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Law of Contract

Unit: Introduction to Law and Governance

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August 2025

 2 Questions
Question 4b
​​In relation to international contract of sales, describe FOUR types of contracts that relate to sea routes.


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Question 3a
​​Kaburu Osango owns a boutique fashion store and enters into a contract with Vivian Vugusta, a renowned designer, to deliver 100 custom-made dresses by June 1 for an upcoming fashion show. The contract stipulates that the dresses must be made from a specific high-quality fabric and delivered on time. Vivian Vugusta agrees to the terms and receives a 50% upfront payment. However, due to unexpected issues with her suppliers, Vugusta delivers only 50 dresses by June 1 and some are made from a different, lower-quality fabric.  
 
Required: 

(i) Advise Kaburu Osango on THREE potential legal remedies against Vivian Vugusta’s action.  

(ii) Advise Vivian Vugusta on THREE possible defenses available to her. 


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April 2025

 2 Questions
Question 4c
​​With reference to the law of contract in your country, discuss FOUR implications of contracts with a person of unsound mind.


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Question 4b
​​Sarah Aziza owns a small boutique. She has been discussing with James Clay, a supplier, regarding a large order of fabrics. Over the course of several months, Sarah Aziza has made multiple informal assurances to James Clay that she will place an order once her current stock runs out, although they never formalised any agreement in writing. Based on these assurances, James Clay went ahead and purchased a significant quantity of fabric, expecting Sarah Aziza to follow through with her order. However, when Sarah’s stock finally runs out, she informs James Clay that she has decided not to proceed with the order and will instead source the fabrics from a different supplier. James is left with surplus fabric that he is unable to sell and suffers significant financial loss. He sues Sarah Aziza for the losses incurred.

Required: 
Analyse THREE reasons why James Clay is likely to succeed in his claim against Sarah Aziza.


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December 2024

 2 Questions
Question 5b
​​A bank owes a duty of confidentiality towards its customers. In relation to the above statement, explain THREE circumstances under which this duty can be exempted.


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Question 7d
​​Discuss FOUR vitiating factors of law of contract.


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August 2024

 2 Questions
Question 1b
​​Explain FOUR remedies available for breach of contract.


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Question 5d
​​Highlight SIX consequences of frustration of a contract.


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April 2024

 1 Questions
Question 4d
​​With reference to the law of contract, identify FOUR characteristics of unstated/innominate terms in a contract.


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December 2023

 2 Questions
Question 2d
​​Outline SEVEN circumstances that would make consideration in a contract unlawful.


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Question 4a
​​A contract can be discharged by frustration if it becomes impossible to perform. Identify SIX factors that may frustrate a contract.


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August 2023

 1 Questions
Question 5d
​​Examine THREE types of exemption clauses that could be used in a contract.


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April 2023

 3 Questions
Question 3a
​​With reference to Law of Contract, explain the following terms:

(i) Void contract.

(ii) Punitive damages.


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Question 3b
​​With regards to the Law of Contract, state SIX rules of revocation of an offer.


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Question 5a
​​Mariana was travelling from Nairobi to Mombasa by a bus operated by Safina Travellers Bus Company. At the booking office, she paid her fare for the journey including a charge for the luggage she was carrying and was issued with a ticket. On the rear side of the ticket, were warnings to the travellers that the safety of their luggage was solely their business and that if any luggage got lost, the bus company would not be liable for such loss. Upon arrival in Mombasa, Mariana could not find her luggages and raised the issue with Safina Travellers Bus Company management who denied any responsibility and referred her to the clauses in the ticket.

Advise Mariana on her rights in the circumstances.


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December 2022

 2 Questions
Question 1a
​​With reference to the law of contract, state FOUR circumstances under which a court might nullify or mitigate the hardship created by an exemption clause.


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Question 3a
​​In relation to the law of contract:

(i) Define the term “consideration”.

(ii) Outline FOUR circumstances in which a contract might be frustrated


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August 2022

 3 Questions
Question 3c
​​Describe five conditions necessary for the doctrine of estoppel to apply.


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Question 3a
​​Discuss four cases where a court cannot grant the remedy of specific performance.


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Question 7b
​​In relation to the law of contract:

(i) State three rules governing exclusion clauses.

(ii) Explain the “contra proferentem” rule.


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April 2022

 1 Questions
Question 4b
​​Describe five ways in which an offer might be terminated.


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Pilot December 2021

 3 Questions
Question 6c
​​Komba promised to supply Nyule with 100 bags of yellow beans on Wednesday, 27 October 2021. Nyule accepted to pay the price after receipt of goods. On the agreed day, Komba did not supply the goods. 

Required: 

(i) Explain the liability of Nyule. 

(ii) Expound on when the court may refuse to grant recession order.


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Question 5a
​​Discuss five offences against a person as a result of tampering with electronic documents relating to contracts.


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Question 2a
​​Yako took his clothes to laundry for dry cleaning services. He was given a receipt which he did not read. When he reached home, he read it more carefully and saw the writing below: 

“In case a garment is damaged, the company will be liable to pay up to Sh.1000”. 

Upon inspection of the clothes, he realised that they were damaged as a result of negligence of the laundry company. 

Advice Yako


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December 2021

 1 Questions
Question 3b
​​ In the context of the law of contract:

(i) Highlight four instances when past consideration will be sufficient to support a contractual claim.

