(a) Contract of Guarantee.
(i) This is a contract whereby a party referred to as a guarantor or surety undertakes to be collaterally or secondarily responsible for the acts or defaults of another known as the principal debtor.
(ii) The undertaking is made to the creditor.
(iii) It is a tripartite agreement.
(iv) A contract of guarantee may be sole,
continuing or fidelity.
(v) It consists of three parties, namely the
guarantor principal debtor and creditor.
(vi) The guarantor liability is secondary.
(vii) The guarantor has no direct interest in the
contract between the creditor and the principal
debtor.
(b) Contract of Indemnity.
(i) This is a contract whereby a party known as indemnifier undertakes to be primarily responsible for the performance of a particular thing.
(ii) The contract consists of two parties, the indemnifier and the party to be indemnified.
(iii) The indemnifier has a direct interest in the
contract.
(iv) The indemnifiers liability is primary.
maurice.mutuku answered the question on May 2, 2018 at 13:17
-
Onyango signed a cheque and crossed it “not negotiable.” He told Atieno, his
secretary, to fill in a certain amount and to X?s name as payee....
(Solved)
Onyango signed a cheque and crossed it “not negotiable.” He told Atieno, his
secretary, to fill in a certain amount and to X‟s name as payee. Atieno filled in a
large amount made the cheque payble to Nairobi Harambee Secondary School and gave
it to her brother to take it to the school in order to pay the outstanding school fees. The
Nairobi Harambee secondary school cashed the cheque in good faith. Onyango wants to
know his rights, if any, against the school. Advice onyango.
Date posted:
May 2, 2018
.
Answers (1)
-
Examine the circumstances in which a banker has no authority to honour a cheque drawn
on him.
(Solved)
Examine the circumstances in which a banker has no authority to honour a cheque drawn
on him.
Date posted:
May 2, 2018
.
Answers (1)
-
Explain how an unpaid seller may lose the right of lien and stoppage in transitu.
(Solved)
Explain how an unpaid seller may lose the right of lien and stoppage in transitu.
Date posted:
May 2, 2018
.
Answers (1)
-
Explain the advantages of administrative tribunals over courts of law.
(Solved)
Explain the advantages of administrative tribunals over courts of law.
Date posted:
May 2, 2018
.
Answers (1)
-
Courts of law are not the only means by which disputes may be resolved.
Administrative tribunals have been held to be alternatives to the courts of...
(Solved)
Courts of law are not the only means by which disputes may be resolved.
Administrative tribunals have been held to be alternatives to the courts of law in the
dispensation of justice.
In light of the above statement:
What do you understand by administrative tribunals?
Date posted:
May 2, 2018
.
Answers (1)
-
In relation to the law of tort, explain what constitutes the tort of negligence.
(Solved)
In relation to the law of tort, explain what constitutes the tort of negligence.
Date posted:
May 2, 2018
.
Answers (1)
-
Mutiso owned a bakery in Kangundo Town. He sold it last year to Munyao. He agreed, as
part of the sale, not to carry on a...
(Solved)
Mutiso owned a bakery in Kangundo Town. He sold it last year to Munyao. He agreed, as
part of the sale, not to carry on a bakery business for a period of 3 years within 200 miles
radius of the bakery he had sold. He has now decided to open a bakery in Machakos Town
and seeks your advice as to whether he can legally do so. What advice would you give him?
Date posted:
May 2, 2018
.
Answers (1)
-
Attempt a classification of cheques.
(Solved)
Attempt a classification of cheques.
Date posted:
May 2, 2018
.
Answers (1)
-
Write brief notes on Judges.
(Solved)
Write brief notes on Judges.
Date posted:
May 2, 2018
.
Answers (1)
-
Write brief notes on Judicial service commission.
(Solved)
Write brief notes on Judicial service commission.
Date posted:
May 2, 2018
.
Answers (1)
-
What are the functions of law in society?
(Solved)
What are the functions of law in society?
Date posted:
May 2, 2018
.
Answers (1)
-
Differentiate between National and international law.
(Solved)
Differentiate between National and international law.
Date posted:
May 2, 2018
.
Answers (1)
-
Distinguish between testate and intestate succession.
(Solved)
Distinguish between testate and intestate succession.
Date posted:
May 2, 2018
.
Answers (1)
-
Examine the salient obligations of the banker and customer in a banker and customer
relationship.
(Solved)
Examine the salient obligations of the banker and customer in a banker and customer
relationship.
Date posted:
May 2, 2018
.
Answers (1)
-
Distinguish between a cheque and a bill of exchange.
(Solved)
Distinguish between a cheque and a bill of exchange.
Date posted:
May 2, 2018
.
Answers (1)
-
Mpenda Raha traveled to London to watch the Golden Jubilee celebration of the
Queen's ascension to the throne. Mpenda Raha hired a room in a hotel...
(Solved)
Mpenda Raha traveled to London to watch the Golden Jubilee celebration of the
Queen's ascension to the throne. Mpenda Raha hired a room in a hotel from where
he would have an advantage view of the Queen‟s procession. On the appointed day,
Mpenda Raha could not view the procession due to crowds which obstructed his view of the
Queen's procession. Mpenda Raha is seeking for refund of his money which he had paid to the hotel.
Citing relevant legal principles, explain whether Mpenda Raha will
be successful in getting a refund of the money paid to the hotel.
Date posted:
May 2, 2018
.
Answers (1)
-
Explain whether there is a binding agreement where Tom wrote to Jerry offering to sell his car to him at 500,000. Jerry accepted Tom's offer...
(Solved)
Explain whether there is a binding agreement where Tom wrote to Jerry offering to sell his car to him at 500,000. Jerry accepted Tom's offer subject to the price being reduced to Sh. 450,000. It has
become apparent that Tom is not willing to sell the car for Sh. 450,000.
Jerry now writes to Tom agreeing to buy the car for Kshs. 500,000.
Date posted:
May 2, 2018
.
Answers (1)
-
Explain whether there is a binding agreement where Dick posted a letter offering to sell goods to Harman on certain terms. Upon
receipt of the letter,...
(Solved)
Explain whether there is a binding agreement where Dick posted a letter offering to sell goods to Harman on certain terms. Upon
receipt of the letter, Harman posted a letter accepting the offer. However, the
letter never reached Dick.
Date posted:
May 2, 2018
.
Answers (1)
-
“For an agreement to be legally binding offer and acceptance must be
communicated”. State and briefly explain the exceptions to this rule
(Solved)
“For an agreement to be legally binding offer and acceptance must be
communicated”. State and briefly explain the exceptions to this rule
Date posted:
May 2, 2018
.
Answers (1)
-
What is the significance of rule of law in a country?
(Solved)
What is the significance of rule of law in a country?
Date posted:
May 2, 2018
.
Answers (1)