|SALE OF GOODS,AGENCY AND NEGOTIABLE INSTRUMENTS
|Course: Bachelor of Laws (LLB)
|Institution/Board: Kenyatta University
|Exam Year: 2010
|Answer questiOn ONE and any other TWO questions.
1.Njoya,a rancher at Kambi ya Moto contracts with Tom,a dog-breeder that the latter will sell and supply two pure German shepherd breed dogs for the former’s security at the goat and sheep boma;delivery at Njoya’s ranch.
Upon delivery on the appointed day,Njoya admires and inspects the dogs and tells Tom, “this is exactly what I wanted.Come for your money tomorrow morning.”That same night,Njoya’s goat and sheep boma is invaded by wild wolves,which kill three goats and three sheep.The two dogs not only fail to bark or attack,but rushed into herdsmen’s house in a terrible scare,and in the commotion,bite the herdsman,who a week later developed rabies symptoms.It is then discovered that the dogs had not been vaccinated against rabies,nor were they pure bred German shepherd,but a first generation German shepherd and a local cross-breed of unclear origin.Njoya sues Tom,and the case is before you as the presiding magistrate.How would you dispose of the case? (30 marks)
2.National and International trade would come to a complete standstill if the person who could sell and pass a good title was the owner of the goods.
Using relevant authorities,show how the courts and chapter 31 Laws of Kenya circumvent the stricture of Nemo Dat Quod non Habet. (20 marks)
3.The law of Agency is founded on two theories:the consent theory and the authority theory.Explain and critique these theories. (20 marks)
a)The main characteristics of Negotiable Instruments. (10 marks)
b)The general duties of a holder of a bill of exchange. (10 marks)
5.Write explanatory notes on each of the following terms:
b)Essentials of a valid ratification.
c)Right of stoppage of goods in transitu.
d)Inchoate instruments. (5 marks each)