All contracts are agreement but all agreement is not contracts

A contract is a legally binding agreement or relationship that exists

between two or more parties to do or abstain from performing certain
acts. A contract can also be defined as a legally binding exchange of
promises between two or more parties that the law will enforce. For a
contract to be formed an offer made must backed by acceptance of which
there must be consideration. Both parties involved must intend to create
legal relation on a lawful matter which must be entered into freely and
should be possible to perform.
An agreement is a form of cross reference between different parties,
which may be written, oral and lies upon the honor of the parties for its
fulfillment rather than being in any way enforceable.
All contracts are agreement because there must be mutual understanding
between two parties for a contract to be formed. All parties should agree
and adhere to the terms and conditions of an offer.
The following cases illustrate ways in which all contracts are agreements;
In the case of invitation to treat, where an invitation to treat is merely an
invitation to make an offer. When a firm's offer is accepted it results into a
contract provided other elements of contracts are accepted.
Considering person A buying a radio on hire purchase from person B who
deals with electronics and its appliances. Both parties must come to an
agreement on payment of monthly installment within specified period of
time. Such an agreement result to specialty contract which a contract
under seal.
Agreement: Every promise and every set of promises, forming the
consideration for each other, is an agreement." Thus it is clear from this
definition that a 'promise' is an agreement. What is a 'promise'? The
answer to this question is which defines the term." When the person to
whom the proposal is made signifies his assent thereto the proposal is
said to be accepted. A proposal, when accepted, becomes a promise."
An agreement, therefore, comes into existence only when one party
makes a proposal or offer to the other party and that other party signifies
his assent (i.e., gives his acceptance) thereto. In short, an agreement is
the sum total of 'offer' and 'acceptance'.
On analyzing the above definition the following characteristics of an
agreement become evident:
(a) At least two persons. There must be two or more persons to make an
agreement because one person cannot inter into an agreement with
himself.

(b) Consensus-ad-idem. Both the parties to an agreement must agree

about the subject matter of the agreement in the same sense and at the
same time.
Legal Obligation: As stated above, an agreement to become a contract
must give rise to a legal obligation i.e., a duty enforceable by law. If an
agreement is incapable of creating a duty enforceable by law. It is not a
contract. Thus an agreement is a wider term than a contract. All
contracts are agreements but all agreements are not contracts,"
Agreements of moral, religious or social nature e.g., a promise to lunch
together at a friend's house or to take a walk together are not contracts
because they are not likely to create a duty enforceable by law for the
simple reason that the parties never intended that they should be
attended by legal consequences.
Essential Elements of a Valid Contract
A contract has been defined as "an agreement enforceable by law." To be
enforceable by law, an agreement must possess the essential elements of
a valid contract. According all agreements are contracts if they are made
by the free consent of the parties, competent to contract, for a lawful
consideration, with a lawful object, are not expressly declared by the Act
to be void, and where necessary, satisfy the requirements of any law as to
writing or attention or registration.
The essential elements of a valid contract are as follows:
1. Offer and acceptance: There must a 'lawful offer' and a 'lawful
acceptance' of the offer, thus resulting in an agreement. The adjective
'lawful' implies that the offer and acceptance must satisfy the
requirements of the contract act in relation thereto.
2. Intention to create legal relations: There must be an intention among
the parties that the agreement should be attached by legal consequences
and create legal obligations.
Agreements of a social or domestic nature do not contemplate legal
relations, and as such they do not give rise to a contract. An agreement to
dine at a friend's house in not an agreement intended to create legal
relations and therefore is not a contract. Agreements between husband
and wife also lack the intention to create legal relationship and thus do
not result in contracts.
3. Lawful consideration: The third essential element of a valid contract is
the presence of 'consideration'. Consideration has been defined as the
price paid by one party for the promise of the other. An agreement is
legally enforceable only when each of the parties to it gives something
and gets something. The something given or obtained is the price for the
promise and is called 'consideration' subject to certain exceptions;
gratuitous promises are not enforceable at law.

