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Law I Question Paper

Law I

Course:Cpa Part I

Institution: Orbit School Of Management Studies question papers

Exam Year:2008

KASNEB
CPA PART I
LAW I

Answer any FIVE questions.

QUESTION ONE
a.
i. The doctrine of judicial precedent is unique to common law and has certain disadvantages.
Outline these disadvantages (4mks)

ii. Highlight the advantages of subsidiary legislation (8mks)

b. Briefly describe any two sources of unwritten law (8mks)

QUESTION TWO
a. In relation to the law of persons, write explanatory notes on the following:

i. Citizenship by naturalisation (4mks)
ii. Domicile of choice (4mks)
iii. Guardianship (4mks)

b. A partnership may be dissolved with or without a court order.
Highlight the circumstances which a partnership would be dissolved without a court order (8mks)

QUESTION THREE
Discuss the legal issues in each of the following cases:

a. Matthew offers to sell his car for Sh. 300,000. Hezekiah offers to by the car at Sh. 280,000. Matthew thereafter refuses to sell the car to Hezekiah. (6mks)

b. Ambrose is due to leave the country to study abroad for a period of five years. He decides to sell his household goods and therefore sends a letter to his long time friend, Duncan offering to sell the household goods to him. Duncan posts a letter to Ambrose accepting the offer. The letter does not reach Ambrose. (6mks)

c. Andrew, a tailor agrees to make school uniforms for Jennifer, the proprietor of Wadogo Kindergarten. Jennifer issues an order to Andrew to make 200 pieces of uniforms for the kindergarten. Andrew manages to make 170 pieces of the uniforms before he is taken ill and hospitalised.
Following his discharge from hospital, Andrew submits a claim for payment to Jennifer. Jennifer refuses to pay him on the ground that the contract was not fully executed (8mks)

QUESTION FOUR
a. Ratification is the legal term denoting the agency that arises when a person adopts a transaction which someone had concluded for him as his agent but without his express authority as illustrated in the case of Bolton Partners v Lambert (1889). Agency by ratification may however only arise under certain circumstances.

Explain the conditions which must be fulfilled for ratification to be effective (10mks)

b. Smith employed Hamilton as his agent in a business of selling cooking gas. For many years Hamilton role cooking gas to Havana Wholesalers.
Arising from a dispute in the work place, Smith dismissed Hamilton. Smith did not inform the proprietor of Havana Wholesalers about Hamilton''s dismissal.

After the dismissal, Hamilton proceeded to Havana wholesalers and collected cash amounting to Sh. 100,000 being balance payment due to Smith for cooking gas which had been delivered earlier. Hamilton did not remit the money to Smith.

Consequently, Smith has demanded payment of the balance of Sh. 100,000 from the proprietor of Havana wholesalers who has refused to pay on the grounds that he had already paid the money to Hamilton, the agent of Smith.

Analyse the legal principles applicable in this case and advise Smith. (10mks)

QUESTION FIVE
a.
i. In relation to the law of property, distinguish between ''ownership'' and ''possession'' (4mks)
ii. Explain the ways in which ownership of property may be acquired (6mks)

b. Elijah borrowed Sh. 3 millionm from Nendeni Bank Ltd. to set up his own business. He created a legal mortgage over his land as security for the loan. Elijah''s business which was initially growing fast started to decline due to stiff competition in the market.

Elijah subsequently defaulted in repayment of the loan to the bank.
Advise the bank on the remedies available to a legal mortgagee (10mks)

QUESTION SIX
a. Describe the legal remedies available in respect of trespass to land (10mks)

b. Abel Karim went for further studies abroad and was employed as a medical doctor after graduation. In June 2007, Abel Karim sent Sh. 5 million to his father to start a business of is chingad. Abel''s father opened a slaughter house and a neat processing factory in a town which was located close to his residential estate.
The water that is used in the factory drains through the residential estate and is enmiting an unbearable stench to the residents of the estate.
Omar, a resident of the estate has developed a disease which physicians have linked to the stench from the factory.
Omar seeks your legal advice,
i. Advise Omar and the residents of the estate on their legal rights (6mks)
ii. With reference to decided cases, outline the circumstances when a private individual could sue on his own behalf for public nuisance (4mks)

QUESTION SEVEN
a.
i. Explain the meaning of ''a will'' as defined in the Law of succession (2mks)
ii. A written will is only valid if it satisfies some formal requirements.
Outline there requirements (8mks)

b. Explain the general effects of revocation of a grant of letters of administration (10mks)

QUESTION EIGHT
a. Explain five reasons why a guarantee is disadvantageous to the creditor (10mks)

b. Highlight the circumstances when a guarantor may be discharged (10mks)

Law I Question Paper

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