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Knec Question Paper

Knec

Course:Diploma In Business Administration

Institution: Coast Institute Of Technology question papers

Exam Year:

2806/306

COMMERCIAL AND ADMINISTRATIVE LAW
NOVEMBER, 2001
TIME: 3 hours

THE KENYA NATIONAL EXAMINATION COUNCIL

DIPLOMA IN BUSINESS ADMINISTRATION

COMMERCIAL AND ADMINISTRATIVE LAW
3 HOURS

INSTRUCTION TO CANDIDATES
Answer any FIVE questions

1. (a) In relation to the law of contract, outline FIVE requirements of a valid contract (10 marks)
(b) ( i) Name the court that has jurisdiction to determine whether a persons fundamental human rights entrenched in the constitution of Kenya have been violated (1 mark)
(ii) State four rights of such fundamental human rights (4 marks)
(c) State two original methods of acquiring g ownership of land (5 marks)
2. . (a) Anyango is 15 years old and a full time student. During school holidays, she entered into a contract of employment with lake Limited at a salary of sh 8,000.
After one week, Anyango borrowed sh.5,000 as an advance from Lake Limited and spent sh. 3,000 on a wig for her aunt. Later Anyango refused to return to her employment and spent the balance of sh. 2,000 entertaining her friends.
Anyango’s parents would not have consented to her employment during the holiday. Lake Limited reported the matter to Anyango’s parents after she had spent all the money.
Explain
(i) If Lake Limited has a remedy against Anyango
(ii) If Anyango can be held liable for unjust enrichment
(b) In relation to the law of contract, outline SIX agreements that may be regarded as being contrary to public policy
3Outline FOUR elements of a contract o sale of goods.
(b) Mohamed Kuria and Onyango are in partnership business operating a garage their partnership agreement provides that only Onyango has the authority to contract on behalf of the business upto a value of sh. 100,000. Above sh. 100,000 prior of consent of other party’s is required. (8 marks)
Onyango bought a lathe machine for sh. 120,000 without informing other party. Also,Mohamed bought a printing machine because he thought it might be useful in future.
Explain if the transactions of Onyango and Mohamed will bind the partnership business (6 marks)
( c) Outline THREE rights of a buyer in a contract of sale of goods (6 marks)

i) .(a) Kitur sold his vehicle to his friend Kimani .They agreed that Kitur would continue paying the premiums on the insurance policy as before. Kitur handed over the car to Kimani.
Two weeks later, the car was seriously damaged in an accident. Now kitur, has made a claim to the insurance company.
Comment on whether Kitur or Kimani is entitled to compensation. (10 marks)
(b) Khama insured his house against fire for sh. 2,000,000 while the true value of the house was sh. 4,000,000. Later fire destroyed part of the house and the loss was estimated at sh.1000, 000.
Determine the amount that Khama can expect from insurance company as compensation (6marks)
(c ) State the difference between the terms Insurance and Assurance (4marks)
5.(a) The government of Kenya has responsibility of setting up a personnel. Administration and Management system to assist in running the affairs of the government
(b) Outline the THREE Arms of the government, indicating the functions of each (6marks)
(c) State the meaning of the following
i. Common carrier
ii. Bill of lading
iii. Shipping Note
6. (a) Outline the meaning of a ‘holder in due course’ of a cheque.
(b) State the conditions that must be met when one one is a holder in due course.
( c) i. Explain the meaning of bailment
ii Highlight FOUR duties of the bailee
7.a. outline how the Hire Purchase Act protect the hirer against the risk of having goods bought on hire purchase repossessed by the seller for non-payment of installments.
b. State SEVEN circumstances under which an agent can be held personally liable for contract he has concluded.

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