Which of the following statements about bill of exchange and promissory note are not true?

In a bill of exchange, there are three parties, whereas, in the case of a promissory note the number of parties is two(2).
The liability of the maker of the promissory note secondary and conditional,whereas, the liability of the maker of the bill of exchange is primary and absolute.
Bill of Exchange is a financial instrument showing the money owed by the buyer towards the seller, whereas a promissory note is a written document in which the debtor promises the creditor that the amount due will be paid at a future specified date.
In the case of a promissory note, the drawer and payee can be the same person which is not possible in case of a bill of exchange
A Bill of Exchange can be made in copies, but Promissory Note cannot be made in sets.
The notice of dishonor of a promissory note must be given to all the parties concerned, however, in the case of a bill of exchange, such notice need not be given to the maker.

Cheque crossing conveys that the underlying amount is to be paid to the banker and not over the counter. In ________, the cheque bears the name of the bank within two transverse parallel lines that are used to cross the cheque.

General cheque crossing
Account payee’s crossing
Not negotiable crossing
Special cheque crossing

TRUE OR FALSE: A person can become a holder in due course, before or after the maturity of the negotiable instrument, whereas, a person can become a holde, only before the maturity of the negotiable instrument.


A (a)________refers to the payee of the negotiable instrument, who is in possession of it and is entitled to receive or recover the amount due on the instrument from the parties thereto, whereas, a (b)___________ implies a person who obtains the instrument bonafide for consideration before maturity, without any knowledge of defect in the title of the person transferring the instrument.

a). Holder, (b). Holder in due course

In reference to bills of exchange, ________endorsement refers to the writing of the name of a person who holds a negotiable instrument on the back of the document without specifically designating to whom the paper is to be paid, which transfers the rights that the signer had in the instrument to the person who presents it for payment.


TRUE or FALSE: A drawee has no liability regarding any bill addressed to him for acceptance or payment until he accepts the bill by writing the word 'accepted' on the bill and signing his/her name below to complete the acceptance.


TRUE or FALSE: If a cheque is altered and the drawer later authorizes the alteration (usually by initialing it), the effect is that the drawer is bound by the cheque as altered, and other parties are protected by section 64, unless they, too, have assented to the alteration.


Mark drew a cheque for USD 4,400/= in favor of Michael, who fraudulently altered the amount to USD 440,000/=, and sold (negotiated) it to Thomas who negotiated it to Simon. Here, Simon can enforce it against:

Mark and Michael
Thomas and Michael
Mark and Thomas
None of the above

Where alteration to a bill is material, it becomes______ void except as against the party who was privy to the alteration and except in the case of an alteration that is not apparent.


Sans recours (without recourse) means that:

That the buyer of a promissory note or other negotiable instrument assumes the risk of default.
That the seller of a promissory note or other negotiable instrument assumes the risk of default.
That the endorser of a promissory note or other negotiable instrument assumes the risk of default
A person who signed a promissory note or other negotiable instrument under fundamental mistake assumes the risk of default.

TRUE or FALSE: If a negotiable instrument is dishonored (i.e. not paid when due), a holder for value can sue any person who signed the bill before it came into his possession


Bills of lading, Post Office orders, money orders, registered share certificates, IOUs and receipts, dock warrants, delivery orders, etc. are examples of:

Non-negotiable instruments

Outline five(5) requirements of negotiability.

i. It must be signed by the maker or drawer.ii. It must be payable to order or bearer unless it is a checkiii. It must be an unconditional promise or order to pay.iv. It must be payable on demand or at a definite time.v. It must be in It must be for a fixed amount of money.

In relation to negotiable instruments, drawee in case of need refers to:

The bill holder who endorses a bill of exchange to another person.
The person who signs the bill of exchange as a mark of acceptance.
The person who accepts a bill of exchange in case the original drawee does not accepts the bill.
The person who accepts the bill in case an endorsee does not accept the bill.

Highlight four(4) distinctions between a bill of exchange and a cheque.

4 distinctions between a bill of exchange and a cheque.

Define negotiable instruments and provide three (3) examples.

negotiable instruments and 3 examples.

Outline two (2) requirements for an acceptance of honor supra protest to be valid.

i. It must be written and indicate that it is an acceptance for honor.ii. It must be signed by the acceptor for honor.

I reference to agency law,_________ agency refers to the relationship between the agent and the seller wherein the seller acts as the principal and the agent not only acts as the broker of the principal but at the same time he also undertakes the guarantee of the credit which is extended to the buyer.

Del Credere

In reference to agency law,__________authority occurs when the agent exceeds the scope of their express or apparent authority, but it can be implied by a third party that the agent has that authority.

Inherent authority

If a client makes the agent sign a contract specifying what the agent can and cannot do, this is an example of __________authority.

Actual express

The ___________ stipulates that when a contract is required by law to be in writing, the authority of an agent to enter into such a contract on behalf of the principal must also be in writing.

Equal dignities rule

TRUE or FALSE: A principal might be estoppel from revoking an agent’s authority if the principal limited the agent’s authority but fails to inform third parties who deal with him/her of the agent’s limited authority.


TRUE or FALSE: Where an agent himself /herself has an interest in the subject-matter of the contract, the agent is personally liable to the extent of his/her interest in the subject-matter.


Outline five(5) circumstances under which an agent might become personally liable to third parties.

Circumstances under which a gent is personally liable

The concept of agency by ________arises where one person acts in such a way that the other believes that a third person is authorized to act on his behalf and enters into a transaction with the third person.

Express agreement
Implied agreement

Define the following terms:
i. Fiduciary
ii. Agency by necessity

i. Fiduciary ii. Agency by necessity

Moses entered into a contract with Elijah as her agent. Moses wants to know the duties of an agent to the principal. Outline four(4) duties of the agent(Elijah) to the principal( Moses).

