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- 8 Marks
Question
As part of efforts in catering for Ghanaians who were displaced by the Russian war on Ukraine, the Government of Ghana erected tents in Poland. These tents are no longer in use because all Ghanaians were evacuated back to Ghana. As a result, the Government set up a disposal board to sell these tents. The board agreed to sell the tents to Dominika who left an amount of GH¢10,000,000 as a security deposit for her purchases. According to the written agreement between the disposal board and Dominika, the price for the tents and the dates on which payment was to be made were to be agreed between the parties as and when the tents became available. In July 2022, a new disposal board took over and refused to sell the tents to Dominika. They stated that they no longer considered themselves bound by the contract.
Required:
Identify FOUR (4) issues in the contract of sale of goods in the above scenario. (8 marks)
Answer
Issues in the Contract of Sale of Goods:
- Existence of a Contract of Sale:
Whether or not there is a contract of sale of the tents between the Board (representing the Government of Ghana) and Dominika. According to Section 1(1) of the Sale of Goods Act, 1962 (Act 137), a contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration called the price. - Consideration in the Form of Security Deposit:
Whether or not the GH¢10,000,000 as a security deposit is to be considered as consideration under the contract of sale. Section 1(1) of the Sale of Goods Act, 1962 (Act 137) requires a money consideration to validate the sale. - Price Determination:
Whether or not under the contract of sale of goods, the price is allowed to be fixed in a manner agreed upon by the parties. Section 6 of the Sale of Goods Act, 1962 (Act 137) permits the price to be determined by the method agreed upon by the parties. - Breach of Fundamental Obligation:
Whether the new Board representing the Government is guilty of its fundamental obligation to sell and deliver the tents to Dominika. According to Section 8(1) of the Sale of Goods Act, 1962 (Act 137), it is the duty of the seller to deliver the goods and the duty of the buyer to accept and pay for them in accordance with the terms of the contract.
- Tags: Contract Law, Government Contracts, Sale of Goods, Security Deposit
- Level: Level 1
- Topic: Sale of goods/hire purchase
- Series: DEC 2022
- Uploader: Kwame Aikins