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Business Law Question Paper
Business Law
Course:B.Comm
Institution: Kabarak University question papers
Exam Year:2009
KABARAK
UNIVERSITY
UNIVERSITY EXAMINATIONS
2009/2010 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: BMGT 313
COURSE TITLE: BUSINESS LAW I
STREAM:
Y3S2
DAY:
THURSDAY
TIME:
9:00 – 11:00 A.M.
DATE:
03/12/2009
INSTRUCTIONS:
-Answer question ONE (I) and any other Two
-Do not write anything on the question paper
-Time allowed is two hours only.
Page 1 of Page 3
(1) (a) James aged 15 years fraudulently represented himself to Housing Finance
Corporation Nakuru Branch that he was full of age and executed a mortgage deed
for Kshs.1,000 James later failed to pay the money loaned. Advise Housing
Finance Corporation of its rights against James if any. (5 marks)
(b) A ‘s wife B paid Kshs 50,000 to C to be given as a bribe to a court official for
procuring release for her husband from jail. The court official failed to procure the
release of A can B recover the amount? Give reason for your answer. (5 marks)
(c) G paid Kshs 100,000 to A, a civil servant employed in the ministry of works in
consideration of A’s promise that a government contract which is at the disposal
of his department will be awarded to G. before this could be done A was
transferred to another ministry. G now wishes to reclaim from A Kshs 100,000
paid to him. Will G succeed? Give reasons for your answer. (5 marks)
(d) P employed A as his agent in selling his (P’s gold) watch. A was instructed to sell
the watch for not less than 4,000, A bought the watch himself and handed over
4,000 to P who was quite satisfied with the price and did not ask for the name of
the buyer. P later discovered the identity of the buyer after A resold the watch for
Kshs 6,000. Explain the rights P against A if any.
(5 marks)
(e) A hirer obtained possession of a refrigerator from its owner under a hire-purchase
agreement and sold the same refrigerator to a buyer who bought it in good faith
and without notice of the right of the owner. Does the buyer have a good title to
the refrigerator? Give reason for your answer
(5 marks)
(f) X, Y and Z entered into a partnership to execute contracts X Secured for the
partnership work estimated to cost Kshs 300,000. He obtained the said order only
on payment of Kshs 10,000 to a person in authority and debits the sum in the
account books as an item of expense. The other partners objected to the item.
How would you decide the disputed?
(5 marks)
(2) (a) With specific examples distinguish between an executed contract and executory
contract.
(5 marks)
(b) Explain how a contract is terminated.
(10 marks)
(c) Discuss the essentials of a promissory note.
(5 marks)
(3) (a) Explain how agency by ratification arises.
(5 marks)
(b) Using relevant examples explain the rights of an agent against the principal.
(10 marks)
(c) Explain the essentials of a partnership.
Page 2 of Page 3
(4) (a) Explain the exceptions to the rule Nemo dat Quod non habet
(10marks)
(b) Distinguish between a condition and a warrant as used under the contract of sale
of goods.
(5 marks)
(c) Discuss the rights of a buyer against a seller.
(5 marks)
(5) Write short notes on the following.
(a) Disabilities of an adjudged bankrubt.
(b) An order of specific performance.
(c) The constitution of Kenya as a source of law.
(d) Functions of law.
(6) (a) Using specific examples explain the essentials of the tort of defamation. (5 marks)
(b) Explain the defences available under the law of tort.
(10 marks)
(c) Discuss the disadvantages of arbitration.
(5 marks)
Page 3 of Page 3
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