4 Duties of the agent(Elijah) to the principal( Moses).

Outline three(3) rules governing the agency by ratification.

i. An act will be regarded as a ratification only if the principal had a free choice of whether to do it or not.ii. The person ratifying must have contractual capacity.iii. The agent must purport (intend to seem) to act as an agent.

An agency by ratification is also known as_________ agency.

Ex post facto

TRUE or FALSE: Ratification renders the ratifier (the principal) bound to the contract as if he had expressly authorized the person to transact the business on his behalf.


An agency is created _______

When two or more parties to manage and operate a business and share its profit.
When a commercial enterprise is undertaken jointly by two or more parties which otherwise retain their distinct identities.
When a person delegates his authority to another person to act under his or her control and on his or her behalf or appoints them to do some specific job or a number of them in specified areas of work.
When organizations come together to promote the business interests of their members.

Highlight three(3) conditions that must be satisfied before the principle of contribution can be applied

i. The property must be insured with two or more insurance companies.ii. The policy must be in respect of the same insured person.iii. The policy must be in respect of the same risk and the same subject matter.

Which of the following statements is/are true about insurable interest in life assurance?

A child has no insurable interest in the life of his parents &vise versa in common law.
A master has an insurance interest in the life of his servant to the extent of the value of the services agrees to be rendered.
A servant has an insurable interest in the life of his master to the extent of his remuneration for the agreed period of service.
All of the above.

TRUE or FALSE: One can purchase a life insurance policy without the existence of an insurable interest.


In insurance industry, an________ contract requires the highest standard of good faith during disclosure of all material facts that could influence the decision of the other party

Uberrimae fides

__________refers to a document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.

Certificate of insurance
Insurance policy document
Cover notes
Insurance proposal form

TRUE or FALSE: Life assurance pays out a tax-free sum to whoever you choose when you die, whereas, Life insurance pays out a tax-free sum to whoever you choose if you die during the terms of the policy.


Life (i)_______is designed to cover the policyholder for a specific term, while life (ii)______usually covers the policyholder for their entire life.

i. Insurance. ii. Assurance

________arises where the same party is insured with two or more insurers in respect of the same interest on the same subject matter against the same risk and for the same period of time.

Double Insurance

A creditor has an insurable interest in the life of a:


TRUE or FALSE: A spouse who relies on their partner for finances has an insurable interest in the life of the partner.


Outline three(3) types of risks that are insurable.

i. Liability risk.ii. Personal risk.iii. Property risk.

An insurable interest can be defined as:

A sudden and unexpected event that results in damage to an asset and the resultant damage from failure of the asset that can be claimed under and insurance policy.
A type of investment that protects anything subject to a financial loss or the level of hardship someone would experience as a result of the loss of someone or something.
A risk that conforms to the norms and specifications of the insurance policy in such a way that the criterion for insurance is fulfilled.
A type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder.

Insurance policies have five main parties; The declaration page, Definitions, Insuring agreements, Exclusions & limitations, and Conditions. Outline five(5) contents covered under the declaration page.

i. The type or name of the coverage being provided.ii. Policy details like the policy period, number, and premium.iii. Names of the people covered and assets (if applicable).iv. The amount limits on coverages and your corresponding deductibles.v. A list of endorsements included in the policy or their total Discounts applied to the policy.

TRUE or FALSE: The principle of contribution only applies to those insurance contracts which are contracts of indemnity.


Under the principle of _______ ,the total payment for actual loss is proportionally divided among all insurance companies.


The insurance principle of subrogation:

Enables the insurer to ensure the subject matter with some other insurer.
Enables the insurer to provide financial compensation to the insured in the event of financial loss.
Ensures both parties disclose all material facts to each other.
Enables the insurer to claim the amount paid to the insured from a third party responsible for the loss.

The ______ is the Government agency established under the Insurance Act, Cap.487 with a mandate to regulate, supervise and develop insurance sector in Kenya.

Insurance Regulatory Authority (IRA)

Elija, a shareholder of Noah Limited lost his share certificate. He applied for a duplicate one and the company agreed, but on the condition that Elija compensate for the loss or damage to the company if a third person brings the original certificate. This is an example of :


Which of the following statements about the contract of guarantee and a contract of indemnity is/are not true?

In the contract of indemnity, one party makes a promise to the other that he will compensate for any loss occurred to the other party because of the act of the promisor or any other person, whereas in the contract of guarantee, one party makes a promise to the other party that he will perform the obligation or pay for the liability, in the case of default by a third party.
In indemnity, there are two parties, indemnifier and indemnified but in the contract of guarantee, there are three parties i.e. debtor, creditor, and surety.
The liability of the indemnifier in the contract of indemnity is secondary whereas, in guarantee liability of the surety is primary because the secondary liability is of the debtor.
The purpose of the contract of indemnity is to save the other party from suffering loss. However, in the case of a contract of guarantee, the aim is to assure the creditor that either the contract will be performed, or liability will be discharged.
In the contract of guarantee, the liability arises when the contingency occurs while in the contract of identity, the liability already exists.
Contract of guarantee is covered under the law of contract Cap 23, laws of Kenya, whereas, contract of indemnity is covered under the law of contract Cap 44, laws of Kenya.

TRUE or FALSE: An insurance contract is an example of a guarantee


. Outline five(5) rights that a guarantor has against a creditor.

5 rights that a guarantor has against a creditor.

TRUE or FALSE: A continuing guarantee applies to a series of separable, distinct transactions. Therefore, a guarantee given for an entire consideration can be termed as a continuing guarantee


An (i)______guarantee refers to a guarantee that is given in respect of a single debt or specific transaction and is to come to an end when the guaranteed debt is paid or the promise is duly performed, whereas a guarantee which extends to a series of transactions is called an (ii)__________guarantee.

