W1-2-60-1-6
JOMO KENYATTA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
UNIVERSITY EXAMINATIONS 2013/2014
YEAR 2 SEMESTER II EXAMINATION FOR THE DEGREE OF BACHELOR OF LAWS
LSC 2210: SALE OF GOODS AND AGENCY
DATE: December 2013 TIME: 2 HOURS
QUESTION ONE: COMPULSORY
Mr. Dayo Anwari, by a plaint dated the 19th August, 2012, filed an action in the lower court to recover Ksh.16,000/- for goods sold and delivered to JKUAT University in April 2012. The Defendant denied the claim on the grounds that the goods delivered were of inferior quality, and were delivered late, making them useless for the purpose for which they were ordered.
However, the Defendant did not return the goods, but claims that it rejected the goods by telephone. When the plaintiff failed to collect them, the Defendant alleges that it destroyed them. The magistrate hearing the case, nevertheless, went ahead and made a finding of fact which, indeed, was her duty to do. She delivered her judgment as follows:
“Goods were supplied and accepted. Defendant did not repudiate the contract by returning the goods. To date, it still keeps the same which it says it destroyed. I conclude that whether the goods were of low quality or not the defendant accepted the same and still keeps them. It should make good for the same”
The Defendant is not satisfied with this finding and wants to appeal. Drawing from your knowledge on the rules on delivery and acceptance of goods in a sale of goods contract, advice the Defendant. (30marks)
QUESTION TWO
a) Distinguish between a sale and a bailment (5marks)
b) Tuskys Supermarket recently concluded a promotion in which they promised to give free geometrical sets to parents who purchased school items worth Ksh10,000 and above from any of its outlets. You client is one of the customers who bought the goods, but did not receive the set as promised.
Advise her whether the set constituted part of the contract of sale of goods to enable her take the necessary action. (10marks)
c) Distinguish between a sale and an agreement to sell (5marks)
QUESTION THREE
a) Distinguish between a “condition” and a “warranty’’. (5marks)
b) Identify and discuss two remedies of an unpaid seller and those of a buyer for breach of contract where:
i. The property in the goods had passed to the buyer. (8marks)
ii. Where the property had not passed to the buyer (7marks)
QUESTION FOUR
a) Discuss three methods through which an Agency relationship may be created. (15marks)
b) Identify and describe three duties of the agent, and two duties of the principal in an agency relationship (5marks)
QUESTION FIVE
a) Explain three ways by which an agency relationship may be terminated. (12marks)
b) Explain four rights of an agent (8marks)
