KNEC| KASNEB| KISM| Study notes and Revision materials for schools in Kenya. KNEC certificate courses, Diplomas, Higher Diplomas, KISM courses cpsp-k and aps-k, KASNEB cpa, atd, cs, cifa, ccp, dcm, cict and cict, Ksce and Kcpe
• This problem is based on the obligations of the customer towards the banker. • The customer is bound to exercise reasonable care when drawing cheques to avoid alteration. • In this case Speed Company Ltd acted negligently in drawing the cheque and this facilitated the change by Hesabu. • My advise to the bank
• If a person who is of unsound mind enters into a contract such a contract is voidable at his option by establishing that o He was too insane to understand the nature or effects of his acts. o The other party was aware of his mental condition • By proving these facts the party
• Variation of the terms of the contract without the guarantors knowledge. • If the guarantor extends the duration within which the principal debtor must fulfil his obligation. • If it is apparent that the guarantee was obtained by concealment of material circumstances. • If evidence shows that the guarantee was obtained by fraud. •
• Duty to the court: as an officer of the court, an advocate is bound to assist the court in the administration of justice by urging the facts and the law correctly. • Duty of client: he owes his clients, a legal duty of care to represent them in the best manner possible. He is
• For a court of law to consider the effect of an exemption clause in a contract, it was in the first instance be satisfied that the clause was an integral part of the contract. The party affected by the clause must have been aware of its existence. • An exemption clause may be made
Vicarious liability is the liability of one person for the torts committed by another person by virtue of their relationship. The concept of vicarious liability is founded on the fact that employees are usually people of meager means and it is therefore only fair that the injured person is allowed to recover damages from the
Undischarged bankrupts are persons who have been declared bankrupt of by a court of competent jurisdiction. Their contractual capacity is restricted by the provisions of the Bankruptcy Act
The Judicature Act Cap 8 identifies eight sources of law of Kenya: • Constitution • Legislation (statute law) “All other written laws” • Delegated legislation • Statutes of General Application • Common law • Equity law • Case law or judge – made law • African customary law • The constitution and the Kadhis court
This is a source of Law of Kenya It is based on the Muslim Holy book the Quran and the teachings of prophetMohammed contained in his sayings known as “Hadith.” It is a subsidiary source of law of Kenya recognized by the Constitution and the Kadhi‟s Court Act. It is only applicable in the settlement
• Common mistake is said to exist when both parties make the same mistake. • Each party knows the others intention but both are unaware of an underlying fundamental fact. • This is a mistake as to the existence or ownership of the subject matter. • Common mistake renders a contract void in two circumstances: