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  • 20 Marks

BCL – May 2017 – L1 – Q2 – Contract Law

Evaluate the likelihood of success for legal actions based on an advertisement offering a reward for product effectiveness.

On 20 November 2015, the ‘Daily Graphic Newspaper’ advertised a promotion sale for Dabenda Company Limited stating that the Company’s “Miracle Balm” was capable of treating boils and foot-rot and that whoever bought the product and used it per the prescription without the boils and foot-rot disappearing would be entitled to GH¢200.00. Pursuant to that promise, the Company gave a standing order to its bankers on that pledge. The promotion sale was due to end on 19 November 2016.

Madam Akua Mansah heard of the advertisement and bought one of the balms. She used it according to the prescription and also applied some of the cream to her 14-year-old daughter who had similar problems but their boils and foot-rot still persisted. She intends to sue the Company.

Required:

i) Explain whether Madam Akua Mansah is likely to succeed with her intended action. (10 marks)

ii) Madam Akua Mansah’s daughter also intends to take action against the company. Explain her chances, if any. (10 marks)

i) For there to be a binding contract there must be:

  • an offer, acceptance, consideration, and intention to create a legal relation.

From the scenario:

  • The advert in the newspaper amounted to an offer.
  • The purchase of the balm and its applications amounted to acceptance.
  • The response to the advert itself is the consideration that has been provided.
  • The deposit of the money at the bank constitutes an intention to create a legal relation.

The company is therefore liable to Madam Akua Mansah.

(2 Marks for each of the elements of the contract stated)
(10 marks)

ii)

  • In every contract, the parties must have capacity in the sense that they must be adults and of sound mind.
  • In the scenario above, Madam Akua Mansah’s daughter is said to be 14 years of age.
  • By law, she is a minor and can therefore not sue or be sued.
  • She therefore lacks capacity to sue the company.
  • There is no privity of contract.

(2 Marks for each of the elements of the contract stated)
(10 marks)

  • 10 Marks

BCL – May 2021 – L1 – Q2a – Contract Law

Analysis of a contractual transaction based on an advertisement and determining entitlement to the offer.

Kakai Company Limited had for weeks advertised their products in the electronic and print media that “Buy GH¢450 worth of products from any of our branches and get one blender free”. The deadline for the promotion was 30 November 2020. Fiifi saw the advertisement and bought products worth GH¢600 from one of the branches on 1 October 2020. Fiifi demanded the free blender. However, the sales girl told him there was no free blender to be given in that branch. An argument then ensued.

Required:
i) Describe in TWO (2) ways the nature of the transaction. (4 marks)

ii) Determine whether Fiifi should be entitled to the blender. (6 marks)

i) Elements of a contract to be mentioned – Offer, Acceptance, Consideration, Intent to create legal relation:

  • An offer may be made to a particular individual, groups or classes of persons or the world at large.
  • In an offer made to the world at large, the offer ripens into a contract with anybody who comes forward and the condition required.
  • Such an offer made ends in a contract with the limited portion of the public who come forward and perform the condition on the faith of the advertisement.
    (Any two points @ 2 marks each = 4 marks)

ii) Therefore, the transaction was an offer to the world at large, and the limited portion of the public that came forward was Fiifi, who acted on the condition. Fiifi is, therefore, entitled to the blender. (6 marks)

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