KASNEB – CPA | CIFA | CS | CCP | CFFE | ATD Study Notes And Revision Kitss
Legal principle is discharge of a contract by performance. A contract is only discharged if parties precisely perform their obligations in line with the terms otherwise it will not be discharged. However if a person substantially performs the obligations but Read More …
The following facts must be disclosed Those that can influence the other parties’ decision. Changed circumstances which affect the truthfulness of facts already given if the contract has not yet been entered to. Facts likely to increase the liability of Read More …
Ways in which an offer could collapse When not accepted in the prescribed manner When not accepted at the prescribed time Counter offer Rejection By revocation
According to the law of contracts the following mistakes render a contract void: Common mistake This is a mistake as to the existence or ownership of the subject matter. Each party in the contract makes the same mistake which Read More …
Five exceptions to the general rule that performance must be precise and exact performance are as follows: Divisible contracts: Some contracts are by their nature divisible and performance of a part thereof entities the performer to payment for work done. Read More …
Advise to Lena Zola This is a case of discharge of contract by frustration. Mariene Kamonya’s illness was an unforeseen circumstance which prevented her from performing her part of the contract. Money paid by Lena Zola is recoverable on a Read More …
Consequences of illegal contracts The contract is void. Money paid and chattels or land transferred are irrecoverable. A subsequent contract which is founded on or springs from an illegal transaction, is illegal and void. It is legally unenforceable.
Elements of a valid contract Offer and acceptance, Intention to create legal relations Lawful consideration. Capacity of the parties. Free consent. Lawful object. Possibility of performance.
Essential features of an offer It must be an expression of the willingness to do or abstain from doing something. The expression of willingness must be to another person. The expression of willingness must be made with a view to Read More …
Discuss the exceptions to this doctrine. i) Third party insurance -Under the Insurance Act, users of motor vehicles should be compensated if the motor vehicle was being driven by an insured driver or an authorized driver. ii) Agency- An agency Read More …