Introduction to Contract Law and Nigerian Legal System
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Questions and Answers

Which of the following is NOT a source of law as described in legal terminology?

  • Treaty
  • Preference (correct)
  • Constitution
  • Custom
  • Formal sources of law provide validity to the law.

    True

    Name one of the categories into which sources of law can be classified.

    Formal

    The writings of lawyers are considered a type of historical source of law, which is a __________ source.

    <p>material</p> Signup and view all the answers

    Match the following legal concepts with their descriptions:

    <p>Formal Source = Gives validity to the law Material Source = Origin of the substance of the law Historical Source = Writings of legal scholars Authoritative Source = Source of legal authority referenced in court</p> Signup and view all the answers

    What does a source of law primarily signify?

    <p>A point of origin for law</p> Signup and view all the answers

    Material sources of law are concerned with the validity of the law.

    <p>False</p> Signup and view all the answers

    What term is used to describe the classification of law sources that emphasizes their authority?

    <p>Authoritative</p> Signup and view all the answers

    What does substantive autochthony refer to?

    <p>The contents of the legislation</p> Signup and view all the answers

    Formal autochthony is related to the contents of legislation.

    <p>False</p> Signup and view all the answers

    What are the two aspects of autochthony?

    <p>Formal Autochthony and Substantive Autochthony</p> Signup and view all the answers

    An agreement between parties for the exchange of promises or performances is known as a ______.

    <p>contract</p> Signup and view all the answers

    Which of the following best describes the term 'Sources' in the context of legal research?

    <p>The origin of legal concepts and governmental institutions.</p> Signup and view all the answers

    Freedom of contract allows parties to create any agreement they desire, regardless of legality.

    <p>False</p> Signup and view all the answers

    What did the Supreme Court case of Merchant Bank Nigeria Ltd. v. Adalma Tanker confirm about contracts?

    <p>The parties are bound by their agreements and the court will not rewrite the contract for them.</p> Signup and view all the answers

    What is required for a party to have any liability to pay in an entire contract?

    <p>Complete performance</p> Signup and view all the answers

    A builder can recover payment for work done even if the contract is not completed, provided that the owner benefits from the work.

    <p>False</p> Signup and view all the answers

    What is the term used for the doctrine that allows payment for a contract that has been largely completed but not in its entirety?

    <p>substantial performance</p> Signup and view all the answers

    In Cutter v. Powell (1795), the seaman's executors could not claim wages because the contract was not fully ______.

    <p>completed</p> Signup and view all the answers

    Match the following terms or concepts with their correct definitions:

    <p>Quantum Meruit = Payment for what has been done Substantial Performance = Completion of the contract in all but an insignificant part Entire Contract = Requires complete performance for any liability Stage Payments = Payments made at specific milestones of a contract</p> Signup and view all the answers

    What was the primary issue in the case of Miles v. Wakefield Metropolitan District Council?

    <p>The legality of the employer's salary deductions.</p> Signup and view all the answers

    Which of the following allows for partial payment due to incomplete performance?

    <p>Quantum Meruit</p> Signup and view all the answers

    An employer can reject partial performance of a contract and refuse to pay anything at all.

    <p>True</p> Signup and view all the answers

    Express words in a contract can exclude the application of substantial performance.

    <p>True</p> Signup and view all the answers

    A ship-owner cannot recover freight if the goods are not carried to the agreed ______.

    <p>destination</p> Signup and view all the answers

    What happens if a negotiable instrument is dishonored?

    <p>The creditor can sue for the value of the dishonored instrument or revert to the original contract.</p> Signup and view all the answers

    A contract may require payment in a certain manner or at a certain __________.

    <p>time</p> Signup and view all the answers

    Match the following cases with their key outcomes:

    <p>Miles v. Wakefield = Employee salary deductions upheld Wiluszynski v. Tower Hamlets = Rejecting partial performance is permissible Contract law = Payments may be required in legal tender Dishonored instrument = Creditors can revert to original payment obligations</p> Signup and view all the answers

    In Wiluszynski v. Tower Hamlets, what did the employer notify the employees regarding their work?

