MRL3702 ASSIGNMENT 1[COMPLETE
ANSWERS] 2024 SEMESTER 2
Question 1: Explain the essential elements of a contract of sale.
Answer: A contract of sale is an agreement between a seller and a buyer in which the seller
agrees to transfer ownership of a property or goods to the buyer in exchange for a price. The
essential elements include:
1. Agreement (Consensus): Both parties must agree on the subject matter and the price.
2. Merx (Subject Matter): The goods or property being sold must be determined or
determinable.
3. Pretium (Price): The price must be definite or ascertainable.
4. Intention to Transfer Ownership: The seller must intend to transfer ownership, and the
buyer must intend to receive it.
5. Lawfulness: The contract and its terms must be lawful and not contrary to public policy.
Question 2: Discuss the implied warranty against eviction in a sale
contract.
Answer: The implied warranty against eviction is a legal guarantee that the buyer will have
undisturbed possession of the property or goods purchased. If the buyer is evicted by a third
party with a superior title, the seller must compensate the buyer. This warranty arises
automatically unless explicitly excluded by the contract. It protects the buyer against defects in
the seller's title to the property or goods.
Question 3: Differentiate between a lease and a contract of sale.
Answer:
● Contract of Sale:
○ The ownership of the property or goods is transferred from the seller to the
buyer.
○ The buyer pays the price in exchange for ownership.
○ It is a once-off transaction.
● Lease:
○ The ownership of the property or goods remains with the lessor (landlord).
○ The lessee (tenant) pays rent for the use or enjoyment of the property or goods.
○ It is a continuing relationship over time, typically for a fixed period.
ANSWERS] 2024 SEMESTER 2
Question 1: Explain the essential elements of a contract of sale.
Answer: A contract of sale is an agreement between a seller and a buyer in which the seller
agrees to transfer ownership of a property or goods to the buyer in exchange for a price. The
essential elements include:
1. Agreement (Consensus): Both parties must agree on the subject matter and the price.
2. Merx (Subject Matter): The goods or property being sold must be determined or
determinable.
3. Pretium (Price): The price must be definite or ascertainable.
4. Intention to Transfer Ownership: The seller must intend to transfer ownership, and the
buyer must intend to receive it.
5. Lawfulness: The contract and its terms must be lawful and not contrary to public policy.
Question 2: Discuss the implied warranty against eviction in a sale
contract.
Answer: The implied warranty against eviction is a legal guarantee that the buyer will have
undisturbed possession of the property or goods purchased. If the buyer is evicted by a third
party with a superior title, the seller must compensate the buyer. This warranty arises
automatically unless explicitly excluded by the contract. It protects the buyer against defects in
the seller's title to the property or goods.
Question 3: Differentiate between a lease and a contract of sale.
Answer:
● Contract of Sale:
○ The ownership of the property or goods is transferred from the seller to the
buyer.
○ The buyer pays the price in exchange for ownership.
○ It is a once-off transaction.
● Lease:
○ The ownership of the property or goods remains with the lessor (landlord).
○ The lessee (tenant) pays rent for the use or enjoyment of the property or goods.
○ It is a continuing relationship over time, typically for a fixed period.
