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Commercial Law I Question Paper

Commercial Law I 

Course:Bachelor Of Laws

Institution: Kenyatta University question papers

Exam Year:2012



KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2012/2013
FIRST SEMESTER EXAMINATIONS FOR THE DEGREE OF BACHELOR OF LAWS
LCC 309: COMMERCIAL LAW 1
DATE: Wednesday 19th December 2012 TIME: 9.00 a.m.-11.00 a.m.
INSTRUCTIONS:
1) Question ONE is compulsory. Please note to answer both parts of question 1
2) Answer any oter TWO questions in addition to the compulsory one
3) Any form of examination irregularity will be subjected to disciplinary action
QUESTION 1
Part A:
Milner purchased a gallon of petrol engine oil from Angus Limited for purposes of serving his car. The car was duly serviced and barely ten kilometers on the road Milner’s vehicle broke down. On expert examination, it was revealed that the engine that he had bought from Angus Limited was unfit.
Milner feels very aggrieved and has decided to sue Angus and has decided to sue Angus Limited on the ground that the petrol engine oil was not fit for the purpose.
Milner has asked you as a young, budding lawyer to do a well considered and intelligent legal opinion on the case while setting out the appropriate principles with the aid of case law and his chances of success against the proposed defendant. (15 marks)
Part B:
Peter owned a restaurant in Nairobi which was licensed to sell alcoholic drinks. The licence was in his name. Peter later sold the restaurant to John, who retained him as manager. The licence continued to be held in Peter’s name.
Saul supplied Havana Cigars to Peter, to whom alone he gave credit, believing him to be the owner of the restaurant. Saul had never heard of John, who had forbidden Peter to buy anything for use in the restaurant on credit. Peter has now failed to pay Saul and Saul has learnt that indeed John is the new owner of the restaurant. John denies liabilities and Saul has decided to sue both Peter and John.
You are the presiding judge seized of the matter. Citing appropriate case law, please proceed and deliver your judgment. (15 marks)
QUESTION 2
With the aid of case law, discuss exhaustively the statutory exceptions to the Nemo Dat Rule. (20 marks)
QUESTION 3
You have been requested by the Dean, School of Law, to give a power point presentation on the topic “Ratification-Requirements, Effect, Methods and Limitations.”
You are well prepared with appropriate case law. Proceed. (20 marks)
QUESTION 4
Joy sent her thoroughbred horse by train and on its arrival there was no one to receive it in spite of the prior arrangements she had made.
The railway company, in spite of realizing that there is no one to take receipt of the horse, never took steps to secure the horse and in the process it was lost. The railway company believed that it was only bound to transport the horse to the point of destination and it did not owe Joy a duty to secure the horse honestly believing that it was Joy’s duty to ensure that there was someone to receive it.
Joy has decided to sue the railway company and you have been called upon to make written submissions on behalf of Joy with the aid of appropriate case law and setting out the relevant principles. (20 marks)
QUESTION 5
Write explanatory notes on the following:-
a) Principles of interpretation of contract of sale. (5 marks)
b) Consequences of delivery. (5 marks)
c) Duties of Principal to the Agent. (5 marks)
d) Power and Authority of Agent and their distinction. (5 marks)






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