Description

Commercial Transactions

QUESTION ONE

1. Aminata agreed to sell to Baraba, at a price, a supply of mangoes, product of neighbouring country. Delivery was agreed to be weekly over two months effective from two weeks after the date of execution of the contract. On five occasions, Baraba took the consignments: but later, when Aminata sought to deliver the subsequent consignments as contracted, Baraba declined to accept the mangoes saying that since the market prices of mangoes had fallen drastically he could not, indeed it would unfair to expect him to, accept the mangoes at the contract price. He sought to renegotiate the price, a proposal Aminata flatly refused to consider.

Advise both parties as to their rights and remedies, if any.        (8 marks)

1. An auctioneer was instructed by Jeweli Limited to sell certain jewellery at a price of not less than On the day of the auction no one seemed to be interested in the jewellery. At about closing time, he received the highest bona fide bid of Kshs.190,000/=, an amount which Jeweli has refused to accept.

Advise on:

1. i) The validity of the auction; and ii) Whether the auctioneer is liable to Jeweli Limited.         (7 marks)