Get premium membership and access revision papers, questions with answers as well as video lessons.
Bmit 212: Business Law 2010 Question Paper
Bmit 212: Business Law 2010
Course:Bachelor Of Commerce
Institution: Kabarak University question papers
Exam Year:2010
INSTRUCTIONS:
1. Answer QUESTION 1 And ANY THREE Others
2. Marks May Be Lost For Illegibility
3. Examples & Cases will attract more Marks
1. (a). Lydiah writes to Joseph on 1st February 2009, offering to purchase Joseph’s flat on
Westlands, Nairobi at a price of Kshs. 4,000,000/= and states in her letter that if she
hears no more about it, she will consider the flat to be hers. Joseph writes back on 4th
February 2009 stating that he will only be willing to sell the flat at Kshs. 5,000,000/=,
upon which Lydiah writes back stating that she has agreed to buy the flat at Kshs.
5,000,000/=. Joseph later sells the flat to John at Kshs. 5,200,000/=. Lydiah then
instructs her lawyers to file a case against Joseph seeking damages for breach of
contract.
With reference to decided cases and Rules of Offer and Acceptance discuss whether or
not she is likely to succeed. (15 Marks)
1. (b). One of the requirements of a valid contract is that there must be an intention to create
legal relations. Briefly explain the following instances and support your answer with
decided cases and examples.
(i). Angela was staying with her husband Mogaka who was working with United
Nations in London although they were Kenyan Nationals. They came back for
holiday last December. Angela became sick and was left behind as Mogaka
went back to England to resume his job. He promised to be sending her Kshs.
50,000/= per Month for her up-keep “as long as I can manage it”. Mogaka has
never sent any money. Angela wants to take him to Court to enforce the
promise. Can he succeed? (5 Marks)
(ii). Chirchir and Wellington are Business partners, Wellington supplies Chirchir
with goods from London to Nairobi. They expressly provided in their
Agreement that their contract was not subject to any Legal jurisdiction of either
Country even if either party breaches the Agreement. Wellington has failed to
supply the goods Chirchir has taken him to Milimani Commercial Court
Nairobi. Can she succeed? (5 Marks)
1.(c). (i). Differentiate between offer and invitation to treat by giving examples of
offers and invitations to treat (5 Marks)
(ii). Briefly explain Three main sources of contemporary Laws of Kenya.
(5 Marks)
(iii). Explain what is consideration in a contract and support your answer with
examples. (5 Marks)
(TOTAL MARKS 40)
2. (a) In relation to the Law of contract and supported by examples/case Law, briefly
explain the following:-
(i). Conditions in a contract (5 Marks)
(ii). Warranties in a contract (5 Marks)
(b). Explain the following rules of statutory interpretation
(i). The Literal Rule (3 Marks)
(ii). The golden Rule (3 Marks)
(iii). The Mischief Rule (4 Marks)
(TOTAL MARKS 20)
3. (a). Six Months ago, Bill a Market gardener bought a new tractor for Kshs. 1.5 Million
from James, a dealer. The police have now taken the tractor from Bill and returned the
tractor to its true owner Joseph: A thief had stolen the tractor from Joseph, before
selling the same to James. James did not know the tractor had been stolen. Explain the
rights of Bill against James according to sale of Goods Act Cap 31.
(7 Marks)
(b). The Plaintiff went to a shop and asked for a bottle of Stone ginger Wine at the
Defendant’s shop, which was licensed for the sale of wines. While the Plaintiff was
drawing the cork with a corkscrew, the bottle broke at the neck and injured him. The
bottle was found not fit for packaging. The Plaintiff sued the Manufacturer for
recovery of damages. Can he succeed? Give reasons for your answer.
(7Marks)
(c). C Purchased a tin of disinfectant powder from A. A knew that the powder was likely
to be dangerous to C, if it was opened without special care being taken, but did not tell
C about this danger. C opened the tin in the normal way whereupon the disinfectant
powder flew into the eyes of C and caused injury. Is A liable to pay damages to C?
Give reasons for your answer. (6Marks)
(TOTAL MARKS 20)
4. Write explanatory notes on:-
(a). Conditions and warranties implied in a contract of sale of goods.
(4 Marks)
(b). Creation of Agency Relationship (4 Marks)
(c). General defences available to a Defendant in an action arising out to a tort
(6 Marks)
(d). Major characteristics of Negotiable Instruments (6 Marks)
(TOTAL MARKS 20)
5. Grace has worked for Hildah for the past 12 years and they have always been on
extremely friendly terms, frequently socializing together. Recently, however they had
an argument outside work and totally unrelated to work. Grace now believes that
Hildah is going to dismiss her from job at the end of the week.
Advise Grace in relation to Employment Law relating to unfair dismissal. In particular
advise her as to:-
(a). The Grounds on which dismissal may be fair . (8 Marks)
(b). The Grounds on which dismissal will be automatically unfair
(6 Marks)
(c). The remedies she would have if she were to be unfairly dismissed
(6 Marks)
(TOTAL MARKS 20)
6. (a) The promoters of a Company are supposed to prepare two major documents which
they must lodge with the registrar of companies before Registration.
Explain what they are and what are the contents in each of them.
(6 Marks)
(b). Compare and contrast Private Company and Public Company. (6 Marks)
(c). Briefly Distinguish between-
(i). Companies Limited by Guarantee. (4 Marks)
(ii). Companies Limited by Shares. (4 Marks)
(TOTAL MARKS 20)
More Question Papers
Popular Exams
Return to Question Papers