Nov 2016 Q3

• A promisor who has promised to keep his offer open for a specified period is not at liberty to withdraw the offer before the expiration of that period on the ground that the promisee has not provided any consideration for the offer.
• A creditor who promises, without receiving consideration for the whole or part of a debt or to waive the performance of some other contractual or legal obligation can be held to his promise. The promise of waiver shall not be invalid as a contract by reason only of the absence of any consideration for it.
• If one is legally bound to perform a legal duty, the performance, or promise to perform that act may be sufficient consideration.
• It is possible for consideration to be supplied by someone other than promisee. The beneficiary need not be the promisee. (S.10).

Capacity: a person is said to have capacity when he is of sound mind and has attained the age of majority (i.e. 18 years in Ghana). In order to form a wholly valid contract, parties must be over 18 years of age and be of sound mind. Under the section 2 of the Sale of Goods Act, capacity to buy and sell is regulated by this general law concerning capacity to contract and to transfer and acquire property.

Acceptance: In order to constitute a valid contract, there must be an offer and an unqualified acceptance. Acceptance may be oral, written or implied from conduct. Under Section 52 of the Sale of Goods Act, 1962 (Act 137), the buyer is deemed to have accepted the goods when-

• He intimates to the seller that he accepts them; or
• He does not, within a reasonable time after delivery of the goods, inform the seller that he rejects them; or
• He wrongfully refuses or neglects to place the goods at the disposal of the seller after notifying the seller that he rejects them.

Misrepresentation: A misrepresentation is (a) a false statement (b) of material fact (c) made by a party to a contract or his agent (d) inducing the other to enter into the contract.

Goods: means “ movable property of every description, and includes growing crops or plants and other things attached to or forming part of the land which are agreed to be severed before sale by or under the contract of sale”- Section 81 of Sale of Goods Act, 1962 (Act 37).

Quantum Meruit: Where there is a breach of an essential condition in a contact, the injured may either (a) seek to enforce the contract and sue for damages; or (b) treat the contract as discharged in which case he cannot sue for damages for its breach. However, where he adopts course (b) above, and treats the contract as discharged, he is entitled to bring a quasi-contractual action for compensation for work done or services rendered, etc. This is called a Quantum Meruit action (literally “how much is it worth?)