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Cfu 101 Business Law I Question Paper
Cfu 101 Business Law I
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2012
1
UNIVERSITY EXAMINATIONS: 2011/2012
YEAR 1 EXAMINATION FOR THE BACHELOR OF COMMERCE
CFU 101 BUSINESS LAW I (Saturday)
DATE: APRIL 2012 TIME: 2 HOURS
INSTRUCTIONS: Answer Question ONE and any other TWO Questions
Question One
a) Distinguish between a contract guarantee and a contract of indemnity. (4 Marks)
b) In relation to the law of persons outline six consequences of incorporation. (6 Marks)
c) Under what circumstances is a judicial precedent not binding on a Judge? (6 Marks)
d) What are the essential elements of a valid acceptance of a bill of exchange? (6 Marks
e) Tom wrote to Jerry offering to sell his car to him at 500,000. Jerry accepted Tom’s offer subject to
the price being reduced to Sh. 450,000. It has become apparent that Tom is not willing to sell the
car for Sh. 450,000. (8 Marks)
Question Two
a) Mike bought a coffee-maker from Dreamy Enterprises at a hire purchase price of Kshs.
50,000.After paying most of the installments as agreed, Mike wants to pay the entire balance of the
remaining installments at once. Advice him on his legal position and rights if any with regard to
request for information and completion of the hire purchase. (6 Marks)
b) What are the rules that govern the passing of property in a sale of good contract? (6 Marks)
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c) Explain the concept of frustration of contracts and it’s consequences. (8 Marks)
Question Three
a) (i)Explain the meaning of privity of a contract. (4 Marks)
ii) Outline the exceptions to the doctrine of privity of a contract. (10 Marks)
b) State the circumstances in which the guarantor will be discharged.
c) Shah, in response to an inquiry by Onyango regarding the possible sale of his (Shah’s) car, wrote to
Onyango stating, “I have decided to sell to you my car for $5,000. If I hear nothing from you
before next Sunday, I will take it that you have accepted. “Onyango considered the price to be too
high and decided to look for another car but forgot to reply to Shah’s letter. Shah is now
threatening to sue Onyango for breach of contract. Advise Onyango. (6 Marks)
Question Four
a) Explain the circumstances under which a buyer of goods may be deemed to have accepted the
goods. (5 Marks)
b) i)Define a corporation and explain the ways by which a corporation may be established.
(4 Marks)
ii)Explain the meaning of the term "statute" and highlight the advantages of statute law.(6 Marks)
c) How is the supremacy of the constitution as a source of law manifested? (5 Marks)
Question Five
Write short notes on
a) Law and morality (5 Marks)
b) Procedural and substantive law (5 Marks)
c) “Both parliament and courts of law have in various ways attempted to control delegated
legislation however, neither organ can effectively do so by reason of inherent and operational
weaknesses” Discuss” (10 Marks)
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