LAW QUESTIONS
OUESTION 1
What is “arbitration”? What are its advantages as a mode of settling disputes?
ANSWER
An arbitration may be defined “as the settlement of disputes and differences relating to
civil matters (e.g. money, property or breach of contract) between one party and
another in a quasi-judicial manner, by the decision of one or more persons, called
arbitrators, appointed by the contending parties, without having recourse to a court of
law”.
The essence of arbitration, therefore, is that it is the arbitrator(s) who decides the case
‘out of court’ though court may have to intervene to regulate arbitration proceedings, or,
to give the ‘award’ or judgement of the arbitration sanction of law. The law relating to
arbitration is contained in “The Arbitration Act (Cap 49).
ADVANTAGES
The advantages of arbitration as a mode of settling disputes are stated as under:-
(a) They are more informal, quicker and cheaper. Arbitrators are not bound by
strict rules of procedure and evidence therefore they are less formal, expedient
and cheaper compared to regular courts of law.
(b) The proceedings can be conducted privately. At the hearing, the arbitrators can
exclude persons other than the parties actually involved, and therefore
unnecessary publicity can be avoided.
(c) The parties can fix a convenient place and time for hearing of the proceedings. If
a party fails to attend the arbitrator can proceed in his absence.
(d) The arbitrator chosen by the parties has the capacity to apply special knowledge
of trade and local condition involved i.e. he can combine his knowledge of
particular problems of trade with a knowledge of law while regular courts of law
are bound by the strict law of substance read with the laws of procedure and
evidence.
(e) The ‘award’ of the arbitrator, once approved is final and no appeal lies from it.
, QUESTION 2
Explain the conditions and warranties which are implied into every Hire-purchase
contract by the Hire purchase Act (Cap 507).
ANSWER
The law relating to hire purchase agreement has been contained in the Hire Purchase
Act (Cap.507). This Act has been based mainly on English Hire Purchase Acts.
Section 8 of the Act contains the following implied conditions and warranties of hire-
purchase agreement.
(a) A condition that the owner will have right to sell the goods at the time when the
property is to pass.
(b) A warranty that the hirer shall have and enjoy quiet possession of goods.
(c) A warranty that the goods will be free from any charge of encumbrance in
favour of a third party at the time when the property is to pass; and
(d) Except where the goods are second-hand goods and the agreement contains a
statement to that effect, a condition that the goods will be of merchantable
quality.
(e) Where the hirer expressly or by implication makes known the particular purpose
for which the goods are required, there shall be implied a condition that the
goods will be reasonable fir for the purpose.
QUESTION 3
(A)Explain the meaning of the doctrine of “Promissory estoppel”, otherwise known
as “the rule in the High Trees Case” in the law of contract.
(B) What is the effect of the doctrine? Cite the relevant cases to support your
answer.
ANSWER
(a) “promissory Estoppel|
It is known as Equitable Estoppel or the rule in the High Trees case. It is a rule of
evidence which provides that where a person makes a promise to another by
which he intends to create legal relationship with the other, and that other
person acts upon it to his detriment, the court will treat the promise, even if
unsupported by consideration, as binding on the promisor or the extent that he
will not be allowed to act inconsistently with it. Simply stated, promissory
estoppel prevents a party who has made a presentation to another which the
representee relies upon the acts upon to his detriment not to change his position.
OUESTION 1
What is “arbitration”? What are its advantages as a mode of settling disputes?
ANSWER
An arbitration may be defined “as the settlement of disputes and differences relating to
civil matters (e.g. money, property or breach of contract) between one party and
another in a quasi-judicial manner, by the decision of one or more persons, called
arbitrators, appointed by the contending parties, without having recourse to a court of
law”.
The essence of arbitration, therefore, is that it is the arbitrator(s) who decides the case
‘out of court’ though court may have to intervene to regulate arbitration proceedings, or,
to give the ‘award’ or judgement of the arbitration sanction of law. The law relating to
arbitration is contained in “The Arbitration Act (Cap 49).
ADVANTAGES
The advantages of arbitration as a mode of settling disputes are stated as under:-
(a) They are more informal, quicker and cheaper. Arbitrators are not bound by
strict rules of procedure and evidence therefore they are less formal, expedient
and cheaper compared to regular courts of law.
(b) The proceedings can be conducted privately. At the hearing, the arbitrators can
exclude persons other than the parties actually involved, and therefore
unnecessary publicity can be avoided.
(c) The parties can fix a convenient place and time for hearing of the proceedings. If
a party fails to attend the arbitrator can proceed in his absence.
(d) The arbitrator chosen by the parties has the capacity to apply special knowledge
of trade and local condition involved i.e. he can combine his knowledge of
particular problems of trade with a knowledge of law while regular courts of law
are bound by the strict law of substance read with the laws of procedure and
evidence.
(e) The ‘award’ of the arbitrator, once approved is final and no appeal lies from it.
, QUESTION 2
Explain the conditions and warranties which are implied into every Hire-purchase
contract by the Hire purchase Act (Cap 507).
ANSWER
The law relating to hire purchase agreement has been contained in the Hire Purchase
Act (Cap.507). This Act has been based mainly on English Hire Purchase Acts.
Section 8 of the Act contains the following implied conditions and warranties of hire-
purchase agreement.
(a) A condition that the owner will have right to sell the goods at the time when the
property is to pass.
(b) A warranty that the hirer shall have and enjoy quiet possession of goods.
(c) A warranty that the goods will be free from any charge of encumbrance in
favour of a third party at the time when the property is to pass; and
(d) Except where the goods are second-hand goods and the agreement contains a
statement to that effect, a condition that the goods will be of merchantable
quality.
(e) Where the hirer expressly or by implication makes known the particular purpose
for which the goods are required, there shall be implied a condition that the
goods will be reasonable fir for the purpose.
QUESTION 3
(A)Explain the meaning of the doctrine of “Promissory estoppel”, otherwise known
as “the rule in the High Trees Case” in the law of contract.
(B) What is the effect of the doctrine? Cite the relevant cases to support your
answer.
ANSWER
(a) “promissory Estoppel|
It is known as Equitable Estoppel or the rule in the High Trees case. It is a rule of
evidence which provides that where a person makes a promise to another by
which he intends to create legal relationship with the other, and that other
person acts upon it to his detriment, the court will treat the promise, even if
unsupported by consideration, as binding on the promisor or the extent that he
will not be allowed to act inconsistently with it. Simply stated, promissory
estoppel prevents a party who has made a presentation to another which the
representee relies upon the acts upon to his detriment not to change his position.