The 'consideration' may be an act (doing something) or forbearance (not

doing something) or a promise to do or not to do something. It may be
past, present or future. But only those considerations are valid which are
'lawful'. The consideration is 'lawful'. unless it is forbidden by law; or is of
such a nature that, if permitted it would defeat The provisions of any law;
or is fraudulent; or involves or implies injury to the person or property of
another; or is immoral; or is opposed to public policy
4. Capacity of parties: The parties to an agreement must be competent to
contract. But the question that arises now is that what parties are
competent and what are not. The contracting parties must be of the age
of majority and of sound mind and must not be disqualified by any law to
which they are subject. If any of the parties to the agreement suffers from
minority, lunacy, idiocy, drunkenness etc. The agreement is not
enforceable at law, except in some special cases e.g., in the case of
necessaries supplied to a minor or lunatic, the supplier of goods is entitled
to be reimbursed from their estate.
Free consent: Free consent of all the parties to an agreement is another
essential element. This concept has two aspects.
(1) Consent should be made and
(2) it should be free of any pressure or misunderstanding. 'Consent'
means that the parties must have agreed upon the same thing in the
same sense
5. Lawful object: For the formation of a valid contract it is also necessary
that the parties to an agreement must agree for a lawful object. The
object for which the agreement has been entered into ------must not be
fraudulent or illegal or immoral or opposed to public policy or must not
imply injury to the person or the other of the reasons mentioned above
the agreement is void. Thus, when a landlord knowingly lets a house to a
prostitute to carry on prostitution, he cannot recover the rent through a
court of law or a contract for committing a murder is a void contract and
unenforceable by law.
6. Certainty: Section 29 of the contract Act provides that Agreements, the
meaning of which is not certain or capable of being made certain, are
void." In order to give rise to a valid contract the terms of the agreement
must not be vague or uncertain. It must be possible to ascertain the
meaning of the agreement, for otherwise, it cannot be enforced
Illustration. A, agrees to sell B a hundred ton of oil" there is nothing
whatever to show what kind of oil was intended. The agreement is void for
uncertainly. "An agreement to do an act impossible in itself is void". If the
act is impossible in itself, physically or legally, the agreement cannot be
enforced at law. Illustration. A agrees with B, to discover treasure by
magic. The agreement is not enforceable.

What is law, explain three qualities of law

It has proved a herculean task to arrive at one definition of law that will
win universal approval, even among legal gurus or luminaries. Early
writers like Plato, Aristotle, Aquinas, Hobbes, Locke, etc gave varying
definitions of the term law, but arrived at one conclusion of the general
purpose of law which they agreed is ensuring of orderliness to all human
activity. For purpose of our study, we may refer to law as a system of
regularized and institutionalized procedures supported by government for
orderly decision of social questions and settlement of disputes which
apply to a particular group of people in a given territorial area.
Law to a lay man may be define as rules and regulations that guide
human behaviour, the breach of a state or community may be frown upon
and which such a state or community can enforce.
According to Professor Elias the law of a given community is the body of
rules which are recognize as obligatory by its member.
Every society primitive or civilized, every group, class or organization of
individual and indeed every family and every person tend to conduct their
affair in or live accordance with a set of rule and regulations therefore it is
hereby provided that law as related to human actions may be defined as a
set of rules and regulations, set down by a state for the guidance of the
activities of the people in a geographical entity the conformity to which is
ensured by the sanction
Law are rules and regulations, but there are other rules and regulations
which might not necessarily be law, the rules and regulations must be
attached with SANCTION, which vary in accordance with the type of law in
focus. From the fore goings, we can discern three qualities of law they
are:
That the rules or patterns of behaviour must be recognized by the
majority of people in the community what it means is that for the rules
and regulations to become a law in geographical area or entity such rules
must be recognized by most of the people in such community that is by
the majority.
That they must be rules which the community demands that each of its
member should observed. What this means is that in a community since
not every rules and regulations are envisaged by law, for rules and
regulations to be enforced by law the community should let people know
which and what behaviour they are expected of and how to conduct
themselves not to breach the law.
That the non-observer of the rules must lead to the means that anyone
that fails to follow the rules been lay down by the community the
sanctions should be impose on such person.

