1.      Non-compete clauses in contracts.

A non-compete clause prevents the employee from unfairly competing against the employer during employment and after it ends. So non complete clauses are mainly in employment contracts. A non-complete clause should not be unfair in stopping   an employee from completely practicing their profession or skill since one has a right to practice their profession and earn from it. Such clauses should not be too restrictive.

2.      Bankruptcy and Contract law.  

Bankruptcy is when one’s debts are more than his/her assets so he is unable to pay. Normally when one of the parties to a contract is declared bankrupt, the contract is terminated due to the bankruptcy but this depends on the contractual terms and all contracts are interpreted/ construed based on the intentions of the parties. Like in cases of employment contracts when the employer becomes bankrupt the contract automatically terminates.

3.      Notice Periods and Termination of contracts.

In most contracts, the notice period is provided for before the contract can be terminated, so any party who intends to terminate a contract must give sufficient notice to the other party as stipulated in the contract or pay compensation in lieu of notice (this is payment made to waive the notice period, it is the equivalent of the money the other party would get during the notice period). Termination of contracts can happen in so many ways either by the parties completely satisfying their obligations under the contract, one party deciding to terminate and giving the other notice of termination or by both parties to a contract mutually agreeing to end the contract and in some cases by the occurrence of an event that makes performance of contract impossible.

4.      Frustration of contracts

A frustrated contract is a contract that without fault of either party is incapable of being performed due to an unforeseen event or occurrence. The legal consequence of a contract which is found to be frustrated is that the contract is automatically terminated at the point of frustration.

5.      Force majeure clauses in contracts

Force majeure simply means great force. It is added in contracts to protect employees from events beyond their control which prevent them from performing the control like natural disasters, commonly referred to as an act of god. Some contracts currently provide for clauses such as political force majeure whereby occurrences such as strikes, civil instability and commotion directly linked to a political event can be part of force majeure and can render a contract frustrated.

6.      Alternative Dispute Resolution and Contract law and how to resolve contractual disputes

Contracts usually have a dispute resolution clause to help incase conflicts arise from  the contract like regarding interpretation of the clauses in the contract and where a party to the contract breaches terms in the contract, parties can decide whether to use the court system or Alternative Dispute Resolution mechanisms. In the court system the affected party simply files a case in court and presents evidence to show breach by the other part and wait for the judgement of court.

Alternative Dispute Resolution (ADR) includes Arbitration (this is where the parties to a contract present their case or issue before an arbitrator who is usually an expert in the contractual area and await his binding decision), mediation (this is where parties to a contract present their issues under the contract to a mediator who helps them reach an agreement on how to solve their issues under the contract). Most contracts will have an ADR clause, specifically an arbitration clause because it’s arguably the most pragmatic and efficient for businesses.

7.      Legal obligations arising out of the contract.

Contractual obligations are those duties that each party is legally responsible for in a contract agreement, in a contract each party exchanges something of value, whether it be a product, services, money, skill etc.

Obligations depend on the contract entered but each party in the contract has an obligation to perform all his obligations under the contract, like payment in case he is required to pay, delivery in case he is required to deliver a product, one also has an obligation to provide quality goods and services in case the contract requires provision of goods and services.

8.      Enforcement and applicability of contracts abroad or overseas.

Enforcement of contracts abroad or overseas is difficult because of bureaucracy but courts in East Africa honor contracts and even court orders from overseas if they are valid, like incases of wills where a foreigner has properties within, they can do probate resealing and the properties of the deceased are disposed of by the executor or administrator. Even in case of arbitration, an arbitration order from overseas can be registered and honored by court and enforced.

9.      Execution of contracts during a pandemic.

A pandemic can lead to frustration of the contract if it affects the contract directly by making it impossible to perform. In case it makes the contract hard to perform and not impossible to perform, the parties can adjust the terms of the contract or renegotiate the contract for them to positively gain from the contract.

10.   Remedies under a contract.

The remedies include;

·        Specific performance, this is where a party in breach of his terms/ obligations under a contract is ordered by court to perform the term or obligation breached.

·        Damages, this is where a party in breach is required to pay money as compensation for the breach he has committed.

·        Restitution, this is full or partial compensation intended to restore the parties to a contract to their position before they entered into the contract.

·        Rescission. This is where a contract is cancelled like in cases of breach the affected party can