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Questions and Answers
What is the primary goal of criminal law?
What is the primary goal of criminal law?
In a civil case, what standard of proof is required?
In a civil case, what standard of proof is required?
Which of the following best describes the role of a prosecutor in a criminal case?
Which of the following best describes the role of a prosecutor in a criminal case?
What is the primary objective of civil law?
What is the primary objective of civil law?
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If a defendant is found 'liable' in a civil case, what is the most likely result?
If a defendant is found 'liable' in a civil case, what is the most likely result?
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What is Ghana's legal system primarily based on?
What is Ghana's legal system primarily based on?
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Which concept is central to the distinction between criminal law and civil law?
Which concept is central to the distinction between criminal law and civil law?
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Which of the following scenarios best exemplifies the principle of frustration in contract law?
Which of the following scenarios best exemplifies the principle of frustration in contract law?
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In the context of contract law, what does 'mitigation' primarily refer to?
In the context of contract law, what does 'mitigation' primarily refer to?
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According to the Sale of Goods Act, what is the primary characteristic that defines 'specific goods'?
According to the Sale of Goods Act, what is the primary characteristic that defines 'specific goods'?
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Under which circumstance would a court most likely award specific performance as a remedy for a breach of contract?
Under which circumstance would a court most likely award specific performance as a remedy for a breach of contract?
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Which of the following BEST describes the concept of 'unascertained goods' under the Sale of Goods Act?
Which of the following BEST describes the concept of 'unascertained goods' under the Sale of Goods Act?
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Which of the following best describes the relationship between common law and case law?
Which of the following best describes the relationship between common law and case law?
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In the context of the sources of law in Ghana, what is the primary distinction between 'enactments' and 'orders, rules, and regulations'?
In the context of the sources of law in Ghana, what is the primary distinction between 'enactments' and 'orders, rules, and regulations'?
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Which of the following scenarios best illustrates the maxim 'Equity will not suffer a wrong to be without a remedy'?
Which of the following scenarios best illustrates the maxim 'Equity will not suffer a wrong to be without a remedy'?
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What is the primary objective of equity in its historical role as a supplement to common law?
What is the primary objective of equity in its historical role as a supplement to common law?
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Which maxim of equity is most directly related to the concept that one must approach a court with honesty and integrity?
Which maxim of equity is most directly related to the concept that one must approach a court with honesty and integrity?
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Under what circumstances would the principle 'Where the equities are equal, the law prevails' be most applicable?
Under what circumstances would the principle 'Where the equities are equal, the law prevails' be most applicable?
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How does the concept of 'Equity acts in personam' primarily affect the enforcement of equitable orders?
How does the concept of 'Equity acts in personam' primarily affect the enforcement of equitable orders?
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According to Article 11 of the 1992 Constitution, how many sources of law are recognised in Ghana?
According to Article 11 of the 1992 Constitution, how many sources of law are recognised in Ghana?
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What is a key characteristic feature of commercial law, according to the provided material?
What is a key characteristic feature of commercial law, according to the provided material?
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In contract law, what constitutes valid consideration?
In contract law, what constitutes valid consideration?
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What best exemplifies executory consideration?
What best exemplifies executory consideration?
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How is past consideration generally viewed under contract law?
How is past consideration generally viewed under contract law?
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In which of the following scenarios would past consideration be deemed sufficient to support a contract?
In which of the following scenarios would past consideration be deemed sufficient to support a contract?
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According to the principle in Felthouse V Bindley, when does silence not represent acceptance?
According to the principle in Felthouse V Bindley, when does silence not represent acceptance?
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What is meant by sufficiency of consideration?
What is meant by sufficiency of consideration?
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How does a unilateral contract differ from a bilateral contract, in terms of consideration?
How does a unilateral contract differ from a bilateral contract, in terms of consideration?
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In which circumstance might a promise to pay for a service after it has been provided be legally enforceable, despite the apparent past consideration?
