- This problem is based on the obligations of the customer in a banker-customer relationship.
- In this case Mr. Karanja has lost Kshs. 300,000 to Hatari who completed the cheque and encashed it.
- It is evident that there is a banker-customer relationship between Karanja and the banker.
Karanja therefore owes the banker a duty of care when drawing cheques to avoid alteration.
- Mr. Karanja is not only careless but negligent by signing blank cheques. It is clear that Mrs.
Karanja is equally negligent hence the loss. The Karanjas have no one to blame other than themselves.
- My advise to the bank is that there is no cause for alarm as the Karanjas have no sustainable
claim against it if they were sue. The bank has a watertight defence of negligence on the part of the Karanjas.
- My advise is based on the decision in London Joint Stock Bank Ltd V. Mcmillan andArthur
whose facts were substantially similar.
raphael answered the question on April 17, 2018 at 18:49
- Briefly state the various kinds of crossing on a cheque.(Solved)
Briefly state the various kinds of crossing on a cheque.
Date posted: April 17, 2018. Answers (1)
- “A contract of insurance is a contract of “Uberrimae fidei (utmost good faith)”. Explain this statement.(Solved)
“A contract of insurance is a contract of “Uberrimae fidei (utmost good faith)”. Explain
this statement.
Date posted: April 17, 2018. Answers (1)
- What liability is imposed on the seller of goods as regards their merchantable quality and
their fitness for the purpose of those goods?(Solved)
What liability is imposed on the seller of goods as regards their merchantable quality and
their fitness for the purpose of those goods?
Date posted: April 17, 2018. Answers (1)
- In relation to the Law of Succession, what are the duties of a personal representative?(Solved)
In relation to the Law of Succession, what are the duties of a personal representative?
Date posted: April 17, 2018. Answers (1)
- Due to Desmond's carelessness in allowing excessive electric current to develop in his generator, the electricity supply to the locality cut after a few hours....(Solved)
Due to Desmond's carelessness in allowing excessive electric current to develop in his generator, the electricity supply to the locality cut after a few hours. As a result, Derrick's factory was at a standstill during this period and he lost Sh. 50,000 by way of profits from lost production.
Advise Derrick in regard to his rights, if any, against Desmond.
Date posted: April 17, 2018. Answers (1)
- “An occupier of premises owes a duty of care towards persons who are lawfully on his premises. The Occupiers Liability Act does not affect the...(Solved)
“An occupier of premises owes a duty of care towards persons who are lawfully on his premises. The Occupiers Liability Act does not affect the position of trespassers.”
In relation to the above statement, what is the extent of potential liability of an occupier and to what extent can such an occupier safeguard such liability.
Date posted: April 17, 2018. Answers (1)
- Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to...(Solved)
Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to service the loan and is in arrears. The bank intends to realize the security and seeks your legal advice on what options they can take to realize the security.
Advise White bank.
Date posted: April 17, 2018. Answers (1)
- In relation to the Law of Property, state five obligations of a lessor towards a lessee in a
lease agreement.(Solved)
In relation to the Law of Property, state five obligations of a lessor towards a lessee in a
lease agreement.
Date posted: April 17, 2018. Answers (1)
- Annan agreed to paint Angela's house at an agreed price. When Annan had finished thework. Angela discovered that although most of the painting was satisfactory,...(Solved)
Annan agreed to paint Angela's house at an agreed price. When Annan had finished thework. Angela discovered that although most of the painting was satisfactory, Annan had forgotten to apply a coat of gloss paint on one of the doors. Annan fell ill and could not complete the work. Angela refused to pay Annan the contractual price, claiming that the contract had not been fully executed and that therefore he was entitled to be paid only a reasonable sum for the work he had actually undertaken. This, Annan
claimed, was much less than the contract price.
Advise Annan.
Date posted: April 17, 2018. Answers (1)
- How true is it to say that in order for a contract to be discharged by performance, the
performance must be precise and exact?(Solved)
How true is it to say that in order for a contract to be discharged by performance, the
performance must be precise and exact?
Date posted: April 17, 2018. Answers (1)
- “A corporation may be defined as a legal entity or artificial person.” Explain what is
meant by this statement.(Solved)
“A corporation may be defined as a legal entity or artificial person.” Explain what is
meant by this statement.
Date posted: April 17, 2018. Answers (1)
- Explain three characteristics of a private limited company(Solved)
Explain three characteristics of a private limited company.
Date posted: April 17, 2018. Answers (1)
- Differentiate between a Memorandum of Association and Articles of Association of a registered company and detail the contents of the Articles of Association.(Solved)
Differentiate between a Memorandum of Association and Articles of Association of a registered company and detail the contents of the Articles of Association.
Date posted: April 17, 2018. Answers (1)
- The Business Premises Rent Tribunals are established under section 11 of The Landlord and Tenant (Shops, Hotels and Catering Establishment Act (Cap 301) Laws of...(Solved)
The Business Premises Rent Tribunals are established under section 11 of The Landlord and Tenant (Shops, Hotels and Catering Establishment Act (Cap 301) Laws of Kenya.
What purpose do these tribunals serve and what are their main and important powers as stipulated under the Act?
Date posted: April 17, 2018. Answers (1)
- Distinguish legal rights from equitable rights and outline the main equitable remedies
available to an aggrieved party(Solved)
Distinguish legal rights from equitable rights and outline the main equitable remedies
available to an aggrieved party.
Date posted: April 17, 2018. Answers (1)
- Describe the various branches of civil law(Solved)
Describe the various branches of civil law.
Date posted: April 17, 2018. Answers (1)
- Outline five classes of persons who may be classified as dependants for purposes of provision under the Succession Act.(Solved)
Outline five classes of persons who may be classified as dependants for purposes of provision under the Succession Act.
Date posted: April 16, 2018. Answers (1)
- In relation to the law of succession: (i) Define a will; (ii) Explain four formalities of a will.(Solved)
In relation to the law of succession:
(i) Define a will;
(ii) Explain four formalities of a will.
Date posted: April 16, 2018. Answers (1)
- In relation to the Sale of Goods Act, explain the circumstances when: (i) A buyer may reject the goods and repudiate the contract (ii) The...(Solved)
In relation to the Sale of Goods Act, explain the circumstances when:
(i) A buyer may reject the goods and repudiate the contract
(ii) The buyer may lose the right to reject the goods.
Date posted: April 16, 2018. Answers (1)
- Explain the remedies available to an unpaid seller against:(i) The goods; (ii) The buyer under the Sale of Goods Act.(Solved)
Explain the remedies available to an unpaid seller against:
(i) The goods;
(ii) The buyer under the Sale of Goods Act.
Date posted: April 16, 2018. Answers (1)