(i). Specific, (ii).Continuing

Hassan advanced a loan of USD 50,000 to Halima. Juma, Halima's boss promised that in case Halima failed to repay the loan, he would repay the same. In this case of a contract of guarantee, Hassan is the (i)______, Halima is the (ii) _______, and Juma is the (iii). _______.

(i).Creditor,(ii).Principal Debtor,(iii).Surety

Outline three(3) characteristics of a contract of guarantee.

i. The creditor should disclose to the surety the facts that are likely to affect the surety’s liability.ii. The guarantee should not be obtained by misrepresenting the facts to the surety.iii. It must contain all the essentials of a valid contract.

Which of the following is not a party to a contract of guarantee?

Principal debtor

_______ refers to a contract to perform the promise or discharge the liability of the defaulting party in case he fails to fulfill his promise.

Contract of guarantee

Indemnity can be defined as:

A formal assurance (typically in writing) that certain conditions will be fulfilled, especially that a product will be repaired or replaced if not of a specified quality.
Refund that is paid to business persons in case their products are damaged.
Protection against damage to property that an insurance company promises to offer.
Security or protection against a financial liability occurs in the form of a contractual agreement made between parties in which one party agrees to pay for losses or damages suffered by the other party.

Tabora Limited purchased a tile manufacturing machine on hire purchase from Diamond Limited on January 1, 2020, paying USD 200,000 immediately and agreeing to pay four annual installments of USD 100,000 each on December 31, every year. The cash price of the machine is USD 350,000, and the vendors charge interest @ 5% per annum. Calculate the following:
i. Hire purchase price.
ii. Total interest paid.

i. Hire purchase price. ii. Total interest paid.

In reference to hire purchase agreements, which of the following statements is/are not true?

The payment of the installments is to be done by the buyer i.e., the hirer to the seller over the specified period of time.
Buyer gets the possession and ownership of the goods immediately.
In case of any default of installment payment by the hirer, the vendor has the right to repossess the goods. In that case, the payment already received by the vendor from hirer will be treated as hire charged for the period for which the goods were held.
The ownership of goods is transferred to the buyer upon the payment of deposit
The hire purchase installment amount includes the principal amount as well as the interest charged upon it.
Interest is generally charged on the flat rate.

__________refers to temporary postponement of the payment of an outstanding bill or debt, usually involving repayment by installments.

Credit sale
Conditional sale
Instalment system
Deferred payment

TRUE or FALSE: In a conditional sale agreement, the buyer gives you the option to own the item at the end of the agreement, whereas, in a hire purchase agreement, the buyer automatically owns the item once the finance has been repaid in full.


In reference to contracts, (i) ______ bailment is a type of bailment whereby the bailor transfers possession of property to the bailee on the basis that no compensation is to be paid, whereas under a (ii)______ bailment, the bailer does something for bailee to get something in return and after the accomplishment of the purpose, the bailee will pay him back and will also return his goods too.

(). Gratuitous, (ii). Non-Gratuitous

TRUE or FALSE: A bailor has a duty to compensate the bailee for breach of warranty.


Which of the following is not a duty of a bailee ?

Take proper care of goods and not to make unauthorized use of the goods.
Keep any increase/additions or profits
Keep goods separate and not set adverse title
Return Goods after fulfilment of their purpose

TRUE or FALSE: In a hire purchase, the ownership of the goods is passed to the purchaser as soon as the credit sale agreement is made, even if the purchaser has not made any payment yet, whereas in a credit sale, the ownership of the goods is not passed until the hirer has fully paid the price as agreed upon in the hire purchase agreement.


The following are the obligations of the hirer in a hire purchase agreement. Which is not true?

To pay the hire installment
To take reasonable care of the goods (if the hirer damages the goods by using them in a non-standard way, he or she must continue to pay the installments and if appropriate, recompense the owner for any loss in asset value)
To inform the owner where the goods will be kept.
A hirer can sell the products third party after payment of two thirds of the hire purchase price.

In reference to the hire purchase agreement,(i)________refers to a requirement or event that should be performed before the completion of another action, whereas a (ii)__________is an assurance given by the seller to the buyer about the state of the product, that the prescribed facts are genuine.

(i). Warranty, (ii). Condition
(i). Contract, (ii). Insurance
(i). Condition, (ii). Warranty
(i). Insurance, (ii). Contract

Highlight five (5) implied terms in every hire purchase agreement.

implied 5 terms in every hire purchase agreement.

Which of the following statements about the hire purchase agreement is/are not true?

The owner hires goods to the hirer with an option to purchase the goods when he has made the payment of a certain sum.
The hirer does have an option to return the goods during the period of hire as only the owner can cancel the agreement.
The purchaser who is unable to pay the full price of the asset at one lump sum, gets facilities to acquire an asset and after making the payment of an initial amount called premium, the purchaser pays the balance consideration money in installments.
The hirer may elect to purchase the goods and when he does so, after he fulfills all the conditions prescribed in the agreement, the title to the goods will pass to him.
The property in the goods passes to the hirer on payment of deposit.
It is a form of bailment where the hirer is given the option t to purchase the goods on certain conditions.
The hirer has an option to return the goods during the period of hire
The hirer does not have the right to terminate the agreement for hire and is bound to pay the value of the goods.

TRUE or FALSE: When the hirer is given time to exercise the option to purchase the goods within a stated period and he does not exercise the option within the said period, the agreement comes ends.


Outline three(3) ways in which a hirer in a hire purchase contract might terminate a hire purchase agreement under CAP.507.

i. By performance on the exercise of the option to purchase the goods by the hirer.ii. By return of the goods by the hirer, notice of termination by the owner on account of the hirer\'s breach of conditions, or notice of termination by the hirer.iii. When one party to an agreement releases the other party from the performance of the obligations under the agreement, the agreement comes to an end.

