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2. (a) (i) Define the term ‘simple contract’.

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(2 marks)

(ii) Describe the THREE characteristics of a specialty contract.

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(6 marks)

(b) Outline what is meant by EACH of the following conditions of offer and acceptance
relating to a contract:

(i) Offer

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(2 marks)

(ii) Counteroffer

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(2 marks)

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01240020/MJ/CSEC 2022
‘‘*’’Barcode Area”*”
Sequential Bar Code
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(c) Briefly explain ONE way in which a contract may be terminated or discharged.
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(2 marks)

(d) Doris offers to sell Mark one of her cars. She intends to sell him the red five-year-old
Tomato Excel but Mark thinks she is selling him the yellow three-year-old Scotch Bonnet
Deluxe, which he told Doris he liked very much. Mark sends his mechanic to check the
car. The mechanic returns and tells him that the car is in very good working condition.
Mark pays Doris for the car by way of a manager’s cheque. However, when the car is
delivered, it is the Tomato Excel instead of the Scotch Bonnet Deluxe. Mark is convinced
that Doris tricked him and plans to sue her.
(i) State the legal term used to describe the situation that has occurred between Doris
and Mark.
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(1 mark)

(ii) Suggest THREE actions that could have been taken by either Doris or Mark to
prevent this situation from occurring.
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(3 marks)

(iii) Recommend TWO ways in which the situation could be settled without Mark
taking legal action.

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(2 marks)

Total 20 marks

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01240020/MJ/CSEC 2022
‘‘*’’Barcode Area”*”
Sequential Bar Code