    <p>Work would be deemed voluntary and unpaid.</p> Signup and view all the answers

    If a contract is divisible, the court treats completed parts as entire for payment purposes.

    <p>True</p> Signup and view all the answers

    If no specific payment provision exists, payment must be made in __________ tender.

    <p>legal</p> Signup and view all the answers

    What is NOT considered a valid form of consideration in a contract?

    <p>Illusory promises or agreements</p> Signup and view all the answers

    Unequal bargaining power automatically makes a contract voidable.

    <p>False</p> Signup and view all the answers

    What legal principle addresses the issue of unfair or oppressive conduct in contracts?

    <p>Unconscionable bargains</p> Signup and view all the answers

    A contract's essence is to establish the terms of a sale or exchange of goods and services between __________.

    <p>parties</p> Signup and view all the answers

    Match the following legal terms with their definitions:

    <p>Consideration = A valuable deliberation that ensures a contract is valid Privity of Contract = Contractual obligations owed to the parties involved Bargain = The arrangement of terms for goods and services Vitiating Factors = Conditions that render a contract void or voidable</p> Signup and view all the answers

    What does 'freedom of contract' refer to?

    <p>The right of parties to agree to the terms they choose</p> Signup and view all the answers

    Duress of goods is unrelated to the concept of bargaining power in contracts.

    <p>False</p> Signup and view all the answers

    What may prevent an agreement from operating as a contract?

    <p>Factors such as illegality, lack of capacity, or absence of consideration</p> Signup and view all the answers

    What is the primary effect of a creditor requesting a debtor to pay a third party?

    <p>The debt is discharged</p> Signup and view all the answers

    Proof of payment is only accepted in the form of a receipt.

    <p>False</p> Signup and view all the answers

    When must a debtor pay if nothing is stated about the time of payment?

    <p>When the work is completed and the debtor has had a reasonable opportunity to inspect it.</p> Signup and view all the answers

    The place of payment is the place of business or residence of the __________.

    <p>creditor</p> Signup and view all the answers

    What must happen for a third party to discharge a debt?

    <p>The debtor must authorize the payment</p> Signup and view all the answers

    A partnership is formed by the informal agreement between two parties.

    <p>False</p> Signup and view all the answers

    What are the key components typically covered in a business partnership agreement?

    <p>Business decisions, disputes, profits and losses, contracts and ownership changes, and termination of the partnership.</p> Signup and view all the answers

    Match the following terms with their correct descriptions:

    <p>Debtor = The party that owes money Creditor = The party to whom money is owed Partnership = An agreement between two or more parties Dissolution = Ending of a partnership</p> Signup and view all the answers

    Study Notes

    Introduction to Contract Law

    • A contract is a legally binding agreement between two or more parties.
    • It creates mutual obligations enforceable by law.
    • Essential elements, at common law, include: offer, acceptance, intention to create legal relations, and consideration.
    • The system is a relic of British imperialism.
    • English law largely displaced traditional systems.
    • Lagos was established as a British colony in 1862.
    • A court was set up, and five ordinances were initially applicable.
    • These ordinances included laws on customs duties, harbor regulations, harbor sanitation, currency, and official seals.
    • Further ordinances regarding the legal profession followed in 1864-65, including Supreme Court ordinances.
    • Colonial legacies have persisted in Nigeria until today.
    • The English legal system was eventually established in 1862 with 25 ordinances.
    • The 1960 independence is yet to fully perfect the legal domain.

    Sources of Law

    • Constitutions
    • Statutes and ordinances
    • Rules and regulations
    • Case law
    • The term "Source(s)" in legal research refers to the origin of legal concepts and ideas, governmental institutions formulating legal rules, and published manifestations of law.