1he deal in which one party can use the asset of the other party for the payment of equal monthly installments is known as (i)__________, whereas an agreement where one party buys the asset and allows the other party to use it by paying consideration over a specified period is known (ii)_________.

i. Hire Purchase, ii. Leasing

Ex-works contracts can be defined as:

A shipping arrangement in that requires a seller to deliver goods to a buyer at an agreed port of arrival and the seller assumes all transport costs.
An agreement under which the purchaser pays the shipping cost from the factory and is responsible if the goods are damaged while in transit
A shipping arrangement in which a seller makes a product available at a specific location, but the buyer has to pay the transport costs.
An agreement whereby the seller must arrange for goods to be delivered to a designated port and next to a specific vessel for easier transfer.

Highlight three(3) cases under which transit ends according to the sale of goods law.

3 cases under which transit ends according to the sale of goods law.

________refer to a stipulation collateral to main purpose of the contract and the breach of which gives rise to a right to claim for damages but not to a right to reject goods and treat the contract as repudiated

Terms of contract

TRUE or FALSE: In reference to a lien as a right of an unpaid seller, the lien is exercisable where the goods have been sold on credit but the terms of credit have expired.


________refers to goods whose existence is dependent on the future uncertain event/ contingent event.

Future goods
Contigent goods
Ascertained goods
Specific goods

Highlight three(3) rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

3 rules for ascertaining the intention of the parties as to the time at which the property in the goods is to pass to the buyer.

Outline three(3) conditions where a contract of sale of goods is/are void under sale of goods Act.

3 conditions where a contract of sale of goods is/are void under sale of goods Act.

With reference to the sale of goods contract, highlight six(6) differences between a sale and an agreement to sale.

6 differences between a sale and an agreement to sale

Under _________ contracts, the seller has to deliver the goods to the buyer at the port of destination, but the property in the goods does not pass until actual delivery, and the goods are at the seller's risk during the voyage

Free on board (FOB).
Free alongside ship (FAS).
Cost, Insurance, and Freight (CIF).

TRUE or FALSE: Where there is a contract for the sale of unascertained goods, no property in the goods is transferred to the buyer unless and until the goods are ascertained.


Which of the following statements is not true about sale of goods by auction?

If the seller makes use of pretended bidding to raise the price, the sale is voidable at the option of the seller.
If the goods are put up for sale in an auction in lots, each lot is deemed to be a subject of a separate contract of sale.
A right to sell may be reserved expressly by the seller. In such a case, the seller or any one person on his behalf may bid at the auction
When the auctioneer announces its completion by the fall of the hammer or in some other customary manner, the sale is considered complete. Until such an announcement, any bidder may revoke his bid.

TRUE or FALSE: In an auction, if the reserve price is not met, the seller can sell the item to the highest bidder.


Highlight three(3) remedies for an unpaid seller.

3 remedies for an unpaid seller

Fahari sold some goods to Salome for USD 20,000 and received a cheque. On presentation, the cheque was dishonored by the bank. Salome is an:

Unpaid seller

In a sale of goods, “quid pro quo” describes:

An agreement between two or more parties in which there is a reciprocal exchange of goods or services.

Contract of sale of goods can be defined as:

A legal contract that outlines the terms of trade between parties.
A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration
An agreement where the buyer makes a down payment and pays the balance plus interest in installments.
An agreement memorializes what the donor expects with respect to their gift and what the organization receiving the gift commits to providing.

In contract law,_______ means there has been a meeting of the minds of all parties involved and everyone involved has accepted the offered contractual obligations of each party.

Consensus ad idem

(i) ________privity can be brought up if benefits in a contract are given to another party that is not a party to the contract, whereas,(ii) ________privity may be raised when another contract is made arising from one of the parties to another contract.


TRUE or  FALSE: Any contract with privity but without consideration is valid.


TRUE or FALSE: The principle of privity of contract helps to protect third parties to a contract from lawsuits arising from that contract.


The doctrine of _______of contract prevents a person who is not a party to a contract from enforcing a term of that contract, even where the contract was made for the purpose of conferring a benefit on the third party.


What are the three(3) things that are required for a consideration to uphold validity?

i. The abstinence or act should be done at the desire of the promisor.ii. The act should be done by the promise or any other person.iii. The act should be either already executed or be in the process of being done or should be executory (i.e. it should be promised to be done).

TRUE or FALSE: Without consideration, a promise does not have any legal obligations.


The phrase (i) .______ means let the buyer beware, whereas(ii). ________ means seller beware.

(i).Caveat emptor,(ii). Caveat venditor

Any legal interest in the premises that is not terminable at the will of the landlord or at the time the tenant is entitled to take possession is referred to as:

Paramount title

A contract is one in which the parties have performed their duties under the contract is referred to as (i)_________, whereas a contract is one in which the parties have not yet performed their obligations under the agreement is referred to as (ii)_______.

(i). Executory, (ii). Executed
(i). Voidable, (ii). Void
(i). Executed, (ii). Executory
(i). Void, (ii). Voidable

Highlight six(6) differences between conditions and warranties.

6 differences between conditions and warranties

TRUE or FALSE: A leasing agreement is an example of an implied contract, whereas a sale by fall of the hammer in an auction is a good example of an express contract.


An (i)______contract refers to a contract where the proposal and acceptance, leading to the contract, is expressed non-verbally ( i.e. through other means), whereas an (ii)________ contract is one in which the proposal and acceptance, that results in an agreement, enforceable by law, is expressed verbally.


TRUE or  FALSE: A promise that has been made as a result of past consideration cannot be enforced in a court of law. However, a promise to pay a debt that was eliminated by bankruptcy is enforceable.


