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Introduction To Law I (December 2005) Question Paper

Introduction To Law I (December 2005)

Course:Cpa Part I

Exam Year:2005

KENYA ACCOUNTANTS AND SECRETARIES NATIONAL EXAMINATIONS BOARD
CPA PART 1
LAW 1
December 2005 Time allowed: 3 hours
__________________________________________________________________________________
Answer any FIVE questions ALL questions carry equal marks.

QUESTION ONE
(a)Name and briefly explain five categories of civil law. (5 marks)
(b)Describe the limitations of common law which led to the development of the doctrines of equity. (5 marks)
(c)Distinguish between a consolidating statute and a codifying statute. (4 marks)
(d)Under the doctrine of judicial precedent, judges are said to make law.
Explain the issues contained in a judgement. (6 marks)
(Total: 20 marks)

QUESTION TWO
(a)Describe the composition and jurisdiction of the Court of Appeal in your country.
(6 marks)
(b)Identify the various orders or writs which the High Court may issue when exercising its supervisory jurisdiction. (4 marks)
(c)Describe the principles and presumptions that the courts use in the interpretation of statutes. (10 marks)
(Total: 20 marks)

QUESTION THREE
(a)Distinguish between a company limited by shares and a company limited by guarantee. (3 marks)
(b)Explain the advantages of a partnership as opposed to a limited liability company. (6 marks)
(c)Explain the duties and rights of a limited partner. (6 marks)
(d)State five circumstances that may lead to the dissolution of a partnership.
(5 marks)
(Total: 20 marks)

QUESTION FOUR
Mr. A, a car dealer sells second hand cars. On Thursday last week, he placed an advertisement in a daily newspaper which stated the following:
“Once in a lifetime, opportunity to own a one year old Nissan Caravan, low mileage, Kshs. 500,000 cash. The offer is valid for only one day and the car will go to the first person who accepts it.”
When Mr. B saw the advertisement, he immediately posted a letter of acceptance of Mr. A’s offer.
Mrs. C also saw the advertisement and came to inspect the car after which Mrs. C offered Mr. A a cheque of Kshs. 500,000. However, Mr. A refused to accept the cheque stating that another potential buyer had already offered to buy the car.
Later in the day Ms D, another interested buyer telephoned Mr. A informing him that she was willing to buy the car but asked Mr. A if he would keep the offer open until she could go to her bank to obtain a loan. Mr. A accepted the request. However later, in the day, Mr. E, another potential buyer said that he would pay Sh. 600,000 in cash for the car. Mr. A agreed to sell the car to Mr. E.
On Monday morning, Mr. A received Mr. B’s letter of acceptance. At the same time, Mr. E returned to complete the transaction. However, in the afternoon Mr. E telephoned Mr. A to say that he had second thoughts and he no longer wished to purchase the car.
Citing relevant decided cases where applicable, explain the legal principles in the case in relation to:
(a)Mr. A (4 marks)
(b)Mr. B (4 marks)
(c)Mrs. C (4 marks)
(d)Ms. D (4 marks)
(e)Mr. E (4 marks)
(Total: 20 marks)

QUESTION FIVE
(a)Explain the duties of an agent to his principal. (6 marks)
(b)Outline the conditions implied in a contract of sale of goods.(6 marks)
(c)Explain the rights and duties of the owner of goods in a hire-purchase agreement. (8 marks)
(Total: 20 marks)

QUESTION SIX
(a)Define the term “dependant” (2 marks)
(b)State the formalities of a valid written will. (4 marks)
(c)State the order of priority in which a deceased’s property is distributed where he dies intestate leaving no spouse or children. (4 marks)
(d)Highlight the circumstances under which a grant of representation may be revoked as provided for under the Law of Succession Act (Cap. 160) Laws of Kenya. (10 marks)
(Total: 20 marks)

QUESTION SEVEN
(a)Explain the principle of “Res Ipsa Loquitur” (The thing speaks for itself)(6 marks)
(b)In relation to the law of tort, explain the following rules:
(i)Reasonable foreseeability. (4 marks)
(ii)Egg shell skull (4 marks)

(c)Peter Ole Yang, while driving his car down Valley View road suddenly realized the brakes of the car had failed. Unable to stop the car he crashed into a motor vehicle driven by James Kagio, damaging James Kagio’s motor vehicle and injuring him.
Advise Peter Ole Yang as to his civil liability. (6 marks)
(Total: 20 marks)

QUESTION EIGHT
(a)In relation to the law of property:
(i)Enumerate the characteristics of a joint tenancy. (4 marks)
(ii)State the various ways in which a lease agreement may be determined.(6 marks)

(b)Distinguish between the following:
(i)Real property and personal property. (6 marks)
(ii)Legal interests and equitable interests. (4 marks)
(Total: 20 marks)

Introduction To Law I (December 2005) Question Paper

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