Month: September 2020

Joshua Kerabu requested Grace Kwambo to sell two laptops on his behalf at a price of not less than Sh.40,000 each. Joshua Kerabu promised to pay Grace Kwambo an agreed commission of 5% on every sale. Grace Kwambo bought one of the laptops and gave Joshua Kerabu Sh.40,000 but did not inform him that she was the buyer. Grace Kwambo sold another laptop to Clemencia Musyi at a price of Sh.50,000 and gave Joshua Kerabu only Sh.40,000. Joshua Kerabu has come to learn about Grace Kwambo’s dealings. Explain the legal principles applicable in the above case and advise Joshua Kerabu on his legal rights.

Principles applicable in Joshua Kerabu and Grace Kwambo’s case An agent has a duty not to allow his interests to conflict with those of the principal He also has a duty not to make any secret profit. Grace Kwambo is Read More …

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Jasmin Mrongo, an accounts clerk at Cautious Company Ltd., prepared a cheque for Peter Kraft’s signature. Peter Kraft was not a duly authorised signatory of Cautious Company Ltd. The amount on the cheque appeared in figures as Sh.5,000 but was not written in words. Peter Kraft signed the cheque and gave it to Jasmin Mrongo who secretly altered the amount to read Sh.95,000 and also wrote “ninety five thousand shillings” in words. Jasmin Mrongo then encashed the cheque at Mzalendo Bank, the company’s bank. Jasmin Mrongo gave Peter Kraft Sh.5,000 and retained Sh.90,000 which she used to purchase a plot. Cautious Company Ltd. has discovered the above facts and intends to sue Mzalendo Bank for negligence. Analyse the legal principles applicable in the above case and advise Cautious Company Ltd.

Legal principles applicable A banker must not pay cheques without a customer’s authority. If such payment is made, the bank will be held liable. The bank failed to notice that the signature on the cheque was not that of a Read More …

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Matende Juma was employed by Marion Kaveza to sell her piece of land situated in Nazarede Town at 10% commission. Norah Muhonja, a prospective buyer promised to pay Matende Juma Sh.50,000 in addition to the purchase price of Sh.500,000 if he agreed to reserve the land for her as she raised the purchase price. Matende Juma reserved the land for Norah Muhonja ignoring Timothy Kyalo, another buyer who offered to buy the same land for Sh.600,000 all of which he wanted paid directly to Marion Kaveza, the land owner. After three months, Norah Muhonja paid Sh.500,000 for the land and gave Matende Juma the Sh.50,000 she had promised. Marion Kaveza eventually transferred the land to Norah Muhonja but later discovered that Matende Juma had received Sh.50.000 from Norah Muhonja and that Timothy Kyalo had offered to pay a higher price for the land. Analyse the legal principles applicable in the above case and advise Marion Kaveza who intends to sue Matende Juma.

Legal principles applicable in the given case: An agent must always perform his duties in good faith while working for the principal. He must work in the best interest of the principal. He must execute his duties with reasonable skill Read More …

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An agent will usually act within his authority, but if the relationship with his principal is well established he may occasionally act outside the authority if he feels the principal will subsequently ratify the agent‟s action. Discuss the effects of subsequent

Effects of subsequent ratification of unauthorized act by the principal The principal becomes liable The ratification is retrospective and takes effect from the time the agent acted. The transaction becomes lawful (authorized). The agent is exempted from liability to 3rd Read More …

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