DOES THE PRICE OF A CONTRACT DETERMINE IF A CONTRACT IS LAWFUL OR UNLAWFUL?

On Friday, we talked about Mabirizi and Kibirige who got into an argument over whether Mabirizi could afford an expensive phone. Mabirizi was dared to produce 200k by Kibirige so he could take the most expensive phone. It turned out he could. He paid 200k to Kibirige for an iPhone 12 and has since refused to part with it.

We asked you if he was entitled to that phone. Thank you for all your thoughts and responses. Let us also add ours to that discussion.

IF I PAY LESS THAN THE ‘REAL’ PRICE FOR A PHONE, AM I ENTITLED TO IT?

In contract law, the price of something in a contract is a called consideration. It is the payment or the reward for doing something or not doing something according to what has been agreed. It does not necessarily have to be money. For example, if I promise to withdraw my case against you at police and in exchange give me your shoes. This is a contract and the payment for your shoes, is me withdrawing my case against you at police. Furthermore, this price does not have to be ‘enough’, it just needs to be what the other person has asked for. If it turns out that the case was against me was for 5million and the shoes are worth 50,000 it does not do away with the contract. For example, Kibirige probably knew that an iPhone 12 was UGX 3,000,000 but chose to ask Mabirizi to pay 200,000 for it. Since Mabirizi paid it, makes this a contract between the two of them.

The fact that the phone was UGX 3,000,000 million does not make this contract invalid, it just Kibirige is probably a poor businessman who should not go around daring people without knowing how much they have in the pocket.

BarefootLaw

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