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Law I ( December 2000) Question Paper

Law I ( December 2000)

Course:Cpa Part I

Exam Year:2000

KASNEB
CPA PART 1 SECTION 1
LAW 1
DECEMBER 2000 TIME ALLOWED: 3 Hours
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Answer ALL Questions.Marks allocated to each question are shown at the end of the of the question.

QUESTION ONE
(a)Describe the various branches of civil law. (10 marks)

(b)Distinguish legal rights from equitable rights and outline the main equitable remedies available to an aggrieved party. (10 marks)
(Total: 20 marks)

QUESTION TWO
(a)The Business Premises Rent Tribunals are established under section 11 of “The Landlord and Tenant (Shops, Hotels and Catering Establishment Act (Cap 301) Laws of Kenya.What purpose do these tribunals serve and what are their main and important powers as stipulated under the Act? (12 marks)

(b)Describe the main function and composition of Judicial Service Commission. (8 marks)
(Total: 20 marks)

QUESTION THREE
(a)Differentiate between a Memorandum of Association and Articles of Association of a registered company and detail the contents of the Articles of Association. (10 marks)
(b)Explain three characteristics of a private limited company. (6 marks)

(c)“A corporation may be defined as a legal entity or artificial person.” Explain what is meant by this statement. (4 marks)
(Total: 20 marks)

QUESTION FOUR
(a)How true is it to say that in order for a contract to be discharged by performance, the performance must be precise and exact? (10 marks)

b)Annan agreed to paint Angela’s house at an agreed price. When Annan had finished the work. Angela discovered that although most of the painting was satisfactory, Annan had forgotten to apply a coat of gloss paint on one of the doors. Annan fell ill and could not complete the work. Angela refused to pay Annan the contractual price, claiming that the contract had not been fully executed and that therefore he was entitled to be paid only a reasonable sum for the work he had actually undertaken. This, Annan claimed, was much less than the contract price.
Advise Annan. (10 marks)
(Total: 20 marks)

QUESTION FIVE
(a)In relation to the Law of Property, state five obligations of a lessor towards a lessee in a lease agreement. (10 marks)

(b)Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to service the loan and is in arrears. The bank intends to realize the security and seeks your legal advice on what options they can take to realize the security.
Advise White bank. (10 marks)
(Total: 20 marks)

QUESTION SIX
(a)“An occupier of premises owes a duty of care towards persons who are lawfully on his premises. The Occupiers Liability Act does not affect the position of trespassers.” In relation to the above statement, what is the extent of potential liability of an occupier and to what extent can such an occupier safeguard such liability. (12 marks)

(b)Due to Desmond’s carelessness in allowing excessive electric current to develop in his generator, the electricity supply to the locality cut after a few hours.
As a result, Derrick’s factory was at a standstill during this period and he lost Sh. 50,000 by way of profits from lost production.
Advise Derrick in regard to his rights, if any, against Desmond. (8 marks)
(Total: 20 marks)

QUESTION SEVEN
(a)In relation to the Law of Succession, what are the duties of a personal representative? (12 marks)

(b)What liability is imposed on the seller of goods as regards their merchantable quality and their fitness for the purpose of those goods? (8 marks)
(Total: 20 marks)

QUESTION EIGHT
(a)“A contract of insurance is a contract of “Uberrimae fidei (utmost good faith)”. Explain this statement. (6 marks)

(b)Briefly state the various kinds of crossing on a cheque. (4 marks)

(c)Mr. Karanja signed blank cheques and left them with his wife to draw cash while he was away attending to business affairs. Mrs Karanja instructed Hatari, a clerk in the firm of Karanja and Karanja Associates to fill in the cheques. Hatari filled in the amount leaving a gap after the words “Sh.” and wrote the amount in words from the middle of the line without using a capital letter. Hatari showed the cheques to Mrs Karanja written “Sh. 50,000” and ………. fifty thousand only.” He was authorized to encash the cheque. However before presenting the cheque for payment Hatari added figure “3” to the amount in figures and “three hundred” in the words. He encashed the chequed for Sh. 350,000. He then gave Mrs. Karanja Sh. 50,000 only. These facts have come to light after Hatari’s resignation and Mr. Karanja intends to sue his bankers.
Advise the bank. (10 marks)
(Total: 20 marks)

Law I ( December 2000) Question Paper

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