ICANBusiness LawLaw of Contract: Vitiating Factors and Discharge2020

QUESTION 1 Bisi & Sons Nigeria Ltd, a cocoa merchant firm in Ondo State, entered into a written contract with Eko Haulage Ltd to transport 1,000 bags of premium cocoa beans from Akure to the Apapa Port in Lagos for export to Europe. Prior to signing the agreement, the Logistics Manager of Eko Haulage Ltd assured Bisi & Sons Nigeria Ltd that "all our fleet of heavy-duty trucks are brand new, fully insured, and routinely serviced every month." Relying on this representation, Bisi & Sons signed the contract and paid a deposit of N5,000,000. Three days into the journey, two of the trucks broke down catastrophically in Ore due to severe mechanical defects that existed prior to the trip. It was subsequently discovered that the trucks were over fifteen years old, poorly maintained, and uninsured. Consequently, 400 bags of cocoa spoiled due to exposure to heavy rainfall while parked on the highway, causing a loss of N15,000,000 to Bisi & Sons. Furthermore, while the remaining trucks were en route, the Federal Government of Nigeria announced an immediate and unexpected total ban on the export of raw cocoa beans through all sea ports, making the fulfillment of the ultimate export contract illegal. Required: (a) Define misrepresentation under the Nigerian Law of Contract, identify the specific type of misrepresentation present in the scenario, and advise Bisi & Sons Nigeria Ltd on whether they can rescind the contract. (8 Marks) (b) Explain the doctrine of frustration of contract, and evaluate whether the Federal Government's sudden export ban discharges the contract between Bisi & Sons Nigeria Ltd and Eko Haulage Ltd. (7 Marks) (c) Outline three (3) remedies available to Bisi & Sons Nigeria Ltd against Eko Haulage Ltd under Nigerian Law. (5 Marks) (Total: 20 Marks)

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