The basis of all contract is consensus ad idem discuss

To start with what a contract is. A contract can simply be defined as a
legal agreement between two or more competent parties.
Consensus and idem is the coming together of two minds with a common
intention.
The contract must involve two parties and both the parties should have
the intention to make the contract binding. One mind cannot do it alone
that is there must be an offer which is accepted.
Since consensus in a literary sense means a general agreement which
means that for a promise, relationship, expressions and act to be legally
binding or enforcement at law there must be coming together of two
parties that is two minds with a common intention that is to make the
contract binding.
To discuss in length one party cannot made a contract to be enforce
through in case of unilateral contract which initially involve one party, but
one can see that the contract has not complete and that is why the
liability of the other arises later for instance, in case of sales promotion
contracts.
In conclusion, as English man said or as an adage says that united we
stand divided we fall no contract shall be made without consideration
from one party to the other which brings about the coming together of
two minds.
DIFFRENTIATE BETWEEN OFFER AND INVITATION TO TREAT
For a contract to exist there must be an offer which must be accepted by
the other party. The person who makes the offer is known as offeror. And
the person, to whom it is addressed for acceptance is known as the
offeree.
An offer is a promise by the offeror to bind him if the offeree also agree to
be bound. Also offer is a definite statement of intention by one party,
called the offeror concerning the term under which
he (offeror) will
contract with the party to whom it is made called offeree.
Offer may be made in many ways and form: it may be by telephone,
letter, telegram etc.
However, an offer is different from invitation to treat. Invitation to treat is
a request for an offer so, therefore no one can accept an invitation to treat
therefore invitation to treat is a prerequisite to offer. What you do is not an
acceptance but invitation to treat or invitation to offer

Display of goods in shop

Notice of auction sales
Request for tenders
Issuing of advertisement and trade catalogues
Moreover, invitation to treat or invitation to bargain is a contract law term.
It comes from Latin phrase invitation and offerendum and mean inviting
an offer
Andrew Burrows said and I quote that an invitation to treat is an
expression of willingness to negotiate. A person making an invitation to
treat does not intend to be and as soon as it is accepted by the person to
whom the statement is addressed. In Harvey v. Facey and also in the case
of Gibson v Manchester city council.
EXPLAIN IN DETAILS, HOW AN OFFER MAY BE TERMINATED
To start with what an offer means. An offer is a promise made by the
offeror to bind himself of the offeree also agrees to be bound.
An offer may be terminated in many ways. The life of an offer may be
brought to an end in any of the following ways
* Revocation; This occurs when the offeror himself with draws or cancels
the offer see Byrne V. Van Tenhoven.
* Rejection this happens when the offeree reject the offer directly, or
indirectly, when the offeree makes a counter offer for instance, if an offer
to sell an item for #500, is made to X and X says he accept it but for
#400, that is not an acceptance but a counter offer that must be accepted
by the original offeror. Hyde V. Wrench
* Lapse of time- When an offer is made to be accept within the stipulated
or else it will be deemed terminated at the end of the specified time.
*Death- Death of both the offeror and the offeree can terminate the offer.
But where the offeror is dead, the offeree must be notified of the fact of
the offer ors death. But where the offer does not require personal service,
the personal representative of the offeree can accept the offer
*Unfulfilled conditions- where a condition prescribed by the offer is not
met, and then the offer is terminated. See financings Ltd. V. Stimson
In conclusion, an offer may also be regarded as being rejected of a new
condition is introduced to the offer by the offeree while accepting it e. g
where the offeree says I accept it but you must deliver the goods to me
yourself. See sulaiman V. Mehr
Explain how an infant can be involved in valid and binding
contract

