Review questions
1.
Who is an agent?
2.
Discuss any two duties of an agent.
3
XYZ Limited was incorporated as a Company on 1 June 2016. Prior to its incorporation, the
shareholders got a loan of MK30, 000, 000.00 from HDF Bank Limited on 20 April 2016 on behalf of
the Company to be incorporated for purposes of meeting the incorporation expenses and also to meet
other pre-incorporation costs. The transaction was adopted by the Company on 10 June 2016.
However, the Company in now is arrears and HDF Bank Limited has brought an action against the
Company claiming the whole outstanding amount.
The Managing Director of the Company has asked for your thoughts on the matter. In his view, the
Company is not liable to HDF Bank Limited for the loan because the Company was not in existence at
the time when the loan was obtained by the shareholders.
Carefully consider these facts and advise the Managing Director on the liability of the Company.
4.
Define a contract of sale of goods?
5.
Discuss any two rules for ascertaining the intention of the parties regarding the time when the property
passes from the seller to the buyer.
6.
Discuss any two instances where the unpaid seller may lose his right to the remedy of lien over the
goods.
7.
Discuss any two exceptions to the nemo dat rule.
8.
Discuss any two remedies for the buyer under the Sale of Goods Act.
9.
Munganya sold his Mercedes Benz to Mzanga at MK19, 000, 000.00. Mzanga took the vehicle but
promised to pay after five days. While driving it and before effecting payment, the vehicle was
involved in a serious accident and got damaged beyond economic repair. Mzanga is now refusing to
pay for the vehicle arguing that the risk of accidental loss was still with Munganya because he had not
paid for it. Munganya who is an uneducated rich man is seriously worried about this transaction. He
has come to you for advice. Please advise him on a) whether he can sue Mzanga for the price and b)
whether Mzanga has a defence that the risk was on Munganya as alleged or at all.
10.
Who is a consumer?
11.
Discuss any three rights of a consumer.
12.
Discuss any two obligations of the supplier or trader as provided for under the Consumer Protection
Act.
13.
Discuss any two safeguards that are provided by the Act in relation to standard form contracts.
14
Write short notes on the following:
i)
agent’s duty of obedience.
ii)
Ostensible authority.
iii)
sale by sample.
iv)
Disposition by seller in possession.
v)
prohibition against pyramid selling.
15.
Discuss any one use of bills of exchange
16.
Who is a ‘holder’ under the Bills of Exchange Act?
17.
State one duty of a holder of a bill of exchange
18
Write short notes on:
i)
Dishonour by non-acceptance
ii)
Dishonour by non-payment
17
How is a bill of exchange different from a promissory note?
18.
Write short notes on
i)
Cheques
ii)
Drawer
iii)
Drawee
19.
What amounts to a negotiable bill of exchange
20.
What is the difference between an agent for brokers and an insurance agent?
21.
Who is an insurance broker within the meaning of the Insurance Act?
22.
Write short notes on
a)
Policy
b)
Reinsurer
c)
Life Insurance
d)
General Insurance
End of questions
Goodluck