Legal Issues in Project Management – November 2019 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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November  2019

1. (a) Explain six advantages of using tribunals over courts of law in solving disputes. (12 marks)
(b) Outline four ways in which a trader may commit the offence of misleading price indications. (8 marks)

2. (a) Explain four conditions implied in a contract of sale of goods. (8 marks)
(b) Outline six particulars that should be submitted to the Registrar when registering a Limited Partnership. (12 marks)

3. (a) Explain five ways in which an agency may be terminated by operations of law. (10 marks)
(b) Jean bought a set of leather seats from Amaza limited under hire purchase agreement at a cost of Ksh 120,000 payable in twelve months. After paying 8 instalments, Jean travelled out of the country on five-year employment contract. She gave the seats to Paul her fiancée. Paul was also left in Jean’s house where the two lived. Jean’s brothers later threw Paul out of their sister’s house and took away the seats. Paul claimed that he had contributed more than 70% of the instalments already paid but Jean’s brothers said that they did not recognise him. Paul is aggrieved and intends to take legal action against Jean’s brothers.
Explain the legal principles applicable in this case. (10 marks)

4. (a) The High Court of Kenya has ordered that Lexis Ltd be wound up. Explain the effects of such an order. (12 marks)
(b) In relation to negotiable instruments, explain four forms of qualified acceptance. (8 marks)

5. (a) John borrowed a loan from Zebu Bank limited. He gave his logbook as security for the loan but since the value of his car was low, John asked his friend Salome to become his surety. Salome agreed and gave her logbook as additional security.
John later borrowed additional loan from the bank without informing Salome. The bank consolidated all the amounts loaned and entered into a fresh agreement with John for payment of the total amount advanced. On learning about the new agreement, Salome asked the bank to return her logbook claiming that the variations without her consent had discharged her as a surety. The bank declined to return the logbook. Salome is aggrieved and intends to take legal action.

Explain the legal principles applicable to this case. (8 marks)

(b) Explain six classes of persons who are deemed to have an insurable interest in a subject matter. (12 marks)

6. (a) Explain the conditions that should be met for a bankruptcy petition to be successful. (12 marks)
(b) Explain the remedies available to a claimant in an action for intellectual property infringement. (8 marks)

7. (a) Explain five ways in which a contract of bailment may be discharged. (10 marks)
(b) Outline the circumstances under which a court of law may decline to grant the remedy of specific performance for breach of contract. (10 marks)

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