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BBA 170- Contract Law Assignment Answers

 

QUESTION ONE

Mulberry Jam Ltd is looking to expand its fruit preserve business. They get in touch with Marmalade Mango Inc., in Singapore, to see if they can set up shop there. Marmalade Mango Inc. agree provided that Mulberry Jam Ltd can send certain equipment to them by mid-April, in time with the seasonal harvest. The companies enter into an agreement and surrender some funds to a portfolio manager. On 19 March, Mulberry Jam Ltd and Reliable Logistics Ltd enter into a contract for the delivery of farming equipment from Lusaka to Dar es Salaam. The essential terms of the contract are that:

• “the goods  must  reach the  port  by  13  April  2020  before  04:30  am  in  order  to determine freight and load calculation before being shipped to the next destination.

• Payment from Mulberry Jam Ltd will only be made on complete performance by Reliable Logistics Ltd.”

On 6 April 2020, Lweendo, one of the directors for Reliable Logistics Ltd takes a flight to Dar es Salam and waits for the goods to arrive. He meets up with various partners of the company and concludes the relevant transactions. On 8 April at around 09:30 am, Lweendo gets word that the vehicle carrying the farming equipment has broken down in the Dar es Salam Central business district. He tries to contact Samson and Maxwell, the other two directors at the head office in Lusaka but neither one picks their phone nor returns the call. On 9 April Lweendo instructs the drivers to some of the pawn the farming equipment to raise funds to fix the vehicle (hopefully to be replaced at a later date by Reliable Logistics). The drivers sell more than half of the goods and raise enough money. They fix the vehicle and get to the port by 13 April at 03:45hrs. When the goods arrive in Singapore, the directors of Marmalade Mango Inc. reject the goods and state that they will sue Mulberry Jam for breach of contract.

1. Advise the relevant party/parties. [15 MARKS]
2. Explain in general terms, the remedies for breach of [15 MARKS]

[TOTAL 30 MARKS]

 

BBA 170- Business Law Assignment Question and Answers

 

QUESTION TWO

Robert and his 7-year-old twins, Roberta and Robert Jnr, love to spend time together on weekends. They usually go to “Carrey’s Cookies” where they eat chicken pie, and down it with “Carrey’s Cola and Cookies” special. On 18 April 2020, the trio is at Carrey’s. Halfway through the meal, this conversation ensues:

Robert: “Roberta, how many times do I have to tell you? Take that thing out of your mouth. It’s dirty and you can easily swallow it…and you? What’s the problem sonny? You’re very quiet today.”

Robert Jnr: “Daddy, I don’t feel well…and this drink tastes…soooo bad…” *shakes bottle*

Roberta: “Mmmhhmmm! Look, what’s that inside?!”

Robert grabs the drink from his son and pours it out, a small dismembered corpse drips onto the ground with the rest of the contents.

 

Roberta: “HAHAHAAHHAAHAAH!!!!!! You ate a frog! HAHAHAHA!!!!!”

Robert: “Are you okay Bobby? Open your mouth, let me see…Robbie be quiet!”

Roberta: “HAHAHAAHA!!!!…FROG BOY!!! HAHAHAHA!!!”

Robert Jnr: “DAAAADDDDYYYY!” *crying tearfully*

Robert: “Can everyone just be calm, just be quiet…PLEASE?!”

Roberta: HAHAHA-hrrrk..hahaha…hrrr…Daddy…bleehh…Da…hrrkk.*GASP.*tugging at

Robert’s shirt

Robert: What?…I’m busy here, can’t you see?? What, Robbie?! WHAT?!

Robert finally turns and sees that Roberta is choking. She is rushed to Farlen’s Teaching Hospital (FTH) for emergency medical attention.

At the hospital, Robert Jnr’s condition has worsened and he is admitted for observation. With regards to Roberta, an x ray reveals that a bottle top has lodged at the top of her oesophagus. As the child is clearly in distress, Dr Suwi, who attends to the child, takes her to theatre and decides to perform an esophagoscopy (a tube with a light and the tube is pushed inside to locate the foreign body and then to hook it out through the mouth or push it down towards the stomach). The procedure is not successful, in fact, the bottle top is pushed further down and this causes massive arterial bleeding which necessitates a blood transfusion.

The bottle top is eventually removed on 26 April 2020 by Dr Davey who conducts a thoracotomy (operation which involves the opening of the chest wall and the oesophagus). Unfortunately, Roberta dies two days later from heavy bleeding, with her father at her bedside.

Dr Davey: “Whilst it is not entirely clear what caused the bleeding, the medical report suggests that the oesophagus had been perforated either by the Carrey Cola cap or by the first procedure.”

Robert: “Huh?”

Dr Davey: “Our understanding of this evidence is that even if the esophagoscopy procedure had not been attempted, the nature of the foreign body that had been swallowed by the child could have perforated the oesophagus.”

Robert: “Nonsense! First of all, don’t refer to my daughter as “the child”. She has a name. She has a personality. She has a twin. She is not a piece of cardboard. Secondly, this is all your fault and you just don’t know how to do your jobs properly!”

Distraught, Robert is unable to deliver the terrible news to his wife, Seda. Dr Davey asks Nurse Joan to deliver the news of “the other twin”. Nurse Joan calls and tells Seda that the twins had died. Seda is so shocked at the news of losing both her children that she collapses and bangs her head thereby resulting in severe head injury.

Later that week, Robert Jnr’s lab tests reveal that he ingested a combination of toadstool (poisonous mushroom) and some kind of frog toxin. He is in hospital for weeks for special treatment.

1. Advise Robert and Seda on the prospects, if any, of a claim against Carrey’s Cookies. [15 MARKS]
2. Advise Robert and Seda on the prospects, if any, of a claim against FTH. [15 MARKS]
3. Advise Seda on a possible claim she can make for her injuries, if any, and the likelihood of success. [15 MARKS]
4. What is the most identifiable difference between the law of contract and the law of torts? [5 MARKS]

[Total 50 MARKS]

QUESTION THREE

Mr Chilemba is a small-scale farmer in the Mkushi District of the Republic of Zambia. In order to expand his farming activities, he approaches Calendar Bank (the Bank) for a loan of K75,000 on 23 April, 2019 repayable on 31 October, 2019.

In view of the fact that the Bank was unwilling to advance the loan to Mr Chilemba, his former classmate at University: Isacc Mabunda, makes an undertaking to the Bank that, should Mr Chilemba fail to pay back the loan on the due date, he will settle the amount. The Bank thereafter proceeds to advance said loan to Mr Chilemba.

On 31 August, owing to Mr Chilemba’s extravagant expenditure at the post 93rd Agricultural and Commercial Show festivities, he was only able to save K15, 000 towards settling the loan. Isaac does not want to have anything to do with the transaction, and requests that he be left in peace. The Bank approaches your consultancy on how it should proceed.

Please explain to them the relevant legal principles and advise accordingly.

[20 MARKS] [GRAND TOTAL 100 MARKS]

 

 

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