Every person of full legal capacity can enter into a contract to determine
whether or not a person has contractual capacity depends on the status of
the person in relation to the law. This is so as there are some persons
whose capacities to form contracts are regulated or even restricted
sometimes by the law. Thus, such persons have limited capacity to
contract, such person include, a minor (or an infant), lunatics, married
women is some jurisdictions, in corporate companies and others.
However, valid contract by a minor (or infant) may either be contract for
Necessaries or Beneficial contract of service.
Necessaries - Necessaries are things which are essential to the infants
continuous existence and general welfare. Necessaries has been defined
by section 2 of the infant Relief Act 1874 as goods suitable to the
condition in life of such an infant or minor or other persons and to his
actual requirements at the time of sale and delivery. Thus, to qualify as
contract for necessaries, the contract must have the following attributes .
*The goods supplied must be suitable to his status in life.
Definition valid contract are contract containing all elements of a valid
contract these contract are binding on all the parties involve.
* They must be for his consumption or real use.
*They must not be ornaments or luxuries. In peters V. Fleming where an
ornamental watch was supplied to a child, the court held that the watch
was not a necessary, thus the court voided the contract.
*The contract must not be for business purposes where the contract is for
example to supply goods to the minor for the purpose of selling and
making profit, such a contract is not for necessaries. In Mercantile union
guarantee corporation V. Ball, give purchase contract with a 20years old
child was held to fall short of contract for necessaries.ied at the time
*There must be no evidence that the child had enough of thee type of
goods supplied at the time of the contract if for example Kanabra age 18
at the time she asked Jemila to supply her with 10 skirt, the contract will
not fall under contract for necessaries see Nash V. In man, where goods
including fancy waist coats were supplied to an infant, the court held that
since there was an evidence that the child had move than enough of the
waist coat at the time of the supply, the contract was invalid.
Lastly, necessaries are those goods (or services) without which an infant
may not reasonably exist.
A CONTRACT MUST SATISFY CERTAIN BASIC REQUIREMENT IN
ORDER TO BE ENFORCEABLE AT LAW
A contract must satisfy certain basic requirements in order4 to be
enforceable at law. These requirements are

Offer
Acceptance
Consideration
Intention to create legal relation
Legal capacity of the parties
*Offer An offer is a promise made by the offeror to bind himself if the
offeree also agrees to be bound. An offer may be specific or general.
Specific offer is an offer addressed to a clearly identified person or group
while General offer is to the one addressed to the general public e. g
Advertising of rewards for a finder of a lost item. See carlili V. Carbolic
smoke Ball.
*Acceptance-For an agreement to arise, the offeree must accept the offer
furnished to him either in writing, verbally or though his conduct. An
acceptance occurs when the party to whom an offer is made agrees
without attaching any condition to the offer ors proposal.
*Consideration- consideration is necessary to the validity of every simple
contract. The court in Curre V. Misa defined consideration as consisting of
either some right, interest, profit, or benefit accruing to one party, or
some forbearance, detriment loss or responsibility given, suffered, or
under-taken by the other, consideration is either executor or executed.
*Intention to create legal relations- for a contract to be valid the parties
must intend that their relationship could give rise to legal proceedings of a
breach occurs. Intention to create legal relations could be waived by an
express terms in contract.
*Legal capacity of the parties the term capacity as used in law refers to
the liability or to acquire legal rights. Every person of full legal capacity
can enter into a contract. Any contract without full capacity of the parties
may not be treated as valid. As a result it certain infirmities of certain
Persons such as minor.
What is offer? How is it important in contract?
An offer is a promise by the offeror to bind himself if the offeree also
agrees to be bound.
An offer is defined as a definite proposal, undertaken or promise made by
one person to another, with the intension that it becomes binding on the
maker once it is accepted by the person to whom it is made.
This definition shows the difference between an offer, the person has the
intention of being bound once there is acceptance of his terms, the other
(I . e invitation to treat) is mere allowance or permission given to another
person to make a proposal which may not be accepted.
Important of an offer