Highlight five(5) circumstances that might result in a contract being frustrated.

i. The subject matter of the contract is destroyed.ii. There is an excessive delay in performance due to unforeseen circumstances.iii. A party to the contract dies or is incapacitated.iv. The expected method of performance becomes impossible due to unforeseen circumstances.v. There is a state intervention of a natural There is war or a terrorist attack.

A contract is (i)______when all of the elements essential to forming a legal contract are present, whereas (ii) ________contract can be enforced in a court of law.


TRUE or FALSE: A landlord forcing a tenant to sign a contract forbidding medically necessary companion animals such as seeing eye dog is an example of an unenforceable contract (deemed centrally to public policy)


(i)______ is an untrue defamatory statement that is made in writing, whereas,(ii) ______ is an untrue defamatory statement that is spoken orally.

(i). Libel,(ii). Slander
(i). Defamation,(ii). Insult
(i). Disparagement,(ii). Lies
(i). Slander,(ii). Libel

The_________Act(Cap.34) defines the liability of an occupier of premises for injury to persons or damage caused to goods and resulting from actions or omissions of the occupier in respect of the occupied property.

Occupiers liability

TRUE or FALSE: The maxim of ''volenti non-fit injuria ''will not apply when the act relied upon is done because of the psychological condition that the defendant’s breach of duty had induced.


________ occurs when a person uses or alters a piece of personal property belonging to someone else without the owner's consent.


Which of the following are not all examples of an intentional tort?

Trespass to land, Battery, and False imprisonment
Infliction of emotional distress and Assault.
Deceit, Sloth, and Envy.
Trespass to chattels and Conversion.

The ________rule holds that ,where there has been an escape of a dangerous thing in the course of a non-natural use of land, the occupier of that land is liable for the damage to another caused as a result of the escape, irrespective of fault.

Donongue vs Stevenson (1932)
Ryland vs Flecture (1868)
Bourhill vs Young (1943)
Nettleship vs Weston (1971)

TRUE or FALSE: A person employing an independent contractor might be held liable for the contractor’s torts where the work to be done is statutory in nature.


TRUE or FALSE: If an employee takes a defamatory statement written on a note in an employee's file and shows it to people around the office, the courts may not compensate her/him for the defaming statements as the publication was entirely her/his own doing.


TRUE or FALSE: Libel and slander are forms of defamation.


As a victim of negligence, Luka has been advised he must prove any wrong caused by the negligent behavior or a failure to practice due diligence. Because the duty of care is not executed correctly, outline four (4) essentials that Luka must prove.

i. The defendant owed him the duty of care.ii. The defendant did not provide that duty of care.iii. The lack of care was the legal cause of his injuries.iv. He suffered an injury or some sort of damage.

A home care nurse not providing a patient with food or water for several days is an example of _________negligence.


Mercy’s neighbor, Juma, constantly plays loud music in his house throughout the night. The noise has been interfering with her sleep, but despite asking him to lower the volume. Uma has refused. Mercy wants to sue under the theory of private nuisance. As the plaintiff, outline three (3) issues that Mercy must proof.

i. The defendant (Juma) acted in a way that interfered with her enjoyment and use of her property.ii. The defendant\'s (Juma’s) interference was substantial and unreasonable.iii. She owns the property/house and has the right to use/enjoy living in it.

The tort of private nuisance :

Protects a person from being sued by his/her neighbors
Provides a defense for deliberately causing public nuisance on one’s private property.
Enables neighbors to use each other’s property anytime.
Protects a person\'s right to use and enjoy his or her property.

In the law of tort, one of the defenses available in defamation is privilege. Which of the following is not an example of absolute privilege defense?

An employer’s communications with others as a character reference for current or former employee.
Actions and statements made by legislators during debates and in the course of their legislative work.
Political speech and ads
Communication between spouses.

TRUE or FALSE: An absolute privilege protects the speaker even if the speech is false and malicious, whereas a qualified privilege is no protection against actual malice.


What are the 4D’s of medical malpractice?

Duty-Deviation-Damages-Direct cause
Damage-Dangerous-Defamation-Direct cause
Default judgement-Duty-Deficiency-Duty

Malia was attacked by Suleiman and believing she was in imminent danger, used reasonable force to defend herself. In the process, she broke Suleman's arm and Suleiman sued her. What type of general defense can Malia apply?

Volenti non-fit injuria
Private defense
Statutory authority

Mateso went to do shopping at Maneno supermarket. However, due to the slippery floor at the supermarket, she slipped and fell injuring her limbs. Mateso is aggrieved and seeks compensation from Maneno supermarket.
Mateso believes the supermarket was negligent and should have put a notice warning its customers about the slippery floor. She also believes she can be relieved by the doctrine of res ipsa liquitur, which holds that:


The defendant should have foreseen the accident and taken due care.
The occurrence of any accident is sufficient proof even if the plaintiff was negligent.
If a plaintiff should have foreseen the accident and taken due care
The mere occurrence of some types of accidents is sufficient to imply negligence (the facts speak for themselves)

In reference to general defense in tort, volenti non-fit injuria holds that :

A person who voluntary consents to a particular act cannot also claim that the same act is an intentional tort.
A person who knowingly and voluntary risks danger cannot recover for any resulting injury.
No action can result from an illegal act.
An inevitable accident is a general defense in the law of tort

Highlight six(6) differences between tort and contract.

6 differences between tort and contract.

Tort law is the branch of the law that deals with civil suits, with the exception of disputes involving :

Breach of contracts

A document that outlines in detail the rights and responsibilities of all parties to a business operation is known as :

Partnership deed

Which of the following is not a feature of unincorporated association?

All such association s must have at least two members
It is not a legal entity.
Members of the association cannot be held liable for one another
The members of such an association may change from time to time like any other incorporated corporation
It is a separate legal entity and can therefore act in its own name.
They are general small or informal community organizations.

