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Klaw 209:Sale Of Goods And Agencies March 2011 Question Paper
Klaw 209:Sale Of Goods And Agencies March 2011
Course:Bachelor Of Laws
Institution: Kabarak University question papers
Exam Year:2011
KABARAK UNIVERSITY
UNIVERSITY EXAMINATIONS
2010/2011 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF LAWS
COURSE CODE: KLAW 209
INSTRUCTIONS:
1. Answer Questions 1 and any other 2 Questions
2. CASES and EXAMPLES will attract more Marks
3. Marks will be LOST for Illegibility
1. (a). “In the development of our sale of Goods Laws, two principles have striven for mastery.
The first is for the protection of property; no one can give a better title than he himself
possesses. The second is for the protection of commercial transactions; the person who
buys goods in good faith and for value without notice of any defective title should get a
good title”.
(Justice Nyangumi in Nakumatt Limited –vs- Bedi Investments Limited NKU HCCC 20
of 2005).
DISCUSS (10 Marks)
(b). A made an Order of “ New Iron sheets and Tiles” from B. B delivered new iron sheets
and Tiles but they were “Army surplus goods” which had been legally sold to him as
there was an order from DOD to dispose those goods and raise money to purchase fire
arms. A refused to accept them claiming they did not match the description given by B.
DECIDE (4 Marks)
(c). A exchanged his car with B but because A’s car was newer than B’s, B had to add him
Kshs. 200,000/= besides giving him the car. A insisted that they were bound by cap 31,
Sale of goods Act. B said they were not. Decide who was right and give reasons for your
decision. (4 Marks)
(d). Explain whether the following qualify to be called contract of sell of Goods under Cap 31
Laws of Kenya.
(i). Omweri contracts Onyango who is an artist to use his skills and paint a portrait
of him and his family which he was to display at his sitting room. (4 Marks)
(ii). Diana contracts Phillegonah to paint 20 portraits of president Kibaki
promulgating the constitution which she will sell at her shop selling these kind
of collections. (4 Marks)
(e). Ben went for holiday in Mombasa and during his tour; he identified a car which he has
been looking for. He instructed the seller to deliver the car to Nakuru where he was going
to pay him the purchase price. The car was involved in an accident at Nairobi. Be has
refused to pay. The seller wants to be paid.
DECIDE giving reasons for your decision. (4 Marks)
(GRAND TOTAL 30 MARKS)
2. You are a Judge at Milimani Commercial Court in Nairobi and the following cases have
been put before you for considerations and logical determination. Proceed now to
determine the same according to Cap 31 & Law of agency.
(a). Onyango told Kamau, a car dealer that he wanted a car that would be comfortable for
Touring purposes and going to Safaris to Masai Mara. Kamau recommended a Toyota
Land Cruiser to him. Onyango relied on Kamau’s expert advice and bought the car.
When it was delivered, it was found that it was neither comfortable nor suitable for
Touring purposes. Now Onyango has sued Kamau for the return of the purchase price.
Can he succeed? (6 Marks)
(b). A who was promoting a company which had not then been registered made a contract on
behalf of the unregistered Company with B. after the Company had been registered; it
attempted to ratify the contract. Later the company due to it’s insolvency, went into
liquidation, B went to Court to enforce the contract between him and A. A said it was the
Company which was liable. DECIDE the case taking into consideration requirements of
ratification in Agency. (7 Marks)
(c). A fixed condensing Engine was sold by A to B. the engine was to be SEVERED and
delivered free on rail at specified price and B was to pay after delivery. The engine was
damaged in transit before it reached the railway and B refused to pay when it was
delivered. Taking into consideration passage of property in Goods from the seller to the
buyer and its effects.
DECIDE (7 Marks)
(GRAND TOTAL MARKS 20)
3.(a). A contract of Sale of Goods by sample between Ben and Sally provided that payment of
the goods was to be made on arrival against the shipping documents.
Ben who is the buyer of the Goods had an opportunity to examine the goods before. Later
on examination, Ben found that the bulk did not correspond with the sample. Explain in
details whether Ben can reject the goods and give reasons for your decision.
(7 Marks)
(b). The ability of an agent to bind his principal depends upon him having the authority to act.
Rono is the manager of Merica Hotel. Under new management he was ordered not to buy
Cigarettes which he used to buy previously. Rono went on to buy Cigarettes and now the
new management have refused to pay the 3rd party claiming that he did not have authority
to buy cigarettes.
Briefly EXPLAIN whether the 3rd party can sustain a claim against the Hotel giving
reasons for your decision. (7 Marks)
(c). Briefly examine the effects of breach of duties of the agent towards the principal
(6 Marks)
(TOTAL MARKS 20)
4.(a). Harry and Thuku agreed to meet for a business lunch at a restraint in Town. During the
lunch, Chuma one of Thuku’s friends joined the two and begun to participate in the
discussion Chuma told Harry that he was Thuku’s agent to which Thuku is not object. A
week later, Chuma obtained goods on credit from Harry, allegedly on behalf of Thuku.
Chuma has since disappeared and Harry is demanding payment from Thuku.
DECEDE and proceed to give situations of agency by Estpppel. (12 Marks)
(b). Nyamoita instructed Chirchir to sell her car and agreed to pay him Khs. 10,000/= as his
remuneration on completion of the sale. Chirchir sells the car and Nyamoita pays him.
Later Nyamoita discovers that Chirchir had also been paid a commission of Kshs.
5,000/= by the purchaser.
ADVISE Nyamoita whether she can sue Chirchir and if so, what remedies are available
to her under Law of Agency. (8 Marks)
(TOTAL MARKS 20)
5. Write explanatory Notes on the following:-
(a). Rights of agent against the Principal. (5 Marks)
(b). The difference between conditions and warranties under Cap 31 Laws of
Kenya. (8 Marks)
(c). Differences between actual Sale and an Agreement to sell under Cap 31
Laws of Kenya. (7 Marks)
(TOTAL MARKS 20)
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