Question

a) Set out the two Parties involved in a contract of employment.

b) What functions would a notary public effect in a contract of sale? (1 Mark)

c) Setting out examples, identify the differences between duress and undue influence.

d)Set out two instances which would qualify to be misrepresentation in a contract.

Answer 1

a) A contract of employment is a contract that is used in labor law. It determines the rights and responsibilities between parties to bargain. It states nature of the business and the job which is to be offered. Two parties that are involved in a contract of employment are employer and employee.It is a contract between employer and employee. It states the relationship between employer and employee.

b) A notary public is an official who is appointed by state government for integrity. A notary public act as a impartial witness while performing his duty in signing important documents. In s contract of sale the notary has to perform following functions:

• He needs to screen the the signers of documents so as to ensure their true identity, their willingness to sign without intimidation
• Sometimes they need to put signers under oath so as to ensure that the information given in the document is true and correct.
• They are responsible for receiving all contracts
• To check each parties rights to sell or buy the property.
• To check whether there is any third party claim on the property.

c) Difference between duress and undue influence

Duress	Undue influence
In this the consent is negated	In this case the consent is present , although influenced
Duress is a situation when someone if forced to do something by threatening them by violence.	It is a situation when a person uses his/ her power to influence others to agree to a contract.
It is much more visible and active interference.	It is less visible then duress.
Example of duress are: threatening someone to cause significant economic loss to other party, threat to cause physical harm to someone	Example : a politician using his/ her power to influence others to act

d) A misrepresentation is defined as a false statement of a material fact by one party which have a impact on the other party to the contract. When contract is made with misrepresentation and such representation is discovered then the contract becomes void.

Two instances that would qualify to be misrepresentation in a contract are:

• If one party knows that the statements in the contract are wrong. Then this qualify to be misrepresentation in a contract as it was knowingly done at the time of entering the contract.
• An individual selling house to a third party based on information ( property being free of defects) provided by the owner before making sure whether the owner was saying truth. This is also a case of misrepresentation, even though negligent.