In relation to the law of persons, ______refers to an association of workers in a particular trade, industry, or company created to secure improvements in pay, benefits, working conditions, or social and political status through collective bargaining

Trade union
Workplae forum
Employer association

TRUE or FALSE: private companies are exempted from holding a statutory meeting while in the case of public companies, the same is mandatory.


In reference to legal persons, human beings are examples of (i).________persons, whereas companies, firms, and institutions are examples of (ii)._________persons.

(i). Natural , (ii).Artificial

TRUE or FALSE: A person can acquire nationality by subjugation or by cession.


In reference to the law of persons, (i)______refers to the legal relationship that exists between the nation and the individual, whereas (ii) _______ denotes the country that a person treats as their permanent home or lives in and has a substantial connection with.

(i). Nationality, (ii). Domicile

TRUE or FALSE: Paying a widow of a deceased partner annuity by way of a portion of the profits made by the business in which the deceased was a partner creates a new partnership with the widow.


Which of the following  are elements that must coexist in order to constitute a partnership?

There must be a contract/agreement.
There must an association of two or more persons
There must be a minimum of two members and a maximum of 200 members
The persons must agree to carry on business
The liability of the partners must be limited.
There must be sharing of profits
The business must be carried out by all or any of them acting for all.
They must have a minimum paid -up capital of kshs 100,000.

The ability to have legal rights and duties (e.g. sue & be sued) within a certain egad system is known as:

Legal personality.

According to the constitution of Kenya, a person can acquire citizenship in Kenya through several ways. Highlight three(3) ways of acquiring Kenyan citizenship.

i. A person is a citizen by birth if on the day of the person\'s birth, whether or not the person is born in Kenya, either the mother or father of the person is a citizenii. Clause (1) applies equally to a person born before the effective date, whether or not the person was born in Kenya, if either the mother or father of the person is or was a citizeniii. A person who is a Kenyan citizen by birth and who has ceased to be a Kenyan citizen because the person acquired citizenship of another country, is entitled on application to regain Kenyan citizenship.

TRUE or FALSE: In Kenya, citizenship can be lost through marriage or the dissolution of marriage.


In relation to the law of persons, highlight three(3) differences between a company and a cooperative society.

3 differences between a company and a cooperative society.

The Railways company of Kenya, KPLC and Kenya Tea Development agency are examples of ______.

Corporation aggregates.
Statutory corporations.
Corporation soles.
Government bodies.

TRUE or FALSE: Under a cooperation sole, only one person may occupy the position at any point in time, whereas a corporation aggregate has multiple members at any given time.


In reference to the law of persons, a (i). ________ refers to the group of people who unite to form one body under a special denomination, whereas, a (ii). _______refers to a person who represents an official position which has a single separate legal entity, and (iii). ______ refers to a public enterprise formed by a special Act of the parliament.

i. Corporation aggregate.ii. Corporation sole.iii. Statutory corporation.

The superior courts of Kenya consist of:

The Supreme Court, Magistrates’ courts, High Court, Environment and Land Court, and Court of Appeal.
The Court of Appeal, Court Martial, Tribunal Court-Supreme Court, Employment & Labor Relations Court, and High Court.
The Supreme Court, Kadhis Court, Court of Appeal, Court-martial, and High Court.
The Supreme Court, Court of Appeal, High Court, Employment and Labor Relations Court, and Environment and Land Court.

The Court of Appeal of Kenya is established under Article (i)_______of the constitution of Kenya and consists of several judges, being not fewer than (ii).________.


Which of the following is not true about of administrative tribunals?

They are similar to sub-ordinate courts or superior courts.
They offer cheaper and simplified procedures.
They offer efficacy and speed of justice
They are flexible, thus adaptable to different situations

TRUE or FALSE: The Environment and Land Court is a superior court that has the same status as the high court.


Which of the following disputes are not under the jurisdiction of the Industrial court in Kenya?

Disputes between employer and employee.
Disputes between employer and trade unions.
Registration of Collective Bargaining Agreements (CBAs).
Disputes relating to environmental planning and protection.

List five (5) classes of courts subordinate to the High Court established by the Magistrate Court.

i. Chief Magistrateii. Senior principal magistrateiii. A Principle magistrateiv. A Senior resident magistratev. A Resident Magistrate

Which of the following responsibilities is/ are not under the jurisdiction of the Supreme Court of Kenya?

The determination of the validity of a declaration of a state of emergency.
Determination of all criminal and civil matters.
Determination of cases concerning the violation and or infringement of the Bill of Rights.
The hearing of appeals on cases that have been concluded by the court of appeal.
The hearing and determination of appeals from any other court or tribunal as prescribed by the national legislation.
The hearing of appeals from subordinate courts and tribunals.
Issues advisory opinions on matters concerning the County Governments, in any cases involving the interpretation or application of the Constitution and in matters of general public importance.
Exercises supervisory jurisdiction over the subordinate courts and any person, body, or authority exercising a judicial or quasi-judicial function.
The determination of the validity of a declaration of a state of emergency.
The hearing and determining presidential election disputes.

The Supreme Court comprises of the (i).______, who is the President of the Court, the (ii)______who is the Vice-President of the Court, and (iii)._____other Judges.


i. Chief justiceii. Deputy chief justiceiii. Five

TRUE or FALSE: The supreme Court is established under Article 163 of the Constitution.


Which of the following matters relating to employment and labor relations not handled by the magistrates’ courts in pursuant to Gazette Notice no.6024 (2018) ?.

Trade disputes under the Labor Relations Act, 2007.
Offences under the Employment Act, 2007 & under the Labor Relations Act, 2007.
Offences under the Labor Institutions Act, 2007.
Offences under Occupational Safety and Health Act, 2007 & and Work Injury Benefits Act, 2007.

