Sale Of Goods,Agency And Negotiable Instruments. Bachelor Of Law(Llb). Question Paper

Sale Of Goods,Agency And Negotiable Instruments. Bachelor Of Law(Llb).

Course:Alternative Dispute Resolution

Institution: Kenyatta University question papers

Exam Year:2011

INSTRUCTIONS.
Answer question ONE and any other TWO.
Question One.
a) With reference to decided cases,briefly examine the concept of an agent's 'actual','presumed ' and 'apparent' authority. (10 Marks)
b) Malaika employs Angel as a worker to sell her goods which were lying in a warehouse in Mombasa.Angel sold the goods toMama Safi who paid the price by the means of a cheque drawn in the name Angel.Angel cashed the cheque and absconded with the money.Mama Safi had dealt with Malaika on two previous occasions on which she had allowed Angel to receive payment by cheque.However,before the transaction in question had taken place,Malaika had expressly forbidden Angel from receiving payment on her behalf and had put a notice to that effect in a local newspaper,
'The People Star'.Mama Safi had not seen the notice as she only reads the Times Nation newspaper.Malaika has brought an action against Mama Safi for the price of goods.
Advise the parties to their legal rights.
Question Two
Felix employs Max Ltd to sell general produce on his behalf.Max Ltd sells four large consignments of potatoes to W,X,Y,Z respectively.Before the consignments are delivered,Max Ltd finds out that the market price of potatoes has risen considerably and it therefore refuses to honour the four contracts.
a) Under the sale to X,Max Ltd contracted to sell ''for the account of Max Ltd'' Ksh 4,000 per ton when it was authorized to sell at the price of Ksh 5,500 per ton.
b) Under the sale to X,Max Ltd contracted to sell ''for the account of my principal'' at the price of Ksh. 3000 per ton when it was only authorized to sell at Ksh 4500 per ton.Y later discovers Felix's existence.
Advise parties in (a) and (b) above as to their respective rights. 20 Marks.
Question Three.
In the development of our law,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 the protection of commercial transactions: the person who takes in good faith and for value without notice should get a better title.The first principle has held sway for a long time,but it has been modified by the Common Law itself and by statute so as to meet the needs of our time.'' Per Denning L.J in Bishops Gate Motor Finance Corporation v Transport Brakes Ltd (1949) I KB 332.Discuss. 20 Marks.
Question Four.
a) Discuss the passing of property in auction sales.
b) Avril,your long friend,passes by your house one afternoon and informs you that she has found a new way of making quick money.On enquiring,she informs you that an organization in Nairobi is willing to buy one of her kidneys for a handsome amount of money.She further informs you that she has made all the necessary arrangements with the coming week.
From a sale of goods perspective,what advice would you give Avril? (20 Marks.)
Question Five.
Discuss the statutory duties of a holder of a Bill of Exchange.20 marks.

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