UNIVERSITY EXAMINATIONS: 2021/2022
EXAMINATION FOR THE DEGREE BACHELOR OF BUSINESS
INFORMATION TECHNOLOGY
BUSS 209: BUSINESS LAW
FULLTIME/PART TIME
DATE: DECEMBER 2021 TIME: 2 HOURS
INSTRUCTIONS:
• Answer question ONE (compulsory) and any other TWO questions
QUESTION ONE
a) Expound and explain the rule established in Fisher vs Bell as regards contracts.
(10 Marks)
b) Explain 5 remedies available under contract Act of Kenya where breach of contract has
occurred. (10 Marks)
QUESTION TWO
a) Explain the rule expounded by the House of Lords in Donoghue vs Stevenson as regards
torts. ( 10 Marks)
b) Write explanatory notes on each of the following:
(i) The rule in Rylands v Fletcher (2 Marks)
(ii) Volenti non fit injuria (3 Marks)
QUESTION THREE
a) List and explain the three main parties in agency law. (3 Marks)
b) ‘In agency law, the terms ‘authority’ and ‘power’ are sometimes used synonymously
particularly with regard to the scope of the agency relationship. Authority is the oral or
written permission conferred upon a person by another to do a particular thing. It is a
factual concept and may create power. Power on the other hand is the ability of the agent
to affect the legal position of the principal in relation 3rd parties. It is a legal concept and
exists independent of authority.’ Anonymous.
Based on the above statement
i. Describe the three types of authority that an agent has (6 Marks)
ii. Discuss the legal duties/obligations of the Principal and Agent (6 Marks)
QUESTION FOUR
a) Discuss the two main types of agent. (4 Marks)
b) Outline the requirements for a contract to be considered valid in Kenya. ( 6 Marks)
c) Outline and briefly explain the steps a Bill goes through before it becomes an Act of
Parliament. (5 Marks)