Highlight four(4) types of disputes that fall under the jurisdiction of the environmental and land court in Kenya in accordance with Article 162(2)(b) of the constitution

i. Disputes relating to compulsory acquisition of land.ii. Disputed relating to land administration and management.iii. Disputes relating public, private and community land and contracts.iv. Disputes relating to environmental planning, and protection, climate issues, land planning, title, tenure, boundary, mining & minerals.

TRUE or FALSE: The Environment and Land Court is a superior court that has the same status as the high court.


Outline three(3) grounds under which a judge of a superior court may be removed from office.

i. Inability to perform the functions of office arising from mental or physical incapacity.ii. A breach of a code of conduct prescribed for judges of the superior courts by an Act of Parliament.iii. Bankruptcy and incompetence.

Outline four(4) powers of the Court of Appeal.

i. To determine cases with finality.ii. To order a trialiii. To frame issues for the determination of the High Court.iv. To accept or receive additional evidence only if an application to that effect isv. To order a retrial.

TRUE or FALSE: The removal of a judge can be initiated only by the Judicial Service Commission acting on its motion, or the petition of any person to the Judicial Service Commission


_______ refers to bodies established by Acts of Parliament to exercise judicial or quasi-judicial functions to supplement ordinary courts in the administration of justice.

Administrative tribunals

The following are questions that might be heard by the high court under its jurisdiction to hear matters in respect of the interpretation of the constitution in Kenya. Which is/are not true?

Any constitutional relationship between the national and the county government
Whether anything said to be done under the authority of the constitution or any law is inconsistent with the constitution.
Whether anything said to be done under the authority of the constitution or any law is inconsistent with the constitution.
Whether there are any matters that relate to conflict of laws made by the county assemblies and those of the National assembly.

In natural justice, Nemo Judex in causa sua means that__________.

No person should be condemned unheard
Procedures must be free from bias.
Equality must be observed.
Constitution is respected and upheld.

TRUE or FALSE. An arbitration award may be reviewed by the court if the arbitrator was biased or there was fraud in the process


In reference to administration tribunals, which of the following statements is/are false?

As many of the members of the panel are selected from different walks of life with no or little legal background, they may lack the requisite legal expertise to adjudicate disputes.
As most of the members of the administrative tribunals are at the same time employees of the various offices or agencies, they are free from bias and partiality towards the agency.
Administrative adjudication is cheaper than court adjudication.
Administrative adjudication is more convenient and accessible to individuals compared to ordinary courts.

_________is a doctrine of constitutional law under which the three branches of government (executive, legislative, and judicial) are kept separate.

Separation of powers.

In Kenya, on the petition of any person, the President may exercise the power of mercy in accordance with the advice of the Advisory Committee established under clause (2), in several ways. Highlight three ways in which this may happen.

i. Granting a free or conditional pardon to a person convicted of an offense.ii. Postponing the carrying out of a punishment, either for a specified or indefinite period.iii. Substituting a less severe form of punishment or remitting all or part of a punishment

Quo warrant can be defined as:

A writ or legal action requiring a person to show by what warrant an office or franchise is held, claimed, or exercised.
A writ issued primarily to prevent an inferior court or tribunal from exceeding its jurisdiction in cases pending before it or acting contrary to the rules of natural justice.
A writ requiring a person under arrest of illegal detention to be brought before a judge or into court, especially to secure the person\'s release unless lawful grounds are shown for their detention.
A writ that is applicable to the private offices only and not to public offices.

In the application of judicial review, a (i).________refers to a writ issued by the Supreme Court or any High Court for quashing the order already passed by an inferior court, tribunal, or quasi-judicial authority, whereas a (ii). _________refers to a writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.

(i) Certiorarim , (ii).Mandamus.
(i).Cetiorari , (ii).Prohibition.
(i).Habeas corpus , (ii).Mandamus.
(i).Prohibition, (ii).Hebeas corpus.

TRUE or FALSE: An arbitration clause requires the parties to resolve their disputes through an arbitration process and binds the parties to a type of resolution outside the courts.


In reference to alternative dispute resolution,(i)_________is a method of dispute resolution in which parties settle their conflict and reach an agreement through discussion, whereas (ii)_________is a method of dispute resolution in which an independent third party assists the parties to conflict in resolving their disputes.

(i). Arbitration, (ii).Negotiation.
(i). Litigation,(ii). Mediation.
(i). Negotiation, (ii).Mediation.
(i). Mediation, (ii).Arbitration.

In reference to arbitration,_________arbitration refers to when parties to a contract agree to resolve future disputes via binding arbitration rather than in court or otherwise.

Contractual arbitration

TRUE or FALSE: If an arbitration award is outside the agreement, it is void, and since a void award cannot be severed from the rest of the award, the whole award is void.


Which of the following is not one of the ways disputes might be referred to arbitration?

By order of the court/judiciary
By consent of the parties
By stipulation
By order of the police.

TRUE or FALSE: The legislature makes the laws; the executive puts the laws into operation; and the judiciary interprets the laws.


Administrative law can be defined as:

The branch of law regulates and governs the relations of citizens with each other.
The law relating to the performance, management and execution of public affairs and duties
The supreme law of a country.
The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.

Highlight three(3) functions of judicial review.

3 functions of judicial review.

The two(2) rules of natural justice are:

The rule to follow the law and the rule of equity.
The rule to justice and the right to legal aid.
The rule against bias and the rule of the right to a fair hearing.
The rule against delay and the rule to equality.

TRUE or FALSE: Under the Bill of Rights in Kenya, the constitution outlaws abortion unless it is advised by a legally recognized medical practitioner to save the life of the mother or permitted under other circumstances like rape.


Which of the following is/are not rule(s) that govern the application for stare decisis ?

