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Contract Assigment Group 3

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5 views5 pages

Contract Assigment Group 3

Uploaded by

martiasylvester
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Table of Contents

1.0 SCOPE OF THE QUESTION................................................................................................................2


2.0 (A) ISSUES RAISED............................................................................................................................2
2.1 Social and domestic arrangements..............................................................................................2
2.2 Postal rule....................................................................................................................................3
2.3 Mirror Image Rule........................................................................................................................3
2.0 (B)Whether there is valid contract based on findings above......................................................4
REFERENCE............................................................................................................................................5

1
1.0 SCOPE OF THE QUESTION
The question requires to discuss and advice on the circumstances provided in scenario basing
on social domestic agreement, mirror image rule, and postal rule and state whether a valid
contract can be formed in the situation where parties are relatives, and where mirror image
rule and postal rule are contravened

A)

2.0 (A) ISSUES RAISED


Whether a contract cannot be formed where parties are relatives

Whether a contract can not be formed where mirror image rule and postal rule contravened

2.1 Social and domestic arrangements


These are arrangements which are typically informal agreements between family members,
friends and workmates where there is generally no intention to create legal relations. These
kinds of agreements are legally not enforceable because the law presumes that social
arrangements are not intended to be legally binding, thus as it lack the fundamental element
of forming a valid contract it is regarded as just a mere social arrangement with no intention
to create legal relation.

This is supported has been supported in the famous contract case of Balfour v. Balfour.1
Where the defendant who worked in Ceylon, went to England with his wife on holiday. He
later returned to Ceylon alone, the wife remaining in England for health reasons, the
defendant promised to pay the plaintiff $30 per month as maintenance, but failed to keep up
the payments when the marriage broke up. The wife sued, it was held that the wife could not
succeed because, she had provided no consideration for the promise to pay $30 and
Agreements between husbands and wives are not contracts because the parties do not intend
them to be legally binding.2

Referring this to the scenario provided we see that the parties are relatives as it shown that
Jackson refused to accept the money and informed Juma that as they are twin brother their
agreement cannot be enforced in the court of law, By the reason provided it is true that
agreement between brothers who are regarded as relatives a general rule provides that it
cannot be enforced before the court of law because their agreement are assumed as just mere
social arrangement with no intention to create legal relation. But there are some exceptions

1
[1919] 2 KB 571.
2
Ibid.

2
such as, If a social agreement will have serious consequences for the parties, this may rebut
the presumption too as it were established in the case of Parker v. Clarke.3 Mrs. parker was
niece of Mrs. Clarke they entered into agreement that Parker would sell their house and live
with the Clarke but letter on Mr. Clarke change his Will leaving the house to the Parker, later
couple fail out and the Parker were asked to leave ,they claimed damages for breach of
contract. It was held that the exchange of letters showed the two couples were serious and the
agreement was intended to be legally binding because, the parkers had sold their own home,
and Mr. Clarke changed his will. Therefore, the Parkers were entitled to damages.4

2.2 Postal rule


The general is that they take effect when they are posted rather than when they are
communicated. According to our scenario Juma contravened with postal rule because in our
scenario Jackson required Juma to accept the offer through the post but he contravened to
follow as he let him know physically. In Tanzania postal rule is governed by the Law of
Contract Act.5 section 4(2)(a) and (b) which stipulates that communication of acceptance is
complete as against the proposer or offeror when it come is put in course of transmission to
him so as to be out of power of the acceptor and as against the acceptor, when it came to the
know of the proposer. So according to the scenario this postal rule is holds water in law for
instance when Juma failed to observed that point outed down by Jackson.

2.3 Mirror Image Rule.


according to section 7(a) of the law of contract Act provide that acceptance must be absolute
and unqualified this means that an acceptance must be complete or must match precisely with
the term of an offer, this is articulated in the case of Stella Masha vs Tanzania Oxygen
Limited6 where defendant advertise tender to sell the property on which plaintiff won .he
was required to pay Tsh 50 million within specified time. However, upon that day a certain
amount remains unpaid.

Commercial Division of High court observe acceptance of an offer must match precisely
with terms and conditions of an offer since the plaintiff could not meet the conditions set
regarding an offer there is no acceptance further court observe acceptance to constitute an
agreement must in level respect mere and correspond with the offer neither falling short or
nor going beyond the term proposed but exactly meeting them at all point. In absence of such

3
[1960] 1 ALL ER 93.
4
Ibid.
5
[CAP 345 R.E 2019]
6
[2003] TLR 64

3
acceptance parties in the contract conduct. However, in the above scenario for sale a flat the
payment should be made in cheque but Juma provided the exactly amount in cash this cannot
termed as offer match exactly with acceptance.

2.0 (B)Whether there is valid contract based on findings above


From the findings above a valid contract cannot be formed as per reasons provided that first
every contract shall have intention to create legal relation as one of the elements of a valid
7
contract, as provided under section.10 of the Law of Contract Act. On regards to social
domestic arrangements where the law presume that agreements between relatives are just
mere social arrangements which has no intention to create legal relation, so they cannot be
enforced before the court of law unless on some circumstances which acts as exceptions as
ruled in different cases. Furthermore due to the principle that the acceptance must match the
terms of an offer as proposed by an offeror and not otherwise where this process known as
Mirror Image rule which is one of the major rule governing the validity of the contract thus
when it is contravened it's directly affects the validity of the contract. The same as to the
postal rule as per section.4 of the Law of contract Act.8

7
[CAP 345 R.E 2019].
8
[CAP 345 R.E 2019].

4
REFERENCE
TABLE OF STATUTE

Law of Contract Act [Cap 345 R.E 2019]

LIST OF CASES

Balfour v. Balfour
Parker v. Clarke
Stella Masha vs Tanzania Oxygen Limited

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