The law of contract is based on law of Contract Act Cap 23. It lays down the legal rules relating to promises, the formation, performance and their enforceability. According to Sir William Anson, a contract is a legally binding agreement between two or more parties by which rights are acquired by one or more acts or forbearance on the other or others.

Required:

(i)Peter made an offer to purchase John's Car. However, John upon accepting the offer he was informed by Peter that the offer has been terminated. John does not understand. Advise John on ways if any by which an offer can be terminated. (10 marks)

(ii)"It is always necessary to communicate acceptance of an offer to the other party to the contract". With reference to the above statement, evaluate legal requirements of a valid acceptance. (5 marks)

(Total: 15 marks)

QUESTION TWO

(a)In relation to the law of Agency, critically assess circumstances under which an agent may be held personally liable to third parties (10 marks)

(b)Kenya's new constitution was promulgated on 27^th August 2010, replacing the old constitution one that had been in place since Kenya's independence in 1963 and was heralded globally as one of the most progressive constitution in the modern era.

Required:

Justify why the constitution is considered supreme over other sources of law.