    Classes in Sources of Law

    • Formal sources give validly to the law.
    • Material sources concern the origin of the substance of law.
    • Historical sources include writings of lawyers (e.g., foreign law rules), that serve as persuasive authority rather than forming part of local law until enacted.

    Theories of Sources of Law

    • Consensus Theory: A legal system stems from societal consensus on norms, rules, and values.
    • Conflict Theory: Society's competing groups shape legal systems, influenced by the powerful.

    Other Theories (Middle Course)

    • Autochthonism relates to the native origin of the law, considering whether a law is indigenous. Formal and substantive are two aspects
    • Nigeria has a presidential system of democratic governance.
    • The President also serves as head of state.
    • Three branches of government include the Executive, Legislative and Judiciary, with respective powers.

    Constitution

    • Nigeria has a written constitution, the 1999 Nigerian Constitution.
    • Key features include presidential form of government, separation of powers, federalism, rule of law, and supremacy of constitution.

    System of Governance

    • Nigeria operates with a presidential system, with the head of government also acting as head of state.
    • These powers are distinct from other branches.

    Structure

    • Legislative power resides in the National Assembly.
    • Executive power rests with the President.
    • Judicial power is vested in the federal courts, including the Supreme Court of Nigeria.
    • Nigeria's legal system is 'mixed', drawing from English law, common law, customary law, and Sharia (Islamic) law.
    • Key sources of Nigerian law include its Constitution, legislation (Ordinances, Acts, orders), received English law, customary law and Islamic law
    • Legal precedents are also important sources.

    Forms of Alternative Dispute Resolution

    • Alternative Dispute Resolution (ADR) includes methods such as conciliation, mediation, arbitration, neutral evaluation, settlement conferences and community dispute resolution programs to settle disputes without court litigation.
    • Forms such as mediation, arbitration and facilitation are considered in the context of ADR.

    Contract Law Principles

    • Contract agreement and exchange of promises and their conditions, legality, intention, capacity, and consideration are key aspects
    • There are three basic elements: Agreement (offer and acceptance), contractual intention, and consideration.
    • Freedom of contract exists but is subject to constraints like public policy concerns.

    Principles of Contract Law

    • Contracts are considered unique due to the freedom to vary terms.
    • Formation, privity, construction, vitiating factors, discharge and remedies are key aspects.

    Consideration

    • Consideration is an executor when there is an exchange of promises to perform acts in the future.
    • Often a part of commercial contracts and transactions.
    • Must not be illegal, immoral or contrary to public policy.
    • An intention to create a legal relationship is essential for a valid contract.
    • The basic rule is that the parties must intend to be legally bound and must comply with certain conditions.
    • Otherwise, a court will not enforce the contract.

    Performance in Contract

    • The cardinal rule is that the contract must be performed exactly as agreed.
    • Minor deviations from the contract can be considered breach of contract leading to damages.
    • ‘Time is of the essence’ in contracts where stated or implied to ensure performance within a reasonable time.

    Partial Performance

    • If an entire contract is only partially performed, the innocent party can claim damages for the part that wasn’t completed.
    • If the other party has taken benefit, the courts will likely imply a new agreement.

    Standard form of contract

    • Standard form contracts are agreements that use pre-printed forms with non-negotiated provisions.
    • Generally, the dominant party sets the terms

    Other Business Law Principles

    • Business law deals with buying, selling, commerce, trade and, importantly, the contract law principles which underpin all business activities.
    • Business law principles may include partnership, corporation and dissolution principles.
    • Standard contract implications in particular industries, like construction, and the potential for amendments.
    • Alternative Dispute Resolution (ADR) as a method for resolving business disputes, and the roles of judges exploring those avenues.

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    Description

    This quiz provides an overview of contract law and its essential elements, along with a brief history of the Nigerian legal system influenced by British colonialism. Explore the relationships between laws, ordinances, and the evolution of Nigeria's legal framework since independence.

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