For a contract to exist there must be an offer which must be accepted by

the other party. The person who makes an offer is known as the offeror.
And the person, to whom it is addressed for acceptance is known as the
offeree.
Offer is an element to a valid contract. For a contract to be enforceable at
law there must be an offer. It is a requirement of law that an offer must be
communicated to the other party before it san be valid.offer marks the
beginning of with invitation to treat and when legally binded become a
contract .
Offer is very important in a contract . for a contract to exist there must be
an offer which brings about the important of an offer to a contract.
What is a mistake? With relevant cases explain mistaken identity
`In the law of contract , the word mistake has a narrower meaning than
in its colloquial use it has been said that if mistake operates at all, it
operate so as to negative or in some cases to consent.
However, in contract law , a mistake is an erroneous belief, at contracting
that certain fact are true.
Mistaken in identity
it is also possible for a contract to be void if there are mistake on the
identity of the contracting parties
mistake on the part of one of the parties as makes the contract void if
the identity of the party is material to the formation of the contract . But
where such identity is not material it will only make the contract voidable
and a third party may acquire a good title under the contract if he is a
bonafide purchaser without notice.
In the leading English case of Lewis V Avery . lord dinning held that the
contract can be avoided only if the plaintiff can show that at the time of
agreement the plaintiff believed the other partys identity was if vital
importance. A mere mistaken belief as to the credibility of the credibility
of the other party is not sufficient and also in case 6 shogun finance
limited v Hudson
What is mistake? Explain the type of mistake with relevant cases .
A mistake normally occurs in a contract where the parties are under a
false belief about the existence or nature of the subject matter of the
contract.
TYPES OF MISTAKE
There are three types of mistake by Cheshire and Fifoot which are
common, mutual and unilateral mistake.
A) Common mistake this occur where both parties enter into the contract
under the same mistake. The parties are under the same fundamental
misapprehension; they are both wrong in Gallowey v Galloway, the
plaintiff and the defendant believed that they were marriage under the
marriage Act of 1914 whereas they were not they agreed to separate and

the defendant promised an amount of money for the monthly up keep of

the plaintiff.
The court held that the agreement to separate was void by reason if
mistake since the facts on which the agreement was based i.e the
marriage under the marriage 1914 was not existence.
B) Mutual mistake under this type of mistake both parties make different
mistake. It is a situation if complete misunderstanding of each others
intention. The law state that there is no consensus ad idem, hence no
contract exists.
It is an instance where the parties are unknown to each other, thin king of
two different things on the same object matter.
In Raffle V, a Winchelhaus, Cargo of cotton if cotton was described
as being on the
S S peerless from Bombay. The fact was there were two ships with this
particular name sailing from Bombay, the internal between departure and
arrival of the two ships was three months. The seller intended to put the
cargo on the second ship, to arrive months later in December; the buyer
expected the cargo on the first ship two arrive three months earlier in
October. The court held that the contract was void for mutual mistake.
c)
unilateral mistake: here, one party made a mistake which the other
party is aware of. It means that the situation is one where it is only one of
the parties that suffer a lack of knowledge about the true state of affairs-it
may be a mistake as to the identity of the person with whom the contract
is made; or as to the nature of the contract itself.
In Philips V Brooke, a vogue bought a ring In jewelers shop. He then
persuaded the jeweler that he was Sir George Bullough and due to this, he
was allowed to pay by cheque. The cheque of course, was dishonoured
and the ring was traced to a pawnbroker. The jeweler claimed that the
contract was void for mistake but the court rejected this claim. The
jeweler had dealt with the man facing him, and the question of payment
arouse later. This set of facts repeated itself in another manner in the case
of Lewis V Averary.
WITH RESPECT TO LAW OF CONTRACT, EXPLAIN MISREPRESENTATION IN
DETAILS.
For any agreement to come into being, there must been some preliminary
discussion or negotiation, Here, parties encourage each other to enter into
the contract, by making statements of inducement to the other party. If
such a statement is false, it is referred to as a misrepresentation.
Thus, a misrepresentation is a false statement regarding a material
fact made by a party to a contract or his duty authorized agent, including
the other party to enter into the contract
However, it is important to note that parties are not liable for
misrepresentation based on non-disclosure of facts, it is the act of
deliberate falsehood that constitutes misrepresentation and not the
silence of the party to disclosure or to correct an erroneous belief of the
other. In U.A.C v Jazzar, the court held that the parties are not bound to
disclosure all material facts and it was left o each party to protect his

