BUSINESS LAW
July 2018
THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN SUPPLY CHAIN MANAGEMENT
DIPLOMA IN BUSINESS MANAGEMENT
DIPLOMA IN CO-OPERATIVE MANAGEMENT
DIPLOMA IN INVESTMENT MANAGEMENT
DIPLOMA IN HUMAN RESOURCE MANAGEMENT
MODULE I
BUSINESS LAW
1. a) Explain five ways in which operation of law terminates agency. (10 Marks)
(b) One of the key functions of the National Assembly is to make law. Explain five circumstances under which the National Assembly may undertake this mandate. (10 marks)
2. (a) Explain five rights of a tenant as against the landlord. (10 marks)
(b) Explain five functions of the Supreme Court of Kenya. (10 marks)
3. (a) Explain six conditions that must be fulfilled for agency by ratification to arise. (12 marks)
(b) Meritus and Wiber entered into a contract which Wiber was to sell a parcel of land to Meritus at Ksh. 1 M. The amount was payable over five months in equal instalments. Before the last instalment was paid, the government announced that all land in that area was to be compulsorily acquired for the construction of a dam. Meritus is aggrieved that the parcel of land would no longer be available to him. He intends to sue Wiber for breach of contract.
Outline the legal principles applicable in this case. (8 marks)
4. (a) Highlight six grounds upon which gifts in contemplation of death would be valid. (12 marks)
(b) Outline four differences between slander and libel. (8 marks)
5. (a) Explain six instances when an employee may by his conduct breach his obligation under contract of service. (12 marks)
(b) Jane and Moses were friends for many years, however, Jane decided to terminate the relationship. She broke the news to Moses during his next visit. Moses, annoyed that Jane had broken their relationship stormed out of Jane’s house and locked the door from outside. Twenty minutes later, Jane decided to walk out of her house only to realise that the door had been locked. After three hours of confinement, she used the window to get out. She is aggrieved and intends to sue Moses for the inconvenience caused to her. Explain the legal principles applicable in this case. (8 marks)
6. (a) Highlight five powers that may be exercised by the President of Kenya. (10 marks)
(b) Outline five mistakes that may invalidate a contract. (10 marks)
7. (a) Outline six circumstances under which a judicial precedent may not bind a court of law. (12 marks)
(b) Explain four ways in which a will may be revoked. (8 marks)