Section A

Answer Both Questions

Kendrake Limited is a food supplier to a large retail supermarket. Kendrake was approached by the supermarket who requested it should add an extra 25% volume to some produce to assist the supermarket with a special promotion. However, the price Kendrake would charge to the supermarket would remain the same. Kendrake was reluctant to enter into this agreement but felt compelled to agree when the supermarket suggested that it might affect the future business if it did not cooperate.

a)Assess whether there are any grounds for Kendrake to have the agreement set aside since it no longer wishes to provide the extra volume without some kind of compensation.

(12 marks)

b)Explain the rules that would determine the legal validity of a force majeure clause. (13 marks)

A "force majeure" clause (French for "superior force") is a contract provision that relieves the parties from performing their contractual obligations when certain circumstances beyond their control arise, making performance inadvisable, commercially impracticable, illegal, or impossible.

Total 25 Marks

Q.2.

a) Distinguish between 'a sale' and 'an agreement to sale' in supply of goods and services

(16 marks)

b) After risk passing to buyer (B), goods suffer damage. When B takes delivery, he discovers the damage. He also discovers that, even apart from the damage, the goods do not conformto the contract and the non-conformity is such that, had B contemplated, he would never have signed the contract. Examine the legal position between the parties where;

(a) The goods can be repaired. (5 marks)

(b) They cannot be repaired. (4 marks)

Total 25 Marks

Section B

Answer Two Questions

Q.3.

"It is evident that the duties owned by Agents to their Principle in Agency relationships are found in the express terms of their contract" Critically evaluate the statement expressing the relevant reference to justify the issue.(25 marks)

Total 25 Marks

Q.4.

Assume you have been appointed by the chairperson of your resident area to assist him in educating the entire residents of his area on the court hierarchy of Uganda that handle citizen petitions. He has much trust and confidence in you because he knows that you are a fresh graduate from CUU with full knowledge in law.Go on and prepare draft notes that you will use for that exercise. (not more than two Pages). (25 marks)

Total 25 Marks

Q.5.

a) What do you understand by Alternative dispute resolution? (2 marks)

b) Explain the various causes of commercial disputes in today's business world. (10 marks)

c) In many commercial business transactions, there is a tendency of parties disagreeing with one another. However, once these disagreements arise, they need to be solved. In line with this statement, explain the various ways of resolving these commercial disputes. (13marks)

Total 25 Marks

....................... SUCCESS......................