Commercial and Administrative Law July 2016 Past Paper KNEC Diploma

1. (a) Explain five circumstances that may lead to compulsory winding up of a court of (10 marks)

(b) In relation to the law of carriage, highlight five duties of a common carrier. (10 marks)

2. (a) Outline four characteristics of contract bf We of goods. (8 marks)

(b) Explain six reasons that have contributed to the increased use of administrative tribunals in resolving disputes. (12 marks)

3. (a) John drew an open cheque for Ksh 15,000 in favour of his clerk, Mark. The cheque was duly signed and dated by John. John wrote Ksh 15,000 in figures but as he was in a hurry, he asked Mark to insert the amount in words and also write his name as the payee. Mark altered the amount in figures to read Ksh 95,000 and also wrote this amount in words. Mark cashed the cheque and disappeared. John has learnt that Mark withdrew Ksh 95,000.

John is aggrieved and seeks to bring an action against Mark in a court of law.

(i) Explain the legal principles applicable in this case. (6 marks)
(ii) Advice the bank on the defence available to it. (2 marks)

(b) Explain six benefits of using arbitration for dispute resolution. (12 marks)

4. (a) In relation to the law of bankruptcy, highlight five restrictions of a person who has been declared bankrupt by a court of law. (10 marks)

(b) Outline five objectives that the devolved system of government aims to achieve. (10 marks)

5. (a) Explain six features of a partnership form of business unit. (12 marks)

(b) It Explain four circumstances under which a contract of guarantee is held to be invalid. (8 marks)

6. (a) Explain five principles of the doctrine of AUDI ALTERAM PARTEM. (The right to a fair hearing) (10 marks)

(b) In relation to the contract of bailment, highlight five duties of a bailee. (10 marks)

7. (a) Explain four grounds for judicial review. (8 marks)

(b) In relation to the law of insurance, highlight six requirement an insurable risk. (12 marks)

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