Digital Trading Limited agreed to supply 200 computers to Mr. Konteh at the cost of D10,000 per computer. The company promised to deliver the machines within 30 days of the agreement.
(a)State four factors that may lead to the cancellation of the agreement.
(b) List and explain four essential elements of the agreement between Mr.Kontch and Digital Trading Limited.
Factors that can lead to cancellation of contracts:
(i) Death of one of the parties to the contract: If one of them dies, they can cancel the contract
(ii) Frustration: If Mr Konteh finds it practically impossible to supply faced by natural challenges such as flood, he will be frustrated and the contract can be canceled.
(iii )Failure in the part of Digital Trading Limited to pay consideration or part of it as at when due
(iv) Bridge of an agreement by one of the parties as related to the contract can also lead to cancellation of the contract,
(b) Offer Essential elements of contracts:
(ii) Acceptance
(ili) Consideration
(iv), Capacity
(i) Offer: This involves an agreement by a party to the contract to execute or go into the contract, Mr Konteh has probably offered Digital Trading Limited to supply them with the required computers
(ii) Acceptance: This has to do with the act of the other party, (not the one that made an offer) in this case, Digital Trading Limited, agreeing to the terms proposed by Mr Konteh in his offer:
(iii) Consideration: This, is the amount or cost implication accepted by both parties to the contract. In this case, D10,000 per computer in the consideration
(iv) Capacity:This involves the ability of each of the party to carry out its own obligation of the contract. In this case, it involves the ability of Digital Trading Limited to be able to pay the amount while Mr Konteh to be able to supply out of the age that can enter into contract.
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