interest in the best way he can , but where a partial disclosure will distort
the truth about a material fact, a duty to disclose will arise
In London Assurance V mansel, a person seeking to take a life assurance
policy was asked on the proposal from what other proposal to cover he
had made. He answered truthfully albeit partially that he had made two
proposal the previous year both accepted> He did not mention that he
had also made several proposals , which were rejected. This half truth was
held to be misrepresentation
Moreover there are 3 types of misrepresentation which are innocent,
Fraudulent and Negligent misrepresentation.
A) Innocent misrepresentation- this occurs where the maker of the statement
makes it, to be true but which in fact turns out to be false. I8n Oscar
chess Ltd. V Williams, the defendant was a private car owner who was
trading in his vehicle in part exchange for another. He stated falsely that
the car was a 1948 model whereas in fact, it was a 1939 model. The
statement was innocent because the registration document had been
falsified by a previous owner the court held that the statement was a
simple misrepresentation and his innocent was a good defence to any
liability
B) Fraudulent misrepresentation- this type of misrepresentation occurs when
the maker of an untrue statement makes it knowing it to be false of an
untrue statement recklessly and without believing it to be true. The
statement must have induced the other party to make the contract.
In smith v kay, the defendant was heir to a large fortune which at the age
of twenty one would become his. The defendant was in dested severally
during infancy and the plaintiff who used to discount bills issued by the
defendant, plotted with a third party to get the defendant to execute
documents entitting the plaintiff to a far higher sum than he was actually
entitled to. The court held that the agreement was void for fraudulent
misrepresentation.
C) Negligent misrepresentation- this occur when a party to the contract
makes a false statement of material fact without reasonable grounds for
believing it to be true. For a negligent representation to occur the
representation must owe a duty of care to the representation.
In Nocton v Ash Burton, a mortgage sued his solicitor and alleged that the
solicitor had wrongly advise him into ring the remaining security in
sufficient. He also allege that the solicitor deliberately did this because
he stood to benefit from the action. This court held that though fraud was
not proved against the solicitor, he was nevertheless for negligent
misrepresentation.
REMEDIES FOR MISREPRESENTATION
The two main remedies
normally awarded by court are damages and
rescission.
Damages

these are awards of monetary sums to a party as

compensation for his suffering from the wrong of the party.
Recession - at law, a party that has been include to enter into a
contract through misrepresentation even innocent, is vested that the right
to rescind the contract I .e to the end it (the contract ) if he so wishes.
Restitution in integrum then take place that is, the person are restored to

their original position. In Adam v Newbiggin, a person was induced by

misrepresentation to take up shares in a company. The court allowed him
to rescind the contract and to recover his capital, when the company
collapsed short after.
In conclusion, misrepresentation takes the form of untrue statement
, which is made before , statement of opinion, intention or about the law
does not amount to misrepresentation. Statement that have the effect of
promoting ones product are not misrepresentation. They are called mere
puffery.

