May 2014 -INTRODUCTION TO LAW

Some candidates did not perform well in the following questions:

Question No. 2

In which candidates had difficulties explaining three consequences of contravention of the provision where the owner shall not enforce any right to recover possession of the goods from the hirer in a hire purchase contract. In addition, candidates had difficulties describing three exceptions to implied agency. Candidates had further difficulties discussing four circumstances under which the government might not be held liable in tort.

The following were some of the expected responses from candidates:

• Consequences of contravening the two-thirds rule:-
–– The hire-purchase agreement if not previously terminated shall terminate.
–– The hirer shall be released from all liability under the agreement and shall be entitled to recover from the owner by suit all sums paid.
–– A guarantor shall be entitled to recover from the owner by suit all sums paid by him under the contract of guarantee.

• Exceptions to implied agency:
–– Agency by necessity; where the principal was available for contact but was not contacted, he may repudiate the agency.
–– Agency of the wife; where the husband proves that the wife was well supplied with such goods and he has given notice to the trader.
–– There is no authority for a separated wife to pledge the husband’s credit.
–– Agency by estoppel; where the principal gives notice to the outside world that the agent is no longer working for him.

• Circumstances when the government might be excluded from liability in tort:
–– The government is not liable in respect of anything done or omitted to be done by any person while discharging responsibilities of a judicial nature.
–– It is not liable if the government officer was acting outside the scope of his ordinary duties.
–– In proceedings against the government, the court cannot make a declaratory order.
–– The government cannot be held liable if it refuses to produce documents on grounds of public interest.
–– No claim for tort can be brought against the government after 1 year from the date the cause of action arose.

Question No. 3
in which candidates had difficulties analysing the legal principles in a case where an insured person gives false information in an insurance contract and the insurance company refuses to honour a claim by the insured person. In addition, candidates had difficulties highlighting three contents of an invitation to tender in relation to public procurement. Candidates had further difficulties outlining four advantages of registering an “invention” in the context of intellectual property.

Candidates were expected to bring out the following points, among others:

• Legal principles applicable in the insurance case:
–– Insurance contracts are contracts of utmost good faith.
–– The insured must faithfully disclose all facts known to her/him so that the insurer can decide whether to insure or not.
–– Beatie Osolika committed fraudulent misrepresentation when he lied about his pregnancy status.
–– Misrepresentation does not render the contract void but the party misled will be able to avoid liability on the contract by proving that the misrepresentation was of a material fact.
–– Hope Insurance Company can escape liability by relying on misrepresentation of Beatie Osolika’s health status which misled them to enter into the insurance contract.
–– The medical cover was based on fidelity/utmost good faith (as a fundamental fact).
–– Beatie Osolika cannot successfully sue.

• Information to be contained in an invitation to tender:
–– name and address of the procuring entity.
–– the tender number.
–– how the tender documents may be obtained, including the fee payable.
–– where and when the tenders must be submitted.
–– where and when tenders will be opened. –– a statement that those submitting tenders or their representatives may attend the opening of tenders.

• Advantages of registering an invention:
–– to protect one’s invention from privacy.
–– to reward the creative effort of the inventor.
–– acts as an incentive to innovation and increased economic activity.
–– acts as a means of informing other players in the industry about the latest technical advances.