THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN SUPPLY CHAIN MANAGEMENT
DIPLOMA IN BUSINESS MANAGEMENT
DIPLOMA IN CO-OPERATIVE MANAGEMENT
DIPLOMA IN INVESTMENT MANAGEMENT
MODULE I
BUSINESS LAW
1. Outline four features of each of the following types of contracts:
(I) Simple contracts;
(II) Contract of record.
State four contracts that must be supported by written evidence.
(8 marks)
(4 marks)
(b) Explain the following classes of agents:
(D Factor;
(*i) Delcredere agent;
(iii) Universal agent;
(iv) Special agent. (8 marks)
2. (a)
(i) Explain each of the following defences against tort:
(T) Private defence;
(II) Inevitable accident;
(III) Statutory authority.
(6 marks)
(ii) Jared was standing next to a shop at 10.00 p.m., when he was arrested by a policeman on suspicion of being a thief. Outline a suitable line of defence that
Jared may use in a court of law. (4 marks)
(b) (i) Outline two distinctions between statute law and common law. (4 marks)
(ii) Outline three factors that have encouraged the application of judicial precedents in Kenya, in determining court cases. (6 marks)
3. (a) (i) Highlight three ways of safeguarding the validity of a written will.
(6 marks)
(ii) Explain three ways by which a testator may revoke his will. (6 marks)
(b) Outline five functions of the President as stipulated in the Constitution of Kenya.
(8 marks)
4. (a) (i) Distinguish between:
(I) real property and personal property;
(II) public property and private property.
(8 marks)
(ii) Explain the process of acquiring property through the following ways;
(I) Operation of law;
(11′) Accession.
(4 marks)
(b) Explain five reasons why the High Court of Kenya may order an inferior court to present to it the records of proceedings. (8 marks)
5. (a) Describe the operation of the law of tort with regard to diplomats. (10 marks)
(b) Highlight five responsibilities of an employer under a contract of employment. (10 marks)
6. (a) Explain five characteristics of a valid offer. (10 marks)
(b) Explain five differences between a bill of exchange and a cheque. (10 marks)
7. (a) (*) Explain four rules that govern the validity of gifts in contemplation of death.
(8 marks)
(ii) Laswa contemplated death following an illness and therefore decided to leave his property as a gift to two relatives just in case. State the effect if;
(I) Laswa later committed suicide;
(II) Laswa finally recovered from the illness. (4 marks)
(b) (i) Outline the remedies available in a civil wrong. (6 marks)
(ii) State two kinds of civil wrongs.
