Roy Simiyu, a successful businessman would like to obtain some funds for expansion of his business premises through a mortgage facility. Roy Simiyu would like to know what options would be available to the bank with regard to the proposed Open …
Category: A CPA Business Law/Commercial Law Revision Question and Answers
CPA Business Law/Commercial Law Revision Question and Answers
Hassan Payuka is the proprietor of Parrot Daily Newspaper which published an article two weeks ago to the effect that Mrs. Rose Brown the managing director of Child Welfare Organisation had embezzled, Sh. 5 million from the organization to purchase a private residential house for herself and family. Investigations have revealed that Mrs. Rose Brown bought the house out of a loan of Sh. 6 million advanced to her by East Bank and secured on the house. Mrs. Rose Brown is aggrieved and seeks your legal advice. Advise her.
Hassan Payuka is the proprietor of Parrot Daily Newspaper which published an article two weeks ago to the effect that Mrs. Rose Brown the managing director of Child Welfare Organisation had embezzled, Sh. 5 million from the organization to purchase Open …
Abraham instructed Sarah, an auctioneer to sell his house by auction. The sale was subject to a reserve price of Sh. 1 million. Sarah advertised the house stating that it was subject to a reserve price. However, she sold the house to her Sister Mary at Sh. 900,000. Abraham has refused to accept the proceeds and to transfer the house to Mary. Mary has demanded the transfer of the house by Abraham to her. Explain the legal position of Abraham, Sarah and Mary.
Abraham instructed Sarah, an auctioneer to sell his house by auction. The sale was subject to a reserve price of Sh. 1 million. Sarah advertised the house stating that it was subject to a reserve price. However, she sold the Open …
Mr. A, a car dealer sells second hand cars. On Thursday last week, he placed an advertisement in a daily newspaper which stated the following: “Once in a lifetime, opportunity to own a one year old Nissan Caravan, low mileage, Kshs.500,000 cash. The offer is valid for only one day and the car will go to the first person who accepts it.” When Mr. B saw the advertisement, he immediately posted a letter of acceptance of Mr. A‟s offer. Mrs. C also saw the advertisement and came to inspect the car after which Mrs. C offered Mr. A a cheque of Kshs. 500,000. However, Mr. A refused to accept the cheque stating that another potential buyer had already offered to buy the car. Later in the day Ms D, another interested buyer telephoned Mr. A informing him that she was willing to buy the car but asked Mr. A if he would keep the offer open until she could go to her bank to obtain a loan. Mr. A accepted the request. However later, in the day, Mr. E, another potential buyer said that he would pay Sh. 600,000 in cash for the car. Mr. A agreed to sell the car to Mr. E. On Monday morning, Mr. A received Mr. B‟s letter of acceptance. At the same time, Mr. E returned to complete the transaction. However, in the afternoon Mr. E telephoned Mr. A to say that he had second thoughts and he no longer wished to purchase the car. Citing relevant decided cases where applicable, explain the legal principles in the case in relation to: (a) Mr. A (4 marks) (b) Mr. B (4 marks) (c) Mrs. C (4 marks) (d) Ms. D (4 marks) (e) Mr. E (4 marks)
Mr. A, a car dealer sells second hand cars. On Thursday last week, he placed an advertisement in a daily newspaper which stated the following: “Once in a lifetime, opportunity to own a one year old Nissan Caravan, low mileage, Open …
Peter Ole Yang, while driving his car down Valley View road suddenly realized the brakes of the car had failed. Unable to stop the car he crashed into a motor vehicle driven by James Kagio, damaging James Kagio’s motor vehicle and injuring him. Advise Peter Ole Yang as to his civil liability.
Peter Ole Yang, while driving his car down Valley View road suddenly realized the brakes of the car had failed. Unable to stop the car he crashed into a motor vehicle driven by James Kagio, damaging James Kagio’s motor vehicle Open …
Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings) to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed the money for and Simiyu Tito replied that he needed Shs. 2,000 (two thousand shillings) to buy food for his children and Shs. 3,000 (three thousand shillings) to bribe someone who could fix for him a person who had been bothering him. Wanyonyi Peter lent Simiyu Tito the money. A month later, when Wanyonyi Peter asked Simiyu Tito for repayment of the Shs. 5,000 (five thousand shillings), Simiyu Tito refused to do so. Explain the legal principles applicable in this case and advise Wanyonyi Peter
Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings) to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed the money for and Simiyu Tito replied that he needed Shs. 2,000 (two thousand Open …
Charlie Kabue has discovered that Ray Matata has rented out the room used as a store of the shop to Ben Chege. Moreover, Ray Matata is in rent arrears. Mr. Charlie Kabue is aggrived and seeks your advice on the remedies available to him. Advise him.
Charlie Kabue leased his shop at High Pole Commercial centre to Ray Matata for a period of two years. In the lease agreement, Ray Matata was prohibited from using the shop for any other business other than for sale of Open …
Abel Rigo received a bill of exchange for value from Boaz Ngao who had obtained the instrument fraudulently. Abel Rigo fearing that the bill might lapse, presented it for payment whereupon it was dishonoured. State with reasons whether Abel Rigo can claim to be a holder in due course.
Abel Rigo received a bill of exchange for value from Boaz Ngao who had obtained the instrument fraudulently. Abel Rigo fearing that the bill might lapse, presented it for payment whereupon it was dishonoured. State with reasons whether Abel Rigo Open …
Mrs. Mutua employed Emmah as her sales agent. For several years Emmah sold goods to Mrs Cool, the proprietor of Ever Smart Boutique. Subsequently, Mrs. Mutua dismissed Emmah but did not inform Mrs. Cool of Emmah‟s dismissal. After her dismissal, Emmah collected Sh. 50,000 from Mrs. Cool on behalf of Mrs. Mutua. Mrs. Mutua has demanded the Sh. 50,000 from Mrs Cool who has refused to pay as she had already paid Emmah. Mrs Mutua intends to sue Mrs Cool. Advise Mrs. Mutua.
Mrs. Mutua employed Emmah as her sales agent. For several years Emmah sold goods to Mrs Cool, the proprietor of Ever Smart Boutique. Subsequently, Mrs. Mutua dismissed Emmah but did not inform Mrs. Cool of Emmah‟s dismissal. After her dismissal, Open …
Abdalla, the proprietor of Hesabu House, place a warning sign outside the entrance of the building that the floors of the premises were slippery. Makanyanga who was in a hurry to attend tuition classes did not see the notice. As Makanyanga was rushing to class, he slipped, fell and fractured his hand. He now seeks compensation from Abdalla. Discuss the legal position of both parties.
Abdalla, the proprietor of Hesabu House, place a warning sign outside the entrance of the building that the floors of the premises were slippery. Makanyanga who was in a hurry to attend tuition classes did not see the notice. As Open …