FACULTY OF LAW

LLB 114 LAW OF CONTRACT I

Date: Monday, 23 August 2021

Date of Submission: 5 August 2021

INSTRUCTIONS TO CANDIDATES
1. This is an open book examination. Students can come to consult all materials available
for the course.
2. Answer both questions
3. Answers with a proper use of authorities and critical thinking will be awarded higher

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Q.1.
In 2018 Okello leased a block of flats in Gulu Town to Nantaba at an annual rent of Ush.
1,000,000/= Owing to the war conditions in Northern Uganda. Nantaba was contemplating
terminating the lease. Consequently, Omoding offered to accept a reduced rent of Ush.
700,000/= per annum. The resulting agreement was not supported by any fresh consideration
and operated from 2000 to 2001. In 2001, all Omoding’s Flats were fully let and he claimed the
full rent for the period beginning 2000 and for the future. Omoding claimed that the agreement
to accept a reduced rent was void, since it was made without consideration. Nantaba disagreed
with Omoding and argued that Omoding was stopped from denying the promise he made.
Nantaba is dissatisfied with the notice of eviction and seeks your legal advice.

In a separate event, Agatha, who regularly travels by bus, took her suitcase to be deposited at
the left luggage office of the Gaagaa Bus Company. She was handed a small slip of paper which
she was told by the attendant was to enable her to reclaim her suitcase. Agatha put the slip of
paper in her handbag without glancing at it. On the paper appeared the following words in
small print:

“The liability of the company for loss of or damage to goods deposited is limited to Ush.
100,000/= or the value of the said goods whichever the lower.”
These words also appeared on a notice above the left luggage office counter. Harriet’s suitcase
contained a designer coat worth Ush.370,000/= When she returned to collect the suitcase the
attendant informed her that it was missing and could not be found. Advise Agatha.

Lastly, Cavendish University sports department organized a football match at Namboole

Stadium between the faculty of law team and the faculty of Science and Technology team.
Anticipating a tense environment during the football match, the sports department called for
police officers from Jinja Road Police Station to help with security during the football match just
in case behavior typical of football crowds reared its ugly head. The organizers were required to
pay for “the special services” by the police men, if the organizers requested for security. The
sports department of the Cavendish University refused to pay for the security services arguing
that the police men were merely carrying out their normal duties in ensuring the maintenance
of law and order. Advise the police men on their legal rights.
Identify the legal issues and advise the parties accordingly.

Total 35 Marks

Q.2

a) ‘‘Where there is a contract expressly setting forth the bargain between the parties, it is a
general rule, as well as established that terms are to be implied only under compulsion
of some necessity” Per Lord Evershed MR in Lynch V. Thorne [1956] 1 ALL ER 744 at
746. Discuss. (15 Marks)

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 b) Bill is a CUU student enrolled in a Bachelor of Laws course. His father Ben is very
concerned that Bill is not spending enough time studying. Ben tells Bill that he will pay
him the sum of 10 million shillings if he stays home and studies on the weekend until
the exam. Relying on this money being paid, Bill puts a deposit on a motor bike. Advice
Bill whether he can make Ben pay the money. Give reasons for your answer and cite an
example of a relevant case. (10 Marks)
c) Steve went to Woolworth to buy a designer jean he had seen on the cloth line costing
50,000/=. Having longed to own a designer jean, Steve borrowed money from his friend
Eric to purchase the jean. Upon reaching the counter, Steve was informed that the jean
costs 500,000/= and not what is indicated on the tag. Steve feels aggrieved and would
like to sue the shop. Discuss. (10 Marks)
Total 35 Marks

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