken by a zoo employee who is angry at his non-promotion . When he complains to the manager, Eddy is referred to the back of the ticket which states: "All cars are parked at the owner's risk. The Zoo is not liable for any damage to parked vehicles whether caused by the Zoo or its employees as a result of neglect, fundamental breach or otherwise ." Advise Eddy . PLEASE TURN OVER The University of the West Indies