A)

B)

a)
b)

A)

B)

WITH
RELEVANT CASES, EXPLAIN DURESS AND UNDUE INFLUENCE
HIGHLIGHTING THE PRESUMPTION OF UNDUE INFLUENCE.
Duress; this arises when a person is induced to enter into a contract
through the use of force or pressure. The law presumes that this consent
was not freely given.
In willian v Baylay, a father was indeuced to give up property as security
for his sons doesnt to the bank by the banks threat to prosecute the
son. The court set the agreement aside for duress.
Undue influence; this arose at equity out of the recognition and narrow
scope of application of the doctrine of duree at common law. Equity was
prepared to recognized instances where less direct pressure were used as
constitution undue influence.
Emphasis was laid instance where improper pressure was proved to have
led to abuses of confidential relationship. The difference between duress
and undue influence is that In duress, the pressure or threat is direct,
while in undue influence the pressure is softer indirect and more subtle.
PRESUMPTION OF UNDUE INFLUENCE
Undue influence is recognized by the court in two instances ;
Where there is no special relationship between the parties but an
unnecessary authority or influence was used to arrive at the contract.
Where there is a special relationship between the parties, min this
instance, undue influence has to be proved by the party alleging that
contract was entered into by him due to the influence. The presumption
can only be rebutted in this case by proof that the party had independent
advice or used his own freewill.
In Lioyds bank ltd. V Bundy, a son had financial problem with s bank. The
bank manager visited the father and persuaded to give the bank a
guarantee of the sons debt and a mortgage of the father of the fathers
house as security. The father was old and not priory informed about the
deal by the bank. He was given no chance to seek expect or independent
advice which might have been against the transaction. The court
presumed and held that the contract was a result of undue influence, and
was thus set aside.
Where there is a special relationship ; the court have establish that a
special relationship exists between the following group of person; parent
and child ; guardian and ward; solicitor and client; doctor and patient;
teachers and student; and even to religious orders and disciples.
However, the rules does not appl to husband and wife. This may be easy
to fathom since it is hard to establish a contract between souses. Un less

the relationship is already strained, the court would establish a lack of

intention to creat legal relations.
In powell v powell, through a settlement property executed a woman
shared her property with the children of her stepmothers second
marriage. The settlement it self was executed under the influence of and
subtle inducements by the stepmother . though she had attained the age
of maturity, the court held that the settlement was obtained by undue
influence and as such should be set aside.

GIVE A DETAILED EXPLANATION ON VOIDABLE CONTRACT ON INFANTS.

Voidable contract is a contract where one of the parties can avoid his
obligation while the other party cannot . it is the innocent party that can
benefit from such contract.
A contract which makes an infants in the subject matter permanent
and imposes continuous right and liabilities on him is voidable. Such
contract will be valid and binding until they are repudiated during infancy
or within a reasonable time of attaining majority. There is however, no
retrospective effect for such repudiation.
In this manner, the infant cannot recover the money paid in respect of
such contracts in so far as the benefit has been conferred on him.
However, voidable contract of an infant can be classified into the
following contract, he is at liberty to withdraw from such contracts
unilaterally
1. Contract to become a partner in a partnership.
2. Contract to subscribe for company shares or
3. Contract to take a lease of property.
Where a minor repudiated such a contract
i.
The minor is not liable for debt and liabilities that have not become due
and payable at the time he repudiated, the contract.
ii.
Monies and deposits paid by the minor before repudiated, may not be
recovered by him unless there is total lack of consideration. There is total
lack of consideration when the minor obtain no benefits whatsoever from
the contract.
In steinberg v scale (leeds) Ltd , the court held that the contract of
subscription for company shares by a minor was valid because the child
had received some benefits like attending and voting at the companys
meeting.
iii.
An infant may withdraw from a partnership and refuse to pay for his
portion of the partnership debts: lovell and chrismas v. Benchamp.

