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Cpa Law 1 Question Paper

Cpa Law 1

Course:

Exam Year:2006

KENYA ACCOUNTANTS AND SECRETARIES NATIONAL EXAMINATIONS BOARD

CPA PART 1

LAW I

FRIDAY: 26 May 2006. Time Allowed: 3 hours.

Answer any FIVE questions. ALL questions carry equal marks.

QUESTION ONE
(a) Explain the meaning of the term “statute” and highlight the advantages of statute law.
(6 marks)
(b) Outline the extent to which common law differ from equity. (6 marks)
(c) The constitution provides that when a bill has been passed by parliament, it shall be presented to the president for assent. However, there are instances when the president declines to assent a bill.

State the procedure the bill shall go through after it has failed to receive Presidential assent.
(8 marks)
(Total: 20 marks)

QUESTION TWO
(a) Settling disputes through the courts can be slow and expensive.

State and explain five other forms of dispute resolution other than the courts of law.
(10 marks)

(b) Explain the contribution of the courts of law to justice and social order in a country.
(10 marks)
(Total: 20 marks)

QUESTION THREE
(a) With reference to the law of persons:
(i) Distinguish between domicile of origin and domicile of choice. (6 marks)
(ii) Specify the conditions that an alien must satisfy before being granted citizenship in your country. (6 marks)
(b) Tamu Limau is a senior partner in a real estate business. He would like to know whether to continue the business as a partnership or convert it into a private limited company.

Advise him on the advantages of a private limited company. (8 marks)
(Total: 20 marks)

QUESTION FOUR
(a) When parties enter into a contract, the law provides that where a written contract does not accurately express the intention of the parties, the court may rectify the contract to make it express the true intentions.

State the facts that a party seeking rectification must prove before the court can rectify the contract. (4 marks)

(b) Explain the concept of illegality of contracts and give three types of contracts that are considered illegal. (8 marks)

(c) Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings) to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed the money for and Simiyu Tito replied that he needed Shs. 2,000 (two thousand shillings) to buy food for his children and Shs. 3,000 (three thousand shillings) to bribe someone who could fix for him a person who had been bothering him. Wanyonyi Peter lent Simiyu Tito the money. A month later, when Wanyonyi Peter asked Simiyu Tito for repayment of the Shs. 5,000 (five thousand shillings), Simiyu Tito refused to do so.

Explain the legal principles applicable in this case and advise Wanyonyi Peter. (8 marks)
(Total: 20 marks)

QUESTION FIVE
(a) Distinguish a freehold from a leasehold ownership of land. (6 marks)
(b) List four circumstances under which a leasehold may be terminated. (4 marks)
(c) Identify the various ways in which an easement may be created. (4 marks)
(d) Charlie Kabue leased his shop at High Pole Commercial centre to Ray Matata for a period of two years. In the lease agreement, Ray Matata was prohibited from using the shop for any other business other than for sale of groceries.
Charlie Kabue has discovered that Ray Matata has rented out the room used as a store of the shop to Ben Chege.
Moreover, Ray Matata is in rent arrears. Mr. Charlie Kabue is aggrived and seeks your advice on the remedies available to him.

Advise him. (6 marks)
(Total: 20 marks)

QUESTION SIX
(a) In relation to the law which governs negotiable instruments, list and briefly explain four types of endorsements. (6 marks)
(b) Explain the meaning of the term “holder” in relation to a bill of exchange and outline the duties of a holder of a bill of exchange.
(c) Abel Rigo received a bill of exchange for value from Boaz Ngao who had obtained the instrument fraudulently. Abel Rigo fearing that the bill might lapse, presented it for payment whereupon it was dishonoured.

State with reasons whether Abel Rigo can claim to be a holder in due course. (4 marks)
(Total: 20 marks)

QUESTION SEVEN
(a) State and explain the circumstances under which the court may make a limited grant of administration as provided under the law of succession. (10 marks)
(b) Explain the conditions to be fulfilled before a gift in contemplation of death can take effect. (6 marks)
(c) State the powers of a personal representative. (4 marks)
(Total: 20 marks)

QUESTION EIGHT
(a) Indicate the ways in which the tort of conversion may be committed. (5 marks)
(b) Explain the legal principles applicable in each of the cases listed below:
(i) B entered into C’s land to recover a time rabbit which belonged to B’s children.
(5 marks)
(ii) H pasted a poster on D’s wall advertising a disco-dance competition meant for raising funds for a local charity.
(iii) F cut down the branches of a mango tree belonging to G, his neighbor, which had extended to his land. He picked the ripe mangoes from the fallen branches and gave all of them to children in his vicinity. (5 marks)
(Total: 20 marks)

Cpa Law 1 Question Paper

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