Get premium membership and access questions with answers, video lessons as well as revision papers.
- This problem is based on the twin principle of contribution and apportion of insurance
applicable in circumstances in which a person takes out more than one policy on the same
subject matter and risk.
- In this case Akili Mingi has taken out two policies on the house with different insurers and
has also insured his household goods for Kshs. 5,000,000 and risk has attached.
- My advise to the insurance companies is that since risk has attached Lipa Insurance Co. Ltd
is obliged to pay Akili Mingi Ksh. 5 million for the stolen goods.
- Linda Mali and Pokea Insurance companies are obliged to indemnify Akili Mingi for the loss
suffered on the basis of apportionment of liability depending on the sum assured with each
of them. Linda Mali Co. Ltd must pay
15,000,000/25,000,000 x 20,000,000 = Ksh. 12,000,000
While pokea insurance co. Ltd must pay
10,000,000/25,000,000 x 20,000,000 = Ksh. 8,000,000
- The total amount payable to Akili Mingi for the house is Kshs. 20,000,000.
- Our calculations are based on the assumption that he policies were not subjected to average
otherwise the amount recoverable by Akili Mingi would have been Kshs. 15,000,000 as the
house is under insured. In which case Lina Mali Co. Ltd would pay Kshs. 9,000,000 while
Pokea Insurance Company Ltd would pay Kshs 6,000,000.
raphael answered the question on April 16, 2018 at 17:45
- In relation to the law governing Negotiable Instruments, explain four types of
endorsements that may be made on a Bill of Exchange.(Solved)
In relation to the law governing Negotiable Instruments, explain four types of
endorsements that may be made on a Bill of Exchange.
Date posted: April 16, 2018. Answers (1)
- Discuss the main exceptions to the rule “Nemo dat quod non habet”.(Solved)
Discuss the main exceptions to the rule “Nemo dat quod non habet”.
Date posted: April 16, 2018. Answers (1)
- Explain the meaning of the rule “Nemo dat quod non habet” as stipulated in the Sale of
Goods Act.(Solved)
Explain the meaning of the rule “Nemo dat quod non habet” as stipulated in the Sale of
Goods Act.
Date posted: April 16, 2018. Answers (1)
- Discuss the various equitable remedies which may be available to an injured party who
is suing for breach of contract.(Solved)
Discuss the various equitable remedies which may be available to an injured party who
is suing for breach of contract.
Date posted: April 16, 2018. Answers (1)
- Kamau advertised the sale of his farm. He was approached by Keter who wanted to buy the farm. In the course of negotiating the price....(Solved)
Kamau advertised the sale of his farm. He was approached by Keter who wanted to buy the farm. In the course of negotiating the price. Keter asked Kamau how many sheep could be reared on the farm and Kamau replied, “I have not used the farm for sheep rearing but I think it could support 2000 sheep.”
Keter bought the farm and immediately purchased 2000 sheep to rear on it. However, the firm is unable to accommodate the 2000 sheep and Keter is aggrieved and intends to sue Kamau for misrepresentation.
Advise Kamau.
Date posted: April 16, 2018. Answers (1)
- When parties enter into a contract it is virtually impossible for them to include express
terms to cover every eventuality. Explain the circumstances under which:
(i) The...(Solved)
When parties enter into a contract it is virtually impossible for them to include express
terms to cover every eventuality. Explain the circumstances under which:
(i) The courts
(ii) The statutes
Will imply terms into the contract.
Date posted: April 16, 2018. Answers (1)
- You have been asked to draft a partnership deed for a small retail firm of five partners. State the matters, if any, that you will...(Solved)
You have been asked to draft a partnership deed for a small retail firm of five partners. State the matters, if any, that you will omit from the partnership deed on the basis that they are implied by the Partnership Act (Cap 29) Laws of Kenya.
Date posted: April 15, 2018. Answers (1)
- Describe the advantages of carrying on business as a partnership as opposed to a limited
liability company.(Solved)
Describe the advantages of carrying on business as a partnership as opposed to a limited
liability company.
Date posted: April 15, 2018. Answers (1)
- State four acts of commission that may constitute professional misconduct under the
Accountants Act (Cap 531) Laws of Kenya.(Solved)
State four acts of commission that may constitute professional misconduct under the
Accountants Act (Cap 531) Laws of Kenya.
Date posted: April 15, 2018. Answers (1)
- Explain the nature and advantages of commercial arbitration as a means of settling disputes.(Solved)
Explain the nature and advantages of commercial arbitration as a means of settling disputes.
Date posted: April 15, 2018. Answers (1)
- Explain each of the following rules of Statutory Interpretation;
(i) Noscitur a sociis;
(ii) Ejusdem generic;
(iii) Mischief rule.(Solved)
Explain each of the following rules of Statutory Interpretation;
(i) Noscitur a sociis;
(ii) Ejusdem generic;
(iii) Mischief rule.
Date posted: April 15, 2018. Answers (1)
- Define Statute law and discuss its advantages(Solved)
Define Statute law and discuss its advantages.
Date posted: April 15, 2018. Answers (1)
- Explain the rules that govern the measure of damages in the law of contract.(Solved)
Explain the rules that govern the measure of damages in the law of contract.
Date posted: December 30, 2016. Answers (1)