In which circumstance might a promise to pay for a service after it has been provided be legally enforceable, despite the apparent past consideration?
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If a person performs a service with the understanding that they would be remunerated, and the service was within a business context, what type of consideration is likely at play?
If a person performs a service with the understanding that they would be remunerated, and the service was within a business context, what type of consideration is likely at play?
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Which statement correctly reflects the legal principle regarding past consideration being sufficient or insufficient?
Which statement correctly reflects the legal principle regarding past consideration being sufficient or insufficient?
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In determining whether goods or services are 'necessaries' for a minor, which of the following is NOT a primary consideration?
In determining whether goods or services are 'necessaries' for a minor, which of the following is NOT a primary consideration?
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Even if a contract with a minor is considered valid and enforceable, under what circumstance might it still not be binding on the minor?
Even if a contract with a minor is considered valid and enforceable, under what circumstance might it still not be binding on the minor?
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Which statement accurately reflects the legal stance on trading contracts entered into by a minor?
Which statement accurately reflects the legal stance on trading contracts entered into by a minor?
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According to Ghanaian law, what type of contract is considered 'voidable' by a minor?
According to Ghanaian law, what type of contract is considered 'voidable' by a minor?
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If a minor misrepresents their age to induce another party to enter a contract, what is the legal consequence regarding the enforceability of this contract?
If a minor misrepresents their age to induce another party to enter a contract, what is the legal consequence regarding the enforceability of this contract?
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Regarding contracts with mentally incompetent individuals, what is a key factor in determining the contract's validity?
Regarding contracts with mentally incompetent individuals, what is a key factor in determining the contract's validity?
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Which of these best describes the treatment of contracts entered into by a person who is intoxicated, compared to the mentally incompetent?
Which of these best describes the treatment of contracts entered into by a person who is intoxicated, compared to the mentally incompetent?
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In the context of contracts involving minors, what is a 'beneficial contract of service' primarily designed to provide?
In the context of contracts involving minors, what is a 'beneficial contract of service' primarily designed to provide?
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A minor enters into a contract to lease a large commercial building for a 5 year period. What is the most likely legal standing of this contract?
A minor enters into a contract to lease a large commercial building for a 5 year period. What is the most likely legal standing of this contract?
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Which of the following is a key difference in the legal treatment of contracts with minors compared to those with mentally incompetent or intoxicated persons?
Which of the following is a key difference in the legal treatment of contracts with minors compared to those with mentally incompetent or intoxicated persons?
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Study Notes
Commercial Law 1 - Introduction
- Commercial law encompasses rules and institutions governing commercial transactions, including banking, commerce, and contracts.
- The principal sources of commercial law are statutory laws and case law.
- Commercial law combines civil remedies and criminal sanctions, addressing issues like the sale of unwholesome goods, which can be a criminal offense under food and drug laws.
- Commercial law is both enabling – creating frameworks—and regulatory – setting standards.
Classification of Law
- Law is classified into public law and private law.
- Public law deals with the relationship between the state and citizens, including constitutional law, administrative law, and criminal law.
- Private law deals with relationships between individuals, including the law of torts, property law, and the law of trusts.
Distinction Between Criminal and Civil Law
- Criminal law aims to punish wrongdoers, deter future crimes, and achieve retribution for wrongs.
- Civil law pursues a remedy to redress or compensate the injured party, not punishment.
The Legal System of Ghana
- Ghana's legal system is based on the common law tradition.
- The common law is based on judicial precedents.
- Ghana's courts are structured with superior courts and lower courts.
Sources of Law in Ghana
- The 1992 Constitution is a primary source of law in Ghana.
- Enactments made by the parliament established by the 1992 Constitution, like the Banking Act, are also significant.
- Orders, rules, and regulations made under the authority of the Constitution (e.g., by local assemblies) are also sources of law.
- Existing laws from before the 1992 Constitution (e.g., the Contracts Act, 1960) remain part of the legal framework.
