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Contract Ii Question Paper
Contract Ii
Course:Bachelor Of Laws
Institution: Kenyatta University question papers
Exam Year:2008
KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
LAW
LCC 102: CONTRACT II
DATE:
Monday 1st December 2008
TIME: 8.00am-10.00am
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INSTRUCTIONS:
Answer question one and two other questions
1. “Damages are meant to put the plaintiff, so far as money can do it, in the same
position as if the contract had been performed”. Discuss [ 30 Marks]
2. Oman, is a 22 year old student at a Law school in Nairobi. He works part-time as
a supervisor in a factory owned and managed by his uncle. The factory is located
in Nairobi’s Industrial Area. He uses his earnings to pay part of his university
fees. His uncle seeks an overdraft facility from Pesa Bank Limited and requests
Oman to guarantee the payment of the loan. Oman duly obliges and signs the
guarantee contract. Oman’s uncle has defaulted in repayment and Pesa Bank
Limited intends to enforce their rights under the guarantee against Oman. Advise
Oman.
[20 marks]
3. In January 2007 while working in Mombasa, Kamau bought a car from his friend
Odero for Kshs 1,500,000. Odero had informed him that the car had been the
personal car of Mzee Tumbo, the Managing Director of Mombasa Shippers and
Forwarders Limited, the company for which Odero worked. In addition Odero
indicated that the vehicle had been chauffer driven and maintained in excellent
condition.
One month later Kamau moved to a new job in Nairobi and sold the car to Solo
for Kshs 1,000,000, telling him that it was a company managing director’s car and
had been carefully driven and maintained to a high standard.
2
Solo has now discovered that the managing director of Mombasa Shippers and
Forwarders Limited only had the car for two weeks while his own was being
repaired, and that it had previously been used by Jane a young sales representative
and former matatu driver who had a number of convictions for careless driving,
failing to stop at traffic lights and speeding and that parts of the body work of the
car are badly rusted.
Advise Solo as to the legal position.
[20 marks].
4. Peter engaged John to install a new heating system in his factory located in
Industrial Area Nairobi for Kshs 1,000,000. Peter paid Kshs 200,000 on the
signing of the contract documents. The agreement provided that the installation
would be deemed to be completed only after a one month trial and after Peter’s
engineer’s approval at the end of the trial.
After the new system had been on trial for 3 weeks, and before Peter’s engineers
had given approval, the factory was destroyed in a fire. The fire started in a
factory neighboring Peter’s factory though the negligence of a security guard
employed by Zed Security Limited.
Peter comes to you with a view to filing a claim. What would you advise him?
[20 Marks].
5. Explain the meaning and effect of :-
(i)
Undue influence
(ii)
non est factum
(iii)
Liquidated damages and penalty
[20 Marks]
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