Questions on Profile One (Part III)
Yvonne Harvey, Contributor

The All Dacosta Cup Football team battles the All Schools Team from Trinidad and Tobago recently. The All Dacosta team won 3-1. - Ian Allen Photo

HI. ARE you all ready for this week?s question? Good!
Remember last week, I had indicated that the question is from CXC past paper May/June 2003 (General) Question 5.

I hope you got a chance to look at the question. Here is the question for those of you who do not have the paper.

The following information appeared in a daily newspaper.

Property Services, No. 56 Newpark Saletown
Public Auction Sale
On January 25, 2002 at 10:00 a.m.
I will offer for sale on the date and at the place mentioned above the following vehicle: One l999 Toyota Mini Bus
Terms of Sale:

• Strictly cash on the fall of the hammer.
• Vehicle on view on the morning of the sale.
• Vehicle will be sold as is where is.

- John Brown, Auctioneer.

Tom Phillip who lived 20 miles away, drove to the address on the date specified with the intention of purchasing the minibus.

On arrival, he was told by the auctioneer that the minibus was no longer available and was removed from the items to be auctioned.

Tom Phillip became furious, threatened to sue for breach of contract and demanded a refund of his traveling expenses

(a) Define the term 'contract'. (2 marks) (b) (i) By attending the public auction
sale, did Tom Phillip accept a firm offer? (1 mark)

(ii) Give ONE reason for your answer in (b)(i) above (2marks)

(c) What do you understand by 'vehicle will be sold as is where is'? (2 marks)

(d) (i) Define the term 'breach of contract'. (2 marks)

(ii) State ONE way in which a court may settle a breach of contract.
(1 mark)

(e) State TWO ways by which a contract can be terminated or discharged (4 marks)

(f) (i) Should John Brown refund Tom Phillip's traveling expenses? (1mark)

(ii) Give ONE reason for your answer to (f)(i) above. (2 marks)

(g) (i) Advise Tom Phillip whether he will succeed in court against John Brown. (1 mark)

(ii) Give ONE reason for your advice in (g)(i) above. (2 marks)

Total 20 marks

DISCUSSION AND GUIDELINE ANSWER

* (a) You must be careful to define a contract, and not an agreement. A contract is defined as a legally binding agreement or an agreement that is created with legal intentions.

If you state that a contract is an agreement without stating any legal aspect, you may only score half of the marks, since all contracts are agreements, but not all agreements are contracts.

* (b) (i) The answer to this part of the question is simply NO.

(ii) The vehicle was not offered for sale, therefore, one cannot accept an offer that was not made. An acceptance MUST be to a firm offer.

* (c) This means that the vehicle is to be sold in the condition that it is presently in at the place or physical locality that it is at.

(d) (i) Breach of contract means that a party or parties to the contract fail to keep their part or parts to the contract.

(ii) The court can rule that the party that has breached the contract be forced to abide by their side of the contract. Or, with the injured parties agreement, the existing contract can be terminated and a new one can come into existence that satisfies all parties.

* (e) There are a number of ways in which a contract can be discharged or terminated. You are asked to state TWO ways. Some ways are suggested below:

* By death of either party to the contract

* By bankruptcy, which must be proven in the legal sense.

* By frustration, which means that something, which was possible at the time the contract was made, now becomes impossible .

* The agreed time for the contract to elapse has passed.

* By agreement of all concerned parties

* By breach. However, in this case the contract can only be terminated with the permission of the injured party.

* By law. This is when something that was legal at the time the contract was made now becomes illegal by law. Therefore, the contract must come to an end.

* (f) (i) No, John Brown should not refund Tom Phillip?s traveling expenses.

(ii) There was no contract and no breach of contract.

Tom Phillip took it upon himself to make the journey to the auction and so the cost of doing so must fall on his own shoulders

(g) (i) Tom Phillip will NOT succeed in court against John Brown.

(ii) There was no contract and there was no breach of contract. He would win the case if an existing contract had been breached.

REVISION

Next week will be the final lesson on questions on Profile One (for now at least).

You should prepare for the questions by revising management functions and responsibilities, leadership styles, functions of trade unions and forms of industrial action by employees and management?s response to these. Have a happy and safe week.

* Yvonne Harvey teaches at Glenmuir High School.