SECTION B (ANSWER ONLY ONE QUESTION) [ Each Question carries 30 marks] le 2: How do the courts decide whether to grant an order of specific performance? Are the criteria used sensible? ‘... in business transactions what the law desires to effect by the implication [of a term] is to give such business efficacy to the transaction as must have been intended by the parties.’ (Bowen LJ in The Moorcock (1886—90).) Does this still accurately represent the courts’ approach to the implication of terms? Does Parliament, as, for example, in the Sale of Goods Act 1962 (Act 137), take a different approach? spp! 02-19 223. In January 1996 Joe and harry were negotiating for the sale of Harry's fish and chip restaurant to Joe. Harry stated that the restaurant fully complied with all the public health regulations. In fact it did not comply with the regulations and the public health authority had written to Harry several times informing him of this, but thinking that the letters were just circulars, Harry had thrown them away without opening them. Harry also stated that the business had considerable potential for increasing profits as a competitor had recently closed down (which was true). In February 1996 Joe Purchased the business for GHc100, 000. On taking over the business Joe was pleased to discover that it was quiet profitable. However, when two customers suffered food poisoning after eating at the restaurant Joe discovered that the restaurant did not comply with the public health regulations (the breaches of the regulations were directly responsible for the food poisoning incidents).After paying out GHc500 to the customers who had suffered food poisoning, Joe paid GHc5, 000 for alterations to the premises so as to comply with the public health regulations. At this stage the business remained profitable and Joe was happy to continue running it However, shortly afterwards MacDonuts, a national fast food company opened a new restaurant opposite to Joe's he soon discovered that he was losing a considerable amount of custom to his new competitor. Joe suspects that Harry was aware of MacDonut's plans before he sold the restaurant. Advise Joe.3. Budu, posing as Collinsvood Williams, a well-known Kumas: businessman, buys a white Range Rover car with registration number AS 214-15 from Kwabena Asante, who know of Collinswood Williams as a very rich man. Budu left Kwabena Asante with a dud cheque and immediately sold the car to Modern Motors, dealers in second-hand cars at Suame Magazine, Kumasi. Modem Motors re-sprayed the ar, changed the number plate and re-upholstered it, A month later, thieves stole Kwabena Asante’s car and he bought a Black Range Rover car from Modern Motors. Kwabena Asante has now noticed that the Black Range Rover car he bought from ‘Modern Motors bears the same chassis and engine number as his White Range Rover which he had “sold” to Budu, What is the legal position as between Modern Motors and Kwabena Asante? {05 Marks} Would it make any difference if Budu had stolen the car from Kwabena Asante’s garage? [15 Marks] 4. a) Discuss the various kinds of misrepresentation and the legal effect of each of them [15 Marks]. 5) With the aid of decided cases, explain the equitable doctrine of part performance [15 Marks] — a5. In Ghana, the Contracts Act, 1960 (Act 25) has abolished the common law rule on Privity of contracts subject to certain exceptions. With the aid of decided cases, discuss the above statement [20 Marks] 6. Write short notes on the following using decided cases for illustration [20 Mi.aks] a. Discharge by frustration b. Duress and undue influence as vitiating factors c. Doctrine of Substantial Performance|. Kwame Mensah is a very aged lawyer who lives in Kumasi. He is blind. He approached Amos a Realtor in January 2014 and informed him of his desire to buy a building, Amos informed Kwame of a building available for sale at Adu in Xumasi ‘hich would cost 300,000 Ghana cedis, Ames brought over the documents covering the em. Accoruing to the land and Kwame Mensah quickly appended his signatures to « the building in two agreement entered into, Kwame Mensah was required to pay f installments at the end of February and March of the same year. In March 2014, Cephas who wanted to dispose of his building in Adum approached Kwame Mensah and offered to sell it to him for 18,000 Cedis. Delighted at Cephas’ offer, Kwame Mensah Paid the full price to Cephas and moved in. Amos who has not received any money from Kwame Mensah heard about the development and went to demand his money from Kwame Mensah. Kwame Mensah says the documents he signed are not binding on him because he was mistaken as to their contents. In any case he cannot be bound by the contract because Amos should have treated the contract as having been vrainated when he did not make the first payment in February 2014. Advise Amos, [23 Marks] iss!law/36 -14my three friends, Michelle, Chiamaka_ ‘This has been a very tragic semester for me. Land and decided to go t Independence Day Jamboree. Frances, who was the designated driv + Rentals for three days. When