Exam Preparation Made Easy
Exam Preparation Made Easy
ATD 1-LAW
Which of the following statements about bill of exchange and promissory note are not true?
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.
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.
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: In Kenya,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:
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:
TRUE or FALSE: In Kenya, 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:
Outline five(5) requirements of negotiability.
In relation to negotiable instruments, drawee in case of need refers to:
Highlight four(4) distinctions between a bill of exchange and a cheque.
Define negotiable instruments and provide three (3) examples.
Outline two (2) requirements for an acceptance of honor supra protest to be valid.
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.
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.
If a client makes the agent sign a contract specifying what the agent can and cannot do, this is an example of __________authority.
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.
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.
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.
Define the following terms:
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).
Outline three(3) rules governing the agency by ratification.
An agency by ratification is also known as_________ agency.
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 :
Highlight three(3) conditions that must be satisfied before the principle of contribution can be applied
Which of the following statements is/are true about insurable interest in life assurance?
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
__________refers to a document issued by an insurance company that provides proof of insurance coverage until a final insurance policy can be issued.
TRUE or FALSE: Life assurance pays out a tax-free sum to whomever you choose when you die, whereas Life insurance pays out a tax-free sum to whomever 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.
________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.
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.
An insurable interest can be defined as:
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.
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:
The ______ is the Government agency established under the Insurance Act, Cap.487 with a mandate to regulate, supervise and develop insurance sector in Kenya.
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?
TRUE or FALSE: An insurance contract is an example of a guarantee.
. Outline five(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.
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). _______.
Outline three(3) characteristics of a contract of guarantee.
Which of the following is not a party to a contract of guarantee?
_______ refers to a contract to perform the promise or discharge the liability of the defaulting party in case he fails to fulfill his promise.
Indemnity can be defined as:
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.
In reference to hire purchase agreements, which of the following statements is/are not true?
__________refers to temporary postponement of the payment of an outstanding bill or debt, usually involving repayment by installments.
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.
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 ?
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?
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.
Highlight five (5) implied terms in every hire purchase agreement.
Which of the following statements about the hire purchase agreement is/are not true?
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.
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)_________.
Ex-works contracts can be defined as:
Highlight three(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
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.
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.
Outline three(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.
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
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?
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.
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:
In a sale of goods, “quid pro quo” describes:
Contract of sale of goods can be defined as:
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.
(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?
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.
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:
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)_______.
Highlight six(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.
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.
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.
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?
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.
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.
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.
The tort of private nuisance :
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?
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?
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?
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:
In reference to general defense in tort, volenti non-fit injuria holds that :
Highlight six(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 :
A document that outlines in detail the rights and responsibilities of all parties to a business operation is known as :
Which of the following is not a feature of unincorporated association?
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
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.
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.
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?
The ability to have legal rights and duties (e.g. sue & be sued) within a certain egad system is known as:
According to the constitution of Kenya, a person can acquire citizenship in Kenya through several ways. Highlight three(3) ways of acquiring 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.
The Railways company of Kenya, KPLC and Kenya Tea Development agency are examples of ______.
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.
The superior courts of Kenya consist of:
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?
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?
List five (5) classes of courts subordinate to the High Court established by the Magistrate Court.
Which of the following responsibilities is/ are not under the jurisdiction of the Supreme Court of Kenya?
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.
TRUE or FALSE: The Supreme Court in Kenya 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) ?.
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
TRUE or FALSE: The Environment and Land Court in Kenya 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.
Outline four(4) powers of the Court of Appeal.
TRUE or FALSE: In Kenya,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.
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?
In natural justice, Nemo Judex in causa sua means that__________.
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?
_________is a doctrine of constitutional law under which the three branches of government (executive, legislative, and judicial) are kept separate.
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.
Quo warrant can be defined as:
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.
TRUE or FALSE: In Kenya, 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.
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.
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?
TRUE or FALSE: In Kenya, the legislature makes the laws; the executive puts the laws into operation; and the judiciary interprets the laws.
Administrative law can be defined as:
Highlight three(3) functions of judicial review.
The two(2) rules of natural justice are:
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 ?
________ is a legal doctrine that obligates courts to follow historical cases when making a ruling on a similar case.
TRUE or FALSE: A Local custom need not conform with statutory law before it can be recognized by the courts in Kenya.
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
__________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?
In reference to precedents, define the following terms:
i. Original precedent
ii. Declaratory precedent
iii. Binding precedent
iv. Persuasive precedent
v. Distinguishing precedent
_________refers to law as established by the outcome of former cases
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 ?.
When does a court of law declare delegated legislation substantially ultra vires?
In reference to Acts of Parliament as a source of law, which of the following statements is/are not true?
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)_______.
List six(6) branches of civil law.
An offense relating to a criminal act which has not, or not yet, