Group Assignment 2 on law of contracts =PADM

Program: Extension/Contract
General Instructions:
 Read Each Question carefully
 Your answers should be concise and to the point
 Use proper citation and quotation style-refer to research class lecture notes
 Page limitations, not more than 8 pages, group members not more than 6students
 Font size, 12, line space1.5, Times New Roman
Questions:
1. Read Art.1675 thoroughly, identifies five important elements of the definition and
analyzes each based on the Rules and Exceptions of contract law.
2. Art. 1678 states essential elements of a valid contract. These are capacity, consent, object
and form.
i. Define what capacity and incapacity mean. Identify the two broad categories of
incapacity and describe the causes of general incapacity and special incapacity.
ii. For contract to be valid, consent must be genuine. What does free or genuine consent
mean and what are the factors that causes defect in consent. Briefly Explain each.
iii. When the contract lacks capacity and / or free consent the contract will be a voidable
contract. What would be the options available to the victim? Explain the consequences of
each option.
iv. State the requirements of the object and form of the contract. What would be the fate of
the contract if the object and form are defective? What would be the type of contract?
Discuses the consequences.
3. “Where an offer is made silence shall not amount acceptance.” Explain this statement
based on this principle and its exception.
4. Compare and contrast a true offer and a declaration of intention. Put example of the
same from the civil code articles.
5. Identify at least five grounds for the can termination of an offer and explain each briefly.
6. The following are the major effects of a contract:
6.1. The promise of the parties will be a principle to bind the parties equally. Explain it
briefly.
6.2. The contract of the parties may be subjected to Interpretation. State the situations
that demand the interpretation of the contract
6.3. Define what Performance of a contra mean
6.4. In principle, Variation of a contract is made by the agreement the parties. Identify and
explain the situations where variation of contracts by court order is possible.
6.5. Define what non- performance of contract means and explain the effects of non-
performance of a contract(i.e., alternative remedies for none performance )
6.6. What are the grounds of extinction of a contract? At least indentify six of them and
explain each.
Instruction:
Pages: not more than 15 pages
New Times Roman
Reference Materials: handouts, Arts.1675---1856 of the Ethiopian civil code on contracts.
Obligations and relevant materials from the Internet and other sources
Submission date: on the final 15 days before the Final exam,