A contract made by dunk or insane person is binding upon him; explain on

what ground is the contract not binding upon him.
When a contract is made with a lunatic or person of unsound mind, such a
contract is voidable. But where the contract is made during his lucid
interval, the contract is enforceable against him
Also where the goods supplies are necessaries, a claim can be made
for payment at a reasonable price, where a person proves that at the time
of the contract he was so drunk that he was capable of knowing what he
was doing, he can avoid the contract. But where the other party proves
that he was not aware of the facts of his drunkenness, and took no
advantage of it, the agreement can be enforced against the drunk.
How can contract by infants be void?
By section 1 of the infants Relief Act, 1874, the following contracts by a
minor are void.
1. Contract to repay loans given to a minor.
2. Contract to pay for goods, which are not necessaries.
3. Agreement s involving an Account stated
Under what circumstance can a person who is not a party to a contract
enforce contract?
Condition when someone who is not a party to a contract enforce
contract, occurs when due to privities which recognize a third party. Who
can be assigned, or trust with duties to perform, they are third party
agents. They are not fit for exemption clauses, they enforce contract when
they are privity to a contract.
And also if they were directed by their principal to act on their
behalf which is known to be an agent, who acts on the principals behalf
that is , he must follow the order given by his principal
Explain in details the contractual capacity of a corporation
The contractual capacity of a corporation is major carried out or entrusted
by their agent. The contractual capacity is governed by the companies
memorandum of association which shows the companies contractual
power.
So therefore the contractual capacity of the companies of the company.
What are exemption clauses? On what ground is it in operate.
Exemption clauses are clauses which are used to reduce the liability of a
party, in presumption of a breach in contract. It is a clause used to reduce
a responsibility to a contractual term just in case of any breach, it is
identical only to the principal and not agent
On what ground is it in operative. Exemption clauses are in
operative only to the actual parties to the contract. It does not require the
attendant or attention of its agent only its principal.
Exemption clauses are just to protect or secure the responsibility of one
party of there is any breach, so therefore exemption can be basically
notified or recognized in condition of a voidable contract.

Explain exemption clause and how it will form part of the contract.

i.
ii.
iii.

Exemption clause are clause which helps to limit the performance or right
of a party; in order for him not to be subse quently affected if there is
any breach of contract.
It can for part of a contract if;
The party affected by it has a reasonable notice of its existence.
If the contractual document contains the exemption clause and
If one of the party is badly affected by a breach, and would latter sign or
take note of an exemption clause to limit his responsibility.
It is a rule that an agreement will not constitute a binding contract unless
it is intended by the parties to it that it should give rise to legal relation,
Explain .
This will not create or constitute a binding contract because each parties
must agree vividly to have legal relationship, either when each of them
are fully satisfied, but before then they might just agree to go into a
contract not binding one of them but just to satisfy their needs.
What is illegal contract? How can a contract be referred to as illegal.
Illegal contract is a contract which does not comply, agree or which is
prohibited to take place in the world of contract, which can engulf it into
service effect of any participant or attendance who are involved in the
misdoing.

i.
ii.
iii.
iv.
v.
vi.

Contract is reffered to illegal if;

It is unaccepted by statute.
Necessary measure are not carried out.
Certain rules about contract are not implemented.
When it is cracked or being breached.
When it involve drastical act which are not implemented in the rules of
contract.
When it entails sexual misconduct.
Acceptance is an important condition of a valid contract. Explain.
For an offer to be valid there must be an offer which is accepted. For
satisfaction, It must first be accepted by the offeree. Acceptance is certain
to occur, if not contract would have no usefulness or meaning ,
acceptance is a very key concept of contract, which enables continuity of
a contract between two parties.

i.

The offeror and acceptor must voluntarily enter into a contract. What are
the situations under which a contract may be vitiated?
The situation under which the contract may be vitiated in;
When the offeree attaches condition before accepting an offer from the
offeror.

ii.
iii.
iv.

When one if the parties dies.

When it has an unfulfilled conditions and
When one of the party is incapable of meet certain requirement of the
contract.