Group one

In the context of Contract Law, distinguish between an offer and an invitation to treat, providing
clear definitions for each term. Use relevant case law to illustrate your understanding.

Consider the following scenario:

Scenario: Miriam owns a bookshop and places a rare edition of a legal textbook in the display
window with a price tag of KES 10,000. Peter, a law student, enters the shop and asks to buy the
book at the listed price. Miriam refuses, stating that the book is no longer for sale at that price
due to high demand and recent market changes.

1. Discuss whether Miriam’s action of placing the book in the window with a price tag
constitutes an offer or an invitation to treat.
2. Advise Peter on whether he has any legal grounds to enforce the sale at the listed price.
Support your answer with appropriate legal principles and cases.

Group 2

In Contract Law, an offer may be revoked under specific conditions before acceptance. Discuss
the rules governing offers and their revocation, using relevant case law to support your answer.

Consider the following scenario:

Scenario: On September 1st, John offers to sell his car to Jane for KES 500,000 and specifies
that the offer will remain open until September 10th. On September 5th, before Jane accepts,
John decides to revoke the offer and sells the car to a third party, Mark. Jane, unaware of this
sale, sends a letter of acceptance to John on September 7th, which John receives on September
9th.

1. Discuss whether John's revocation of the offer to Jane was valid.

2. Analyze whether Jane's acceptance on September 7th creates a binding contract, despite
the revocation.

Support your answers with reference to relevant legal principles and case law.

Group 3

Lucy, a coffee farmer in Kericho, places an advertisement in a local newspaper offering to sell
her entire harvest of Arabica coffee beans for Ksh 1,000,000. John, a coffee trader in Nairobi,
sees the advertisement and immediately writes a letter expressing his willingness to buy the
coffee at the stated price. John posts the letter on Monday, but it reaches Lucy on Wednesday.
On Tuesday, Lucy receives a phone call from Jane, another buyer, who offers to purchase the
same coffee harvest for Ksh 1,200,000. Lucy agrees to sell the coffee to Jane and posts a letter to
John on the same day, informing him that she has already sold the coffee to another buyer.

However, John's acceptance letter reaches Lucy on Wednesday before her letter to him arrives.
John insists that a valid contract has been formed between him and Lucy.

Discuss the legal principles of acceptance and its communication in this scenario. Consider
the following in your answer:

1. The moment of acceptance in contract law.

2. The postal rule and its application in Kenyan contract law.
3. Whether Lucy's sale to Jane affects the contract with John.
4. Any exceptions or limitations to the postal rule in this case.

Group 4

Mwangi, a farmer, agrees to sell 50 bags of maize to Otieno for Ksh 100,000. Otieno makes a
down payment of Ksh 50,000, promising to pay the balance upon delivery. Before Mwangi
delivers the maize, Otieno asks Mwangi to give him 5 additional bags at no extra cost, claiming
that the market price for maize has dropped significantly. Reluctantly, Mwangi agrees but later
refuses to provide the 5 extra bags, stating that Otieno has no legal right to demand them.

Otieno insists that Mwangi must deliver the additional 5 bags, arguing that they are part of their
revised agreement.

Discuss the legal issues in this scenario, focusing on the doctrine of consideration.
Specifically, consider:

1. Whether the original agreement between Mwangi and Otieno is supported by valid
consideration.
2. The legal effect of Otieno's demand for 5 additional bags without additional payment.
3. The rule that “consideration must be sufficient but need not be adequate,” and its
relevance to the case.
4. Whether Mwangi is legally obligated to deliver the extra 5 bags under the doctrine of
consideration.

GROUP 5

Peter, a builder, agrees to renovate Anne's house for Ksh 500,000. Halfway through the work,
Peter realizes he underestimated the cost of materials and labor and tells Anne that he will not
complete the renovation unless she agrees to pay an additional Ksh 200,000. Anne, eager to have
the work completed, reluctantly agrees to pay the extra amount.

After Peter finishes the renovation, Anne refuses to pay the additional Ksh 200,000, stating that
she was under no legal obligation to do so. Peter threatens to sue for breach of contract.
Discuss the following issues in light of the law on consideration and the rules governing it:

1. Whether the original agreement between Peter and Anne is supported by valid
consideration.
2. The legal validity of Anne's promise to pay the additional Ksh 200,000.
3. The rule that “past consideration is not good consideration” and its relevance to this case.
4. Whether Peter can enforce the additional payment based on any exceptions to the rules of
consideration.

Group 6

Case Study:
James, a 15-year-old, enters into a contract to purchase a smartphone for Ksh 50,000 from a local
retailer. After a week, he changes his mind and wants to return the phone, claiming he is a minor
and lacks the capacity to contract.

Question:
Discuss the enforceability of the contract between James and the retailer. What legal principles
apply to contracts entered into by minors in Kenya, and how might the retailer respond to
James's claim?

Group 7

Case Study:
Mary, an elderly woman suffering from dementia, sells her house to her neighbor, Peter, for Ksh
5 million. Mary's family later challenges the sale, arguing that she lacked the mental capacity to
understand the contract.

Question:
Analyze the validity of the contract between Mary and Peter. What factors will the court consider
in determining whether Mary had the capacity to contract at the time of the sale?

Group 8

Case Study:
During a party, David, heavily intoxicated, signs a contract to sell his car to his friend, Sarah, for
Ksh 200,000. The next day, David claims he was too drunk to understand what he was doing and
wants to void the contract.

Question:
Evaluate the situation regarding the enforceability of the contract between David and Sarah.
What legal standards govern contracts made under intoxication in Kenya, and how might
David’s argument be received in court?
 Group 9

Case Study:
Amina, a 30-year-old woman, presents herself as a 25-year-old to secure a loan from a bank.
After defaulting on the loan, the bank seeks to enforce the contract, alleging that Amina
misrepresented her age.

Question:
Discuss the implications of Amina’s misrepresentation on her capacity to contract. What
defenses might she raise, and how would the bank’s ability to enforce the contract be affected by
her misrepresentation?

Group 10

Case Study:
James and his friend Mike enter into a contract where Mike agrees to pay James Ksh 100,000 to
help him cheat on his university exams. After Mike fails his exams, he refuses to pay James,
claiming the contract was illegal.

Question:
Evaluate the enforceability of the contract between James and Mike. Discuss the principles of
legality in contracts and how public policy affects the validity of agreements that involve illegal
activities. What arguments could both parties present, and what might the court decide?

Group 11

Case Study: ABC Limited, a company registered in Kenya, entered into a contract with XYZ
Suppliers for the purchase of goods worth KSh 500,000. The contract was signed by the
company's marketing manager, who did not have the authority to bind the company in such
transactions. After delivering the goods, XYZ Suppliers demanded payment, but ABC Limited
refused, claiming the contract was void due to lack of authority.

Question: Discuss the legal principles regarding the capacity of companies to enter into
contracts in Kenya. Analyze whether ABC Limited is bound by the contract with XYZ Suppliers,
considering the issue of authority and the implications of the Companies Act. Support your
answer with relevant case law.

Group 12

Case Study: The Ministry of Education in Kenya issued a public tender for the construction of a
new secondary school. The tender was awarded to Innovative Builders Ltd. after a competitive
bidding process. However, due to a change in leadership within the ministry, the new minister
decided to cancel the contract, citing budget constraints, even though the project had already
begun.
Question: Evaluate the legal capacity of governmental bodies to enter into and terminate
contracts in Kenya. Discuss the implications of this situation for Innovative Builders Ltd. and
any potential remedies available to them. Reference relevant statutory provisions and case law to
support your analysis.