(b) Kamau took out a life insurance policy. The proposal form contained the questions: ‘What is your profession or occupation’? ‘Do you indulge in motor or motor-cycle racing? Kamau stated truthfully ‘Company Secretary’ in answer to the first question and ‘No’ to the second. The form contained no other questions about his pursuits, and Kamau did not disclose that he was a keen mountaineer. He has been killed by a fall while climbing Mount Kenya. Can his wife succeed against the insurers who have refused to pay?

(b) An insurance contract, unlike most other contracts, requires a higher standard of good faith between the parties; and the law imposes a duty on the parties to disclose to each other matters which would influence the other whether or Read More …

(a) A owes B Shs. 5,000 which he has failed to pay. B promises a rebate of Shs. 1,000, if A pays the balance at once. A pays Shs. 4,000 in full settlement and has obtained a receipt for it. Subsequently B demands the balance of Shs. 1,000. Advise A.

(a) Payment of a smaller sum in lieu of a larger sum, by the debtor, does not operate to discharge the whole debt. The only exceptions to this rule are that where the debtor pays a smaller sum at the Read More …

(a) define guarantee and explain how it differs from an indemnity contracts. (b) c and d go into a shop. C says to the shopkeeper ‘let him (d) have the goods, and if he does not pay you, i will. What kind of contract is this? would it make any difference in your answer if c said to the shopkeeper ‘let him (d) have the goods, i will see you paid’.

(a) A guarantee is a contract by one person to be answerable for the debts, de-fault or miscarriage of another, in case the latter should fail to perform his engagement. It differs from an indemnity contract in that: only two Read More …

Write short notes on any two of the following: 1. The scope of African Customary law. 2. The civil and criminal jurisdiction of District Magistrate’s Courts. 3. Delegated legislation.

After independence the Customary laws of Kenya have been accorded full recognition as a source of Kenya law. Section 3 of the Judicature Act, 1967, provides ‘ The High Court and all subordinate courts shall be guided by African customary Read More …

(a) What is meant by an indorsement on a bill of exchange, and in what circumstances is indorsement necessary? What is the legal position of an indorser? (b) A bill is payable to ‘Andrew or Order’. It is stolen from Andrew and the thief forges Andrew’s indorsement and indorses it to B, who takes it for value and in good faith. Does B acquire a good title?

(a) An indorsement is effected by the signature of the payee usually on the back of the bill. Bills payable to a specified person or to his order can be negotiated only by indorsement and delivery, i.e. unless the holder Read More …