Commercial and administrative law November 2016 Past Paper KNEC Diploma

1. (a) Explain six circumstances under which a seller with no title in goods may pass a good title to a buyer. (12 marks)

(b) Explain four purposes of administrative law. (8 marks)

2. (a) Highlight six circumstances under which a partner in a trading firm has implied authority to bind the partnership. (12 marks)

(b) Explain four acts that may constitute jurisdictional errors by a public body. (8 marks)

3. (a) Jonathan had insured his premises against fire with Chunga Insurance Ltd. He entered into a sale agreement with Jaila over the same premises. Jaila paid the full purchase price. Before conveyance of title had taken place, the premises were completely destroyed by fire. Jaila has approached Chunga Insurance Ltd for compensation. Chunga Insurance Ltd. have declined to pay him. Jaila is aggrieved and intends to sue. Explain the legal principles applicable to this case. (10 marks)

(b) Explain five circumstances under which a court of law may declare delegated legislation invalid. (10 marks)

4. (a) Explain five circumstances under which a person’s right to be heard is not breached. (10 marks)

(b) Jadin contracted to build three flats for Lewa. The money was payable in three instalments. Each instalment was to be paid upon completion of each flat. Hedan became surety for the complete performance of the work by Jadin.
Lewa allowed Jadin to draw the second instalment before the second flat was completed. Hedan is aggrieved by this change and intends to take legal action to be discharged from the contract of guarantee. Explain the legal principles applicable in this case. (10 marks)

5. (a) Explain six offences that may be committed by a bankrupt. (12 marks)

(b) Explain four shortcomings of commercial arbitration as a dispute resolution method. (8 marks)

6. (a) In relation to the law of negotiable instruments, explain five types of qualified acceptance. (10 marks)

(b) Outline five differences between a bill of lading and a charter party. (10 marks)

7. (a) Explain six disadvantages of forming and running a public limited company, in the eyes of the law. (12 marks)

(b) In relation to bailment, explain four duties of a bailor. (8 marks)

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