(ii) Provide six examples of contracts that are illegal at common law


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August 2021

 1 Questions
Question 5a
​​With reference to the law of contract, discuss five rules governing acceptance of an offer.


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May 2021

 3 Questions
Question 7c
​​In the context of the law of contract, explain the meaning of the following terms: 

(i) Discharge. 

(i) Termination. 

(ii) Puff. 

(iii) Representation.


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Question 5b
​​On 20 January 2021, Joseph Mita entered into a written agreement with Zoa Juma in which Zoa Juma agreed to smuggle some goods into the country for Josheph Mita by the end of March 2021. Joseph Mita promptly paid Zoa Juma the agreed consideration of Sh.500,000 in full, but Zoa Juma has reneged on the deal. Joseph Mita feels aggrieved and intends to sue Zoa Juma.

Analyse the legal principles applicable in the above case and advise Joseph Mita accordingly.


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Question 5a
​​Explain three ways in which terms might be implied in a contract.


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November 2020

 1 Questions
Question 3b
​​(i) Explain the difference between an "offer" and "invitation to treat". 

(ii) Samuel Leo made an offer to purchase David Kesho's car. However, David Kesho upon accepting the offer was informed by Samuel that the offer was terminated. David did not understand how that was possible. 

Advise David on the various ways in which an offer could be terminated.


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November 2019

 1 Questions
Question 3a
​​ In relation to the law of contract: 

(i) Explain three rules that govern the measure of damages for breach of contract. 

(ii) Alex agreed to paint Angela's house at an agreed contract price. When Alex had finished the work, Angela discovered that although most of the painting was satisfactory, Alex had forgotten to apply a coat of gloss paint on one of the doors. Alex fell sick and could not complete the work. 

Angela has refused to pay Alex the contract price claiming that he has not completed the work.

Advise Alex on the legal position.


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May 2019

 3 Questions
Question 3c
​ ​​Examine the principles relating to contractual capacity of minors.


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Question 3b
​​In relation to the law of contract, explain four elements of an enforceable contract.


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Question 1a
​​​Brutus Okeka purchased a radio from Dancing Spoon Ltd. on hire purchase terms. The purchase price was Sh.45,000. He paid a down payment of Sh.5,000 and the balance was to be paid in monthly instalments of Sh.5,000. Brutus Okeka defaulted after consistently paying the required instalments for a period of six months. Dancing Spoon Ltd. promptly repossessed the radio. Brutus Okeka feels aggrieved and seeks your advice. 

Analyse the legal principles applicable in the above case and advise Brutus Okeka.


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November 2018

 2 Questions
Question 6a
​​In relation to the law of contract, explain four ways in which a contract might be discharged.


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Question 6b
​​Tom Obonyo wrote to Jerry Katana offering to sell his car to him at Sh.500,000. Jerry Katana accepted Tom Obonyo's offer subject to the price being reduced to Sh.450,000. It has become apparent that Tom Obonyo is not willing to sell the car at Sh.450,000. Jerry Katana now writes to Tom Obonyo agreeing to buy the car at Sh.500,000 but Tom Obonyo responds that he has already sold it to a third party. Jerry Katana is upset and comes to you for advice. 

Advise Jerry Katana on the legal position.


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May 2018

 1 Questions
Question 4c
​​Ken Jembe advertised the sale of his farm. He was approached by Peter Potea who wanted to buy the farm. In the course of negotiating the price, Peter Potea asked Ken Jembe how many sheep could be reared on the farm. Ken Jembe replied, "I have not used the farm for sheep rearing but I think it could support 2,000 sheeр". Peter Potea bought the farm and immediately purchased 2,000 sheep to rear on it. However, the farm was unable to accommodate the sheep and Peter Potea is aggrieved. He intends to sue Ken Jembe for misrepresentation.

 Advise Peter Potea.


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November 2017

 1 Questions
Question 3b
​​Many clauses in a contract purport to exclude liability for injury. loss or damage.

Explain five rules which determine the effectiveness of such clauses.


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May 2017

 2 Questions
Question 1a
​ ​​Alex Kombo entered into a five year written lease agreement for office premises with Mercy Omagwa. After the end of the lease period, the parties agreed that Mercy Omagwa would continue occupying the office premises for another five years. On that basis, Mercy Omagwa made extensive renovations to the office premises. She installed new carpets, painted the premises and put in a new heating system.

Alex Kombo later changed his mind and told Mercy Omagwa to vacate the office premises claiming that the lease agreement has expired.

With specific reference to promissory estoppel in the law of contract, advise Mercy Omagwa on her legal rights.


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Question 3c
​​One of the remedies available on breach of contract is action for specific performance. However, there are cases when the remedy might or might not be granted.

With reference to the above statement, identify three cases when specific performance might be granted and three cases when it might not be granted.


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November 2016

 2 Questions
Question 6a
​​Explain three duties of a bailee in a bailment.


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Question 3a
​​ Summarise four ways in which a contract might be discharged by operation of the law.


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May 2016

 1 Questions
Question 3b
​​Explain four essential elements of an enforceable contract.


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November 2015

 1 Questions
Question 3a
​​Discuss five remedies available whenever there is a breach of contract.


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Pilot September 2015

 2 Questions
Question 5b
​​(i) Highlight two differences between "law of tort" and "law of contract". 

(ii) Explain three provisions of the limitation of actions Act in relation to contracts.


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Question 4a
​​The parties to a contract must precisely perform their obligations on the contract otherwise the contract shall not be discharged. 

Highlight four exceptions to the general rule of precise performance.


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