- Common law, equity, and customary law also contribute to the legal landscape.
The Common Law and Equity
- Common law, sometimes referred to as "case law," is law made by judges through court decisions rather than through legislation.
- Equity supplements common law where the common law's application would be overly harsh, aiming for fairness instead.
Maxims of Equity
- Equity will not suffer a wrong to be without a remedy.
- Equity follows the law.
- Where the equities are equal, the law prevails.
- Where the equities are equal, the first in time shall prevail.
- He who seeks equity must do equity.
- He who comes to equity must come with clean hands.
- Delay defeats equity; equity aids the vigilant but not the indolent.
- Equality is equity.
- Equity looks to the intent and not to the form.
- Equity looks on as done that which ought to be done.
- Equity imputes an intention to fulfill an obligation.
- Equity acts in personam.
What is Commercial Law?
- Commercial law deals with how commercial transactions are conducted, including banking, contracts, and commerce itself.
- It has varied characteristics, including being based on contract, and incorporating civil remedies and criminal sanctions.
Relevance of Law in Commercial Activities
- Law clarifies rights and obligations in business planning.
- Legal frameworks help assess risks in commercial activities.
- Regulatory compliance is crucial for business operations.
- Clear laws prevent costly and unproductive business practices.
Law of Contract - Introduction
- Human interaction often involves trade-offs of wants and needs, leading to promises and agreements.
- The exchange of promises is a key aspect of contracts.
- Society requires contracts for enforcement of promises to ensure functioning relationships and transactions operate smoothly.
Law of Contract - Sources
- English common law principles, doctrines of equity, and relevant statutes like the Contracts Act, 1960, shape the law of contract in Ghana.
Law of Contract - Doctrines
- Freedom of Contract: individuals are free to enter contracts without undue influence.
- Vitiating factors (e.g., fraud, mistake, misrepresentation, duress) can render contracts unenforceable.
- Sanctity of Contract: parties generally have an obligation to uphold agreements.
Law of Contract - Definitions
- A contract is defined by existing legal opinions and frameworks, with a shared focus on promises binding by law and the remedies offered for broken agreements—whether these revolve around the obligation of performance, or a required specific legal action to compensate for a breach.
Law of Contract - Forms of Contract
- Contracts can be oral, written, or implied from conduct.
- Unilateral contracts require an act to be performed for a returned promise. Formal contracts involve a formal procedure. Implied contracts are inferred from the conduct of the parties. Executed contracts have been fully performed, while executory contracts await completion. Void, voidable, and unenforceable contracts have limitations concerning their enforceability in court concerning their validity. A quasi-contract does not involve express or implied promises.
Law of Contract - Elements of a Valid Contract
- Offer and Acceptance (Agreement): A valid offer must be clearly communicated and accepted.
- Intention to Create Legal Relations: parties must intend to form a legally binding contract.
- Capacity to Contract: Parties must have legal capacity to enter into a contract.
- Consideration: Something of value must be exchanged between the parties.
Law of Contract - Vitiating Factors
- Factors that can render contracts void or voidable, including mistake, misrepresentation, undue influence, and duress.
Law of Contract - Terms of Contract
- Terms define the scope of contractual obligations and can be express (stated clearly in the contract).
- Implied terms often arise by the course of dealing, or from the specific nature of the contract.
Law of Contract - Rights and Remedies for Breach of Contract
- Recovering damages from a breaching party is commonly a legal remedy.
- The injured party can sue for an injunction (court order to perform, or prevent) actions).
- Specific performance (court order requiring performance of contractual duties) and rescission (termination of the contract) are potential remedies.
Law of Contract - Discharge of Contract
- Contract discharge occurs when the contract ceases to be binding.
- Discharge by agreement, performance, impossibility (frustration), and breach are key methods leading to contract discharge.
Sale of Goods - Introduction
- A sale of goods contract involves a transfer of ownership in goods against consideration.
