Get premium membership and access questions with answers, video lessons as well as revision papers.
(i) Limited liability: members are as a general rule not liable to make good the debts
of corporation. In registered companies, members can only be called upon to contribute
the amount unpaid on their share or the amount they undertook to contribute.
(ii) Perpetual succession: a corporation is a creation of law. It has no body, mind or
soul.Its life lies in the intendment of law. Death of a member has no effect on its
existence. It has capacity to exist in perpetuity.
(iii) Sue be sued: as a legal person with rights and subject to obligations, a corporation
has capacity to sue to enforce the rights and may be sued on its obligation. As was the
case in Foss V. Harbottle (1843).
(iv) Owning of the property: a corporation has capacity to own property. The property of a
corporation is vested in it and not on its members. It can therefore insure such property
as it has an insurable interest in it. It was so held in Macaura V. NorthernAssurance Co.
Ltd. (1925).
(v) Legal or corporate personality: corporations are legal persons in their own right
that is, they have an independent legal existence with distinct rights and subject to
obligations. In company law, once a company is formed it becomes a legal person,
distinct and separate from its members – it was so held in Salomon V. Salomon and Co.
Ltd.
(vi) Capacity to the contract: corporations have legal capacity to enter into
contractual relationships in pursuit of their objects. Additionally, they have capacity to
hire and fire. It was so held in Lee V. Lees Air Farming Co. Ltd (1961).
maurice.mutuku answered the question on May 3, 2018 at 08:04
- Identify and explain the various types of corporations.(Solved)
Identify and explain the various types of corporations.
Date posted: May 3, 2018. Answers (1)
- What is a lien? Explain the various types of lien.(Solved)
What is a lien? Explain the various types of lien.
Date posted: May 3, 2018. Answers (1)
- List and explain the general duties of a bailee and the bailor in a contract of bailment.(Solved)
List and explain the general duties of a bailee and the bailor in a contract of bailment.
Date posted: May 3, 2018. Answers (1)
- “Payment of a lesser sum of the day is satisfaction of a large sum is not sufficient consideration
for the creditor's promise to accept such payment...(Solved)
“Payment of a lesser sum of the day is satisfaction of a large sum is not sufficient consideration
for the creditor's promise to accept such payment in full settlement of the debt.” Discuss.
Date posted: May 3, 2018. Answers (1)
- Atieno and Nafula are neighbours in Kijiji Bandi village. Last year, Atieno quarreled
with Natula's employee, Nafula's employee collected stinking rubbish from a
compost heap in Nafula's...(Solved)
Atieno and Nafula are neighbours in Kijiji Bandi village. Last year, Atieno quarreled
with Natula's employee, Nafula's employee collected stinking rubbish from a
compost heap in Nafula's compound and threw it into Atieno's compound.
Atieno is aggrieved by this action and seeks your legal advice.
Advice as to her legal rights and course of action to take.
Date posted: May 3, 2018. Answers (1)
- Examine the extent to which an employer is liable for the torts committed by an
independent contractor.(Solved)
Examine the extent to which an employer is liable for the torts committed by an
independent contractor.
Date posted: May 3, 2018. Answers (1)
- Explain the principle of vicarious liability.(Solved)
Explain the principle of vicarious liability.
Date posted: May 3, 2018. Answers (1)
- K. Kemei want to buy a new car for G. N Motors Ltd. He selected a new and nice
looking car and was informed by G....(Solved)
K. Kemei want to buy a new car for G. N Motors Ltd. He selected a new and nice
looking car and was informed by G. N. Motors Ltd that the car was new and free from
any defects K. Kemei signed a sale agreement with the motor company which partly
read “…..no condition or warranty that the vehicle is road worthy or as to its age
or fitness for any purpose is given or implied by the seller. Goods once sold cannot be
returne.”
When the car was delivered to K. Kemei after paying for it, he discovered to his surprise that it
was a second hand car of the same make as the car he had selected but with several major
mechanical defects.
G. N Motors Ltd. insists that he sale was validly concluded and that they cannot be liable to K.
Kemei under any circumstances.
Advise Kemei.
Date posted: May 3, 2018. Answers (1)
- Discuss the rules that affect the effectiveness of exemption clauses.(Solved)
Discuss the rules that affect the effectiveness of exemption clauses.
Date posted: May 3, 2018. Answers (1)
- Write explanatory notes on law society of Kenya.(Solved)
Write explanatory notes on law society of Kenya.
Date posted: May 3, 2018. Answers (1)
- Write explanatory notes on duties or obligations of an advocate.(Solved)
Write explanatory notes on duties or obligations of an advocate.
Date posted: May 3, 2018. Answers (1)
- What were the weaknesses of the common law?(Solved)
What were the weaknesses of the common law?
Date posted: May 3, 2018. Answers (1)
- How is the supremacy of the constitution as a source of law manifested?(Solved)
How is the supremacy of the constitution as a source of law manifested?
Date posted: May 3, 2018. Answers (1)
- In what circumstances may a party challenge an arbitral award in the High Court?(Solved)
In what circumstances may a party challenge an arbitral award in the High Court?
Date posted: May 3, 2018. Answers (1)
- Explain the type of crossing that may be made on a cheque, highlighting the significance
of each type.(Solved)
Explain the type of crossing that may be made on a cheque, highlighting the significance
of each type.
Date posted: May 3, 2018. Answers (1)
- Define the term “a cheque”(Solved)
Define the term “a cheque”
Date posted: May 3, 2018. Answers (1)
- Discuss the contractual capacity of Corporations.(Solved)
Discuss the contractual capacity of Corporations.
Date posted: May 3, 2018. Answers (1)
- Discuss the contractual capacity of undischarged bankrupts.(Solved)
Discuss the contractual capacity of undischarged bankrupts.
Date posted: May 3, 2018. Answers (1)
- Discuss the contractual capacity of persons of unsound mind.(Solved)
Discuss the contractual capacity of persons of unsound mind.
Date posted: May 3, 2018. Answers (1)
- Discuss the statutory Provisions governing occupiers liability in Kenya.(Solved)
Discuss the statutory Provisions governing occupiers liability in Kenya.
Date posted: May 3, 2018. Answers (1)