Business Law 2015 July Knec Past Paper


1. (a) Explain six points of distinction between a sub-agent and a substituted agent. (12 marks)
(b) The relationship of agency is based upon a contract. Explain four essentials of a contract of agency. (8 marks)
2. (a) In relation to the Law of Contract, outline four points of distinction between liquidated damages and a penalty. (8 marks)
(b) Explain three circumstances under which the remedy of specific performance may be granted by a court. (6 marks)
(c) For the doctrine of frustration of a contract to apply, three conditions must be satisfied.
Outline these conditions. (6 marks)
3. In relation to the law governing employment:
(a) Explain deductions which an employer may lawfully effect from an employee’s salary. (12 marks)
(b) Outline four reasons which may lead to summary dismissal of an employee. (8 marks)
4. (a) Explain the shortcomings of delegated legislation. (10 marks)
(b) Outline the advantages of administration tribunals. (10 marks)
5. (a) Explain five functions of the Constitution of Kenya. (10 marks)
(b) In relation to the arms of government of Kenya, explain the doctrine of separation of powers. (10 marks)
6. In relation to the law of Torts:
(a) Explain circumstances when the defence of absolute privilege may be pleaded. (12 marks)
(b) Outline four circumstances when slander is actionable per se. (8 marks)
7. (a) In relation to the law of succession, outline the characteristics of a valid will. (10 marks)
(b) In relation to the law’ of succession, outline five particulars to be set out in an application for letters of administration.

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