OLABISI ONABANJO UNIVERSITY

NAME; OGUNSOLA EMMANUEL OLALEKAN.

DEPARTMENT; COMPUTER ENGINEERING

COURSE TITLE; BUSINESS LAW IN NIGERIA

BUS 103

MATRIC NUMBER; OOUC/DCME/049

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
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

CONTRAT
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 walfare. 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
Intension 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.

WITH RELEVANT CASES, EXPLAIN DURESS AND UNDUE INFLUENCE HIGHLIGHTING

THE PRESUMPTION OF UNDUE INFLUENCE.
A) 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.
B) 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 ;
a) Where there is no special relationship between the parties but an
unnecessary authority or influence was used to arrive at the contract.
b) 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.
A) 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.
B) 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.

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;
i.
ii.
iii.

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.

Contract is reffered to illegal if;

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

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.

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;

i.
ii.
iii.
iv.

When the offeree attaches condition before accepting an offer from the
offeror.
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.