Category: A CPA Business Law/Commercial Law Revision Question and Answers

Highlight the essentials of a contract for the sale of goods ANSWER Parties are invariably the buyer and the seller. The seller sells or agrees to sell while the buyer buys or agrees to buy goods. Transfer or passing of Open …

Highlight the circumstances under which a partnership would be dissolved on the application of a partner ANSWER A partner has become a lunatic or is permanently of unsound mind. A partner is permanently incapable of discharging his obligations as a Open …

Explain the advantages of a private company over a public company ANSWER Subscribers are in a position to control membership. Transfer of shares is restricted, members determine who may join. It is the best vehicle for family business. Subject to Open …

State and explain the contents of the memorandum of association ANSWER Name clause: describes the name of the company with “Limited” or “Ltd” as the last word thereof for companies Limited by shares or guarantee. Registered office clause: states that Open …

Describe the ways in which a corporation may be established ANSWER By registration: these are companies incorporated pursuant to the provisions of the Companies Act. Their creation is evidenced by a certificate of incorporation. The company may be public or Open …

JUDICIAL SERVICE COMMISSION Establishment: It is established by Article 171 of the Constitution. Composition/Membership Under Article 171 (2) or the Act, the Judicial Service Commission shall consist of: The Chief Justice, who shall be the chairperson of the Commission; One Open …

Summarise the advantages of arbitration as a form of settling disputes ANSWER Informality: free from technicalities which characterize ordinary courts of law. Speed: it is a faster method of dispute resolution. Cheap: there is a saving on cost. Less acrimonious: Open …

Define the term “delegated legislation” and discuss its advantages and disadvantages ANSWER This is indirect, subordinate or subsidiary legislation. It is law made by parliament indirectly. These are by-laws, rules, orders, regulations statutes or proclamations made by subordinate competent bodies Open …

Explain the requirements which local customs should fulfill in order to gain registration and enforcements by the courts ANSWER Reasonableness: a good local custom must be reasonable to the persons affected by it. This is because law is founded on Open …

Define the term source of law and outline the main sources of law ANSWER The phrase “Sources of Law” literally means where rules of law are found. However, the phrase has been used to describe: The origins of the rules Open …