we got to Elmina, we 1 the phone and checked in. To our utter 0 the Central Region for the and Frances saved some money fer, rented a Toyota highlander from Cheep Deals Cat located the Holala Hotel we had booked ove dismay, there was no running water and we had to descend four flights of staircase daily to fetch water for our bath as the staff had gone on strike on the morning of our arrival, Aso the “Splendid Continental Breakfast Buffet worth Dying For” which their brochure promised never took place; neither did the “Super Jet-Ski Experience”. We were told that the new management wanted things done differently. We could not re this after two days. We had to move into the Coconut Groove Hotel whose rates e were so expensive that Michelle had to sell her Ipad to pay our bill. On our return trip to Kumasi, we were stopped by the Police who informed us that Act 419 had been passed by Parliament in January last year making it unlawful for students to drive Toyota Highlanders. They seized the car and made us walk the entire 50 km journey to School. Cheep Deals Car Rentals have been chasing us for the rest of their money and ! don’t know what to do. Advise Judith on any legal action she can take against Holala Hotel and the Car Rental Company. [23 Marks]5. (a)With the aid of decided cases distinguish between illegality and unconscionability aS a vitiating factor in contracts. mises. (b)Sylvester and Naadu decided to operate a restaurant at the Faculty of Law Sylvester said he graduated wita an MBA from Harvard University in 2011. Delighted, Naadu agrees to enter into the partnership agreement with him as she believes that with her culinary expertise, they would make a formidable team. They ask Alexander, who is Sylvester’s lawyer to prepare an agreement to that effect and they both append their signatures. Under the agreement, Sylvester would be responsibie for the administrative roles of the business whilst Naadu supervises the kitchen. Shortly after, Naadu has discovered that Sylvester has never taken any course in business administration. Sylvester has mismanaged the restaurant’s funds and their bank accounts are in red. Naadu has gone to see Lawyer Alexander about the document andnot be admitted to add to, vary or contradict the terms of the written agreement”. his response was “where the agreement is reduced into writing, extrinsic evidence will y Naadu is confused at all this grammar! q Hariya was subsequently employed as a Waitress by Sylvester. She took the job because as part of its offers, she was told by Sylvester that it was a high-end restaurant for the elite, she would be given a car for her personal use and her accommodation will be provided for as well. She has worked with them for three months. Her accommocation has not been provided for as promised. Neither has she been given a car. Write a memorandum on the legal course available to both Naadu and Hariya. [23 Marks]3. (a) When will a mistake as to quality of the subject matter of a contract render a contract void? [10 Marks] (b) John is an owner of a shop which sells designer wears at Kumasi. A rogue introduced himself as a child of the chief of the town and negotiated with him for thepurchase of several items from the shop including electronic watches, suits, shoes and sprays, The cost of the goods amounted to GHC 25,000.00. The rogue issued @ cheque for the payment which was in the name of Eugenia. John asks for 2 proof of identity and the rogue shows a driving licence in the name of Bugenia and the cheque is accepted and the rogue leaves with al te items from the shop. “The rogue immediately sells the items to Mansa, another seller who immediately displays the goods in the shop. The cheque is presented and it is dishonoured rpecause it was stolen from the owner who had reported it to the police and his ppankers, A search is mounted for the rogue and the goods aze traced to Mansa’s hop. John demands the goods from Mansa but she insists that she bought the goods as a bona fide purchaser for value without notice. Consequently, John takes an action to recover the goods from Mansa. (a)What aze the respective rights of John and Mansa to the goods? (wWould your answer be different, if the goods were ordered online and same delivered to the rogue who subsequently, sells same to Esi, a bona fide purchaser? [13 Marks)5./Wherever two persons stand in such a relationship, that while it continues, confidence is necessarily reposed by one, and the influence which naturally grows out of that confidence is possessed by the other, and this confidence is abused, or the influence is exerted to obtain an advantage at the expense of the confiding party, the person so availing himself of his position will not be permitted to retain the advantage although the transaction could not have been impeached if no such confidential relation had existed.’ ‘er Lord. ‘Imsford in. With the aid of decided cases demonstrate your understanding of this dictum.6. The concept of economic duress is built on shaky foundations, since superior bargaining power always coerces. Discuss [23 Marks}