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Dba 301: Business Law I Question Paper

Dba 301: Business Law I

Course:Bachelor Of Commerce

Institution: University Of Nairobi question papers

Exam Year:2012

INSTRUCTIONS:
1. Answer any THREE Questions.
2. All Questions carry EQUAL marks.

Question 1
(a) Discuss the following ways in which an agency may be created:
i) Estoppel. (5 marks)
ii) Necessity. (5 marks)
iii) Ratification. (5 marks)

(b) Kamau, a mercantile agent bought 100 tons of wheat for Wasike without any authority from Wasike on 10th November 2012. Wasike ratified this contract on November 20th 2012. On 16th November 2012, Awori informed Kamau that he had decided not to sell wheat to Wasike.
Discuss the legal position. (10 marks)

Question 2
Critically examine the following sources of the Kenyan Law:

i) The Constitution of Kenya. (9 marks)
ii) Legislation. (8 marks)
iii) Judicial Precedent. (8 marks)

Question 3
(a) Discuss the rules governing an Offer. (15 marks)

(b) Motor Parts Ltd. issued a prospectus offering its shares to the general public at Kshs. 10 per share. In response to this Onyango applied for 10,000 shares in Motor Parts Ltd. on 10th August 2012. On 26th August 2012 Motor Parts Ltd. alloted only 5,000 shares to Onyango. Onyango refused to take the share arguing that his offer was for 10,000 shares which Motor Part Ltd. had not accepted absolutely.

Discuss the legal position. (10 marks)

Question 4
(a) Before a binding contract may ensue, the parties must have an intention to create legal relations. Discuss. (15 marks)

(b) Chebii entered into a contract with Chemoi whereby he agreed to sell his house to Chemoi for Kshs. 10 Million. A term in the contract stipulated that ''this arrangement is binding in honour only''. Chebii later refused to sell his house to Chemoi.
Advise Chemoi. Will your answer be different if there was no such stipulation in the contract? (10 marks)

Question 5
Write explanatory notes on any TWO of the following:

(a) Acceptance of an Offer. (12 marks)
(b) Classification of Law. (12 marks)
(c) African Customary Law. (12 marks)

Dba 301: Business Law I Question Paper

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