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Hbc2243:Business Law Question Paper
Hbc2243:Business Law
Course:Bachelor Of Commerce
Institution: Meru University Of Science And Technology question papers
Exam Year:2013
QUESTION ONE (30 MARKS)
a) Meru Motor sports Ltd, repairs and dealers of second hand car. Sold motor vehicles registration number KZZ 200B to one Mwenda Mungania for shs. 800,000. The agreement entered between the seller and the buyer read as follows:
Meru Moto sports Ltd Box 1000 MERU 1st June 2012 Sale agreement To whom it may concern.
Sale of Motor vehicle KZZ 200B Nyayo Car
We, Meru Motor sports Ltd fo P.O BOX 1000-60200 Meru have today sold the above mentioned vehicle to one enda ungania of ID No. 1234567 of P.O BOX 200-69200 Meru for an agreed price of sh. 800,000.00 ( Eight Hundred Thousand shillings only) and have released the vehicle to the buyer awaiting a balance of Shs. 200,000.00
Please note that the logbook duly signed transfer forms and relevant documents shall only be released upon completion of final payment of the balance which is Shs. 200,000.00 (Two Hundred Thousand shilling only)
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As for the balance of Shs. 200,000.00 (Two hundred thousand shilling only) it has been agreed that the buyer mentioned above will settle the balance within 30 days or less (i.e July 2012) from to date. lease note also that the vehicle has been sold on “as is here is basis and has been test driven before sale was finalized and found to be in good working condition. Therefore no claim whatsoever shall be
entertained hereafter.
Yours sincerely
Sales Director: Buyer:
Witnessed By: 1st Patel James 2nd Jones Jane
After the expiry of one month from the date of the agreement, the buyer did not make payment of the remaining balance of shs. 200,000.00. The buyer has not made payment either six (6) months after. On 20th December, 2012 the seller received a demand letter from M/S XYZ and Co. Advocates, acting for Mwenda Mungania demanding the immediate release of the logbook to either their client and transfer the document to his name alleging that he had paid the remaining balance to Meru Motor sports Ltd and then account was duly acknowledged.
Required:
(i) Assuming you are the Advocate acting for Meru Motor sports, advise your client on the next course of action taking into consideration that Meru Motor sport have denied having received the amount. (10 Marks)
(ii) List and explain six right and duties of partners among themselves. (10 Marks)
(iii) List and explain the exceptions to the rule nemo dat quod non habet” in the relation to contract of sale of goods. (10 Marks)
QUESTION TWO (20 MARKS)
a) Discuss the various ways in which an insurance contract may be discharged. (10 Marks)
b) Explain by giving examples, what illegal partnerships are. (10 Marks)
QUESTION THREE (20 MARKS)
Discuss the importance of the law you have learnt in the business environment. (20 Marks)
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QUESTION FOUR (20 MARKS)
a) Discuss five guarantors rights against the creditor in the contract of guarantee. (10 Marks)
b) Discuss the implied authority of a partner. (10 Marks)
QUESTION FIVE (20 MARKS)
a) Distinguish between a contract of guarantee and a contract of indemnity. (10 Marks)
b) Explain the position of railways as a common carrier. (5 Marks)
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