- Contracts of sales can be by word of mouth, in writing, or implied.
- Goods include movable property—including growing crops.
Sale of Goods - Types of Goods
- Specific goods are identified at the time of the contract.
- Unascertained goods are not identified at the time of the contract, which occurs at or after a point of transaction.
Sale of Goods - Price
- Price is the consideration for the sale of goods.
- Price can be fixed in the contract, agreed between the parties or a reasonable price implied in the circumstances of the transaction.
Sale of Goods - Forms of Sale
- Sale in market overt involves a sale at a recognized trade market with good-faith caveats.
- Sale to a part owner, which is considered valid under Ghanaian law.
- Sale or return contracts provide an option to purchase or return goods.
- Sale by sample and sale by description refer to cases where goods are identified through samples or descriptions, rather than their physical presence in the marketplace.
Sale of Goods - Duties and Responsibilities
- Seller's duties include delivery of goods, merchantability, suitability, correct quantity, and fulfilling delivery obligations within the applicable timeframe.
- Buyer duties involve accepting the goods, and paying in accordance with the agreed price and specifications.
Sale of Goods - Remedies for Unpaid Seller
- Lien over goods, stoppage in transit (a right of the seller to prevent the delivery of goods already in transit)—the right of a seller to stop goods from being shipped), resale, and recovering possession are valid remedies if the price is not paid.
- Sellers have personal legal rights to take action against buyers for their failure to pay the agreed amounts, including suing for the price or damages.
Sale of Goods - Remedies for Buyer
- A buyer's rights include rejecting goods if they fail to conform to the agreement, such as non-conformity or a breach of warranty.
- Actions can be taken concerning a specific breach of a contract.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Introduction & Definitions
- A Hire Purchase contract involves a series of rental payments with the option to buy.
- Ownership initially remains with the seller but will transfer upon full payment. - Conditional sale contracts require a purchase price payable in installments, and remain subject to certain rules or safeguards regarding the sale of the goods in question.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Components
- Contract of bailment: the buyer takes possession, but ownership remains with the seller.
- Option to buy: the buyer has the right (upon payment) to become the owner.
- Contract for conveyance in which the seller transfers ownership to a buyer.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Formal Requirements
- Requirements must be in writing, and state terms relating to cash price, installment amounts, dates of payment, description of goods.
- A copy of the agreement must be delivered to the buyer.
- Certain provisions are excluded to avoid exploitation or unfair practices.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Termination & Completion
- Either party can terminate a hire purchase or conditional sale agreement before the final payment.
- If the agreement is terminated, the buyer is usually liable to pay back some specified amount.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Protected Goods
- Protected Goods are those where possession with partial payment has been made and ownership has not yet been transferred. Ownership will not transfer to the buyer until full payment has been received by the seller; the buyer can only recover possession following these specific conditions regarding the amount paid.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Terms, Duties and Rights
- Implied conditions can relate to quiet possession, goods being free from encumbrance, merchantability, and fitness.
- The seller is usually liable if there are defects in quality.
- The hirer usually has the right to terminate the agreement.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Third Party Rights
- A third party who purchases hire-purchase goods from the buyer may retain possession for a specified duration.
- They may have the right to recovery under specific circumstances, or a degree of safeguarding in which the initial seller may still have some claim or compensation.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Limitations on Enforcement
- Some provisions are not legally enforceable to avoid exploitation.
HIRE PURCHASE AND CONDITIONAL SALE AGREEMENTS - Duties
- Duties of the hirer may include informing the seller of issues relating to the goods in question, and refraining from removing ownership or possession of the goods from specified jurisdictions.
- Obligations to the seller may include repaying installments within a specified timeframe.
AGENCY - Introduction
- Agency is a contractual relationship where one party (agent) acts on behalf of another party (principal).
- Agents have authority to perform actions for principals.
- The actions of an agent affect the principal in legal terms, and a third party can take action against the principal depending on the contracts in place.
AGENCY - Types of Agents
- General agents have authority to perform various acts on behalf of the principal.
- Special agents have defined authority for specific actions. Professional agents (such as mercantile agents, brokers, auctioneers, and del credere agents) are specialized and involved in particular business transactions..
AGENCY - Creation of Agency
- Agency can be created by mutual agreement, by operation of law, or by ratification—where a principal accepts the act of an intermediary.
AGENCY - Express and Implied Agency
- Express agency arises from a formal agreement, whether conveyed by written, oral or implied contract (where conduct between parties conveys an understanding of the relationship).
- Implied agency occurs when an agent acts in line with the mutual understanding among parties to a contract (through conduct), with necessary implications drawn from the relationship of the parties.
AGENCY - Authority of Agents
- Agents possess authority through actual, usual, customary, or apparent authority.
AGENCY - Actual Authority
- Actual authority is the explicit or implicit consent granted to an agent by the principal.
AGENCY - Usual Authority
- Usual authority relates to the customary powers or practices of an agent in a specific trade or profession.
AGENCY - Customary Authority
- Customary authority derives from standard practices within a specific location or market.
AGENCY - Apparent Authority
- Apparent authority arises from the principal's actions or conduct that lead a third party to reasonably believe an agent possesses certain authority to act on the principal's behalf.
- The third party is protected in good faith, thus reducing possible damages in a contractual dispute for the third party if the apparent authority was not actually in place.
AGENCY - Incidental/Presumed Authority
- Incidental authority is the implicit power necessary for the performance of tasks required by the agent's primary authority or role.
- Presumed authority arises from established relationships (e.g., husband-wife, professional contexts).
AGENCY - Agency by Operation of Law
- This type of agency occurs due to specific factors such as necessity or cohabitation (necessity or partnership).
- The law creates an agency, irrespective of whether the actual parties had a prior agreement or not.
AGENCY - Agency of Necessity
- Agency of necessity arises when unforeseen circumstances necessitate an agent's actions for the principal's benefit.
- Agents must act reasonably.
AGENCY - Agency by Cohabitation
- This agency type presumes certain implied authority in marital relationships (e.g., obtaining necessaries for the household).
AGENCY - Agency by Ratification
- A prior act of an unauthorized agent can be adopted by a principal.
- Principal can ratify an agent's acts, giving retrospective effect to a previously unauthorized action, making the contract legitimate.
- The principal must have capacity to ratify, consent to the act of the agent, have full knowledge of the related facts and the contract must be valid for the ratification to apply.
AGENCY - Obligations of Agency
- Duties of agent typically include exercising reasonable care, skill, and loyalty towards the principal.
- Agents must adhere to the principal's explicit instructions, must not delegate their authority or duties to a third party without express permission from the principal.
- Principals are responsible for paying agreed amounts—whether commissions or expenses.
- Principals must compensate agents for lawful authorized actions.
AGENCY - Rights of the Agent
- Agents have rights against the principal for payment of compensation or expenses, and may be able to exercise liens regarding unpaid debts or services.
- These rights are limited or terminated depending on whether the agency was open or unknown concerning the principal's identity concerning the third-party.
AGENCY - Rights of the Principal
- Principals have rights against agents concerning breaches, including compensation for damages, recovering secret profits, ending the agency or rescinding contracts, or collecting unpaid amounts.
AGENCY - Effects of Agency
- An agency relationship affects the principal's legal stance in specific transactions and contractual interactions.
- The two types of agencies (disclosed and undisclosed) have unique considerations and effects in relation to the principal or the agent.
AGENCY - Termination of Agency
- Agency relationships may end at the parties' mutual consent or agreement, by revocation, or implicitly due to factors like death.
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Test your knowledge on the fundamentals of criminal and civil law. This quiz covers key concepts, objectives, and principles in both areas of law, including the roles of prosecutors and the Sale of Goods Act. Challenge yourself and see how well you understand these legal topics.