The following are rules that govern the application for stare decisis. Which is not true ?.
It obligates courts to follow historical cases when making a ruling on a similar case.
It obligates that cases follow the precedents of other similar cases in similar jurisdictions.
A subordinate court of appeal shall not be bound by a previous decision of its own

________ is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case.

Stare decisis

TRUE or FALSE: A Local custom need not conform with statute law before it can be recognized by the courts.


Under delegated legislation,(i)______ are regulations made by government departments,(ii) _______are made by county governments and local authorities, or public corporations, and (iii)________are issued by Cabinet Secretaries



i. Statutory Instrumentsii. By Lawsiii. Legal notices

__________refers to law made by an executive authority under powers given to them by primary legislation in order to implement and administer the requirements of that primary legislation.


Which of the following statements is not true about Islamic law in Kenya?

It can only be relied upon in proceedings in which all parties profess Islam faith.
It can be relied upon in the determination of both common law and civil cases
It is difficult to reconcile with the fundamental principles of democracy
It makes it to resolve cases where both parties adhere to Islam faith

In reference to precedents, define the following terms:
i. Original precedent
ii. Declaratory precedent
iii. Binding precedent
iv. Persuasive precedent
v. Distinguishing precedent

i. Original precedentii. Declaratory precedentiii. Binding precedentiv. Persuasive precedentv. Distinguishing precedent

_________refers to law as established by the outcome of former cases

Case law

TRUE or FALSE: In reference to maxims of equity, "Equity looks to form rather than intent".


Which of the following statements about using judicial precedents as a source of law is false ?.

Strict application of the judicial precedent makes the legal system inflexible and unresponsive to changes.
Case law is bulky and complex as many decisions have been made and there is no index. as to which of the are precedents in what cases, thus challenge in extracting the ratio decidendi.
Case law makes the legal system uncertain and unpredictable.
Case law facilitates consistency and uniformity in the administration of justice as similar cases are decided in alike.

When does a court of law declare delegated legislation substantially ultra vires?

Delegated legislation

In reference to Acts of Parliament as a source of law, which of the following statements is/are not true?

It is the process of passing bills into laws is quick and time saving
It is democratic as it reflects the wishes of those who are represented and what the law should be
Some Acts imposed on the people reflect the views of the executive or the ruling party.
It enables the parliament to find legal solutions to any problem that the country may face by passing new acts or amending existing ones.

The statements a lawyer tells the jury in a criminal case to convince them of his/her client's innocence are examples of (i) _________, whereas a unanimous decision held/reached by the Supreme Court judges that secularism is one of the basic structures of the constitution of Kenya is an example of (ii)_______.

(i). Ratio decidendi,(ii). Obiter dicta.
(i). Obiter dicta,(ii). Ratio decidendi.
(i). Obiter dicta,(ii). Defense arguments.
(i). Defense arguments,(ii). Ratio decidendi.

List six(6) branches of civil law.

i. Contract.ii. Tort.iii. Property.iv. Succession.v. Marriage.

An offense relating to a criminal act which has not, or not yet, been committed is called:

Inchoate offence
Felony offence
Strict liability offence

Plaintiff and defendant are the main parties in a (i).______case, whereas, prosecution and defense are the main parties in (ii) ______.


TRUE or FALSE: Legal wrongs are acts that are contrary to the rule of legal justice and violation of the law, whereas moral wrongs are acts that are contrary to the rule of natural justice.


Highlight four(4) differences between common law and equity.

4 differences between common law and equity.

___________refers to a written law produced by Parliament which originates from decisions made in other courts and the country's written constitution

Statute law

Outline five(5) types of punishments that might be inflicted in the Kenyan court of criminal law.

i. Death. ii. Incarceration.iii. Community serviceiv. Forfeiture.v. Compensationvi. Fines

TRUE or FALSE: While sanctions are invariably imposed for the infringement of a legal obligation, there is no official sanction for immoral behavior.


Highlight three(3) characteristics of law.

i. It is a set of rules that regulates human conduct.ii. It is the expression of the will of the people and is generally written down to give it definiteness.iii. It is backed by coercive authority and its violation leads to punishment.

In reference to criminal and civil law, which statements is/are not true?

Civil laws are applied when an individual has had his or her rights violated or when individuals have disputes with other individuals or organizations, whereas criminal laws are applied when an individual is convicted of crimes like arson, assault, and theft.
In criminal court, it is the responsibility of the state/prosecutor to prove that the defendant undoubtedly committed the crime, whereas in civil court, the burden of proof falls on the plaintiff, who must prove that it is more likely the defendant was responsible for the problem than not.
In a civil case, potential punishment includes incarceration/jail, probation, and fines, whereas in a criminal case, the defendant found guilty is ordered to pay damages in monetary form to the plaintiff or ordered to do or not to do something.
A defendant in a criminal case is entitled to an attorney and if he/she cannot afford one, the state must provide one, whereas in a civil case, the defendant is not provided with an attorney and must pay for one or offer self-defense.

In law, remedies are concerned with the character and extent of relief to which an individual who has brought a legal action is entitled once the appropriate court procedure has been followed, and the individual has established that he or she has a substantive right that has been infringed by the defendant. ________damages are imposed upon the defendant to punish or deter her/him, rather than to compensate the plaintiff.


TRUE or FALSE: The law of torts is an example of private law.


Which of the following is not an example to public law?

Constitutional law
Criminal law
Property law
Administrative law

__________refers to the to the body of rules that determine the rights and obligations of individuals and collective bodies.

Substantive law
Procedural law
Civil law
Civil law

Law can be defined as:

The ethical code of conduct for a human being.
The moral principles that govern a person\'s behavior or the conducting of an activity.
The set of rules and regulations enforced by the state to regulate the human behavior in society.
A body of fundamental principles or established precedents according to which a state or other organization is acknowledged to be governed.