Business Law I Question Paper
Business Law I
Course:Bachelor Of Commerce(Bcom) ()
Institution: Kabarak University question papers
Exam Year:2010
KABARAK
UNIVERSITY
UNIVERSITY EXAMINATIONS
2009/2010 ACADEMIC YEAR
FOR THE DEGREE OF BACHELOR OF COMMERCE
COURSE CODE: BMGT 313
COURSE TITLE: BUSINESS LAW I
STREAM:
Y3S1
DAY:
MONDAY
TIME:
9.00 - 11.00 A.M.
DATE:
09/08/2010
INSTRUCTIONS:
1. Answer question ONE and any other THREE question
2. Do not write anything on the question paper
3. All questions carry equal marks
4. The lecturer attaches importance to accuracy and cleanliness of expression
5. Time allowed is TWO hours
PLEASE TURN OVER
Page 1 of 3
QUESTION ONE
1. a) Richard, a minor by misrepresenting himself to be the age of 19 years, obtained a loan
from National Bank of Kshs 50,000 stating that the amount was badly needed by him
to complete his education. National bank, without making any further inquiry, lent the
amount to Richard. Can National Bank recover the amount from Richard? Give reason
for your answer.
(5marks)
b) Abel invited Bett to see a picture with him at the French Cultural Centre. Bett accepted
the offer. Abel purchased a ticket for Bett and waited for her at the Cinema hall. Bett
failed to turn up. Does Abel have a cause of action against Bett? Give reasons for your
answer. (5marks)
c) Ann offered to sell her vehicle to Ben for Kshs 600,000. Ben wrote back to Ann agreeing to buy
car for Kshs 550,000. Is there a contract between Ann and Ben for the sale of the vehicle for
Kshs 550,000? Explain.
(5marks)
d) Ann and Bay agreed that Ann should sell his house to Bay for a sum of Kshs
500,000 if he were to use the house for gambling. It is further agreed between them
that the consideration shall be paid after a year of registration of the house in the
name of Bay. Ann executes a transfer in favour of Bay. After six month, Bay uses the
house for gambling purpose. Discuss the rights of Ann against Bay. (5marks)
e) James commenced a periodic publication called “The Amour” and engaged John to
write a volume on ancient armour for it. For this John was to receive a sum of
Kshs 20,000 on completion of the work. When he had completed a part, but not the
whole of his volume, James abandoned the publication John sued James for recovery
of the amount contracted for. Decide.
(5marks)
Page 2 of 3
2. a) Discuss the conditions and warranties implied in a contract of Sale of Goods.
(9marks)
b) Explain the exceptions to the rule Nemo dat quod non habet. (6marks)
3. a) Explain the elements of a partnership.
(5marks)
b) With specific examples explain the duties of a partner to other partners. (10marks)
4. a) Discuss the essentials of a cheque.
(8marks)
b) Explain the procedure relating to Bankruptcy proceedings. (7marks)
5. a) Explain the various modes by which agency relationship may be created. 10marks)
b) Discuss what a plaintiff must prove in an action of Negligence. (5marks)
6. Write short notes in the following
a) The principle of contribution under insurance Law. (5marks)
b) Defamation.
(5marks)
c) Classification of Law.
(5marks)
Page 3 of 3
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