Legal Aspects of Shipping – November 2019 Past Paper – KNEC Diploma

Past Examination Question Paper – KNEC

This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses:

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THE KENYA NATIONAL EXAMINATIONS COUNCIL

DIPLOMA IN INTERNATIONAL FREIGHT MANAGEMENT

MODULE III

LEGAL ASPECTS OF SHIPPING

November 2019

1. (a) Outline six maxims of equity relied upon by courts in resolving disputes. (12 marks)

(b) Paul, an infant, borrowed money from Ben. Paul failed to repay the loan as agreed. Ben is aggrieved and intends to sue Paul in a court of law. Explain the legal principles applicable in this case. (8 marks)

2. (a) In relation to the law of agency, outline six instances when an agent shall be held personally liable to third parties. (12 marks)
(b) Explain four duties of a bailee as outlined in the Law of Bailment. (8 marks)

3. (a) Explain four remedies available to an aggrieved party in respect to trespass to land. (8 marks)
(b) Outline the criteria for fixing the reward for salvage of a vessel, under the Lloyd’s open forms contract. (12 marks)

4. (a) Under the international conventions affecting ship arrest, outline six instances where the courts of the country in which the arrest for a ship is made, shall have jurisdiction to determine the case. (12 marks)
(b) Bills of lading may take various forms. Explain four such forms. (8 marks)

5. (a) Simon sold some goods to Kadogo and shipment was to be made by 31st January. However, the shipper shipped the goods on 4th February and forged the date on the bill of lading to show shipment in January. Kadogo received the documents, and unaware of the forgery, made payment. Before the goods arrived, Kadogo discovered the forgery but still went ahead and took delivery of the goods upon their arrival. However, the. market price had fallen within the period that shipment delayed and Kadogo suffered loss. Kadogo is aggrieved and intends to sue Simon for the loss he has suffered. Explain the legal principles applicable in this case. (10 marks)
(b) Under the rules governing collision in ships, explain the damages which are recoverable by one party from the party at fault. (10 marks)

6. (a) Under the principle of contribution, an insurer is only entitled to contribution if certain conditions exist. Highlight five such conditions. (10 marks)
(b) Outline five circumstances under which the provisions of Humburg rules are applicable to contracts of carriage by sea, between two different states. (10 marks)

7. (a) Outline five reasons that may make parties to a commercial dispute prefer arbitration to regular courts to resolve their dispute. (10 marks)
(b) Certain claims against the owner, demise, charterer, manager or operator of a vessel shall be secured by a maritime lien on the vessel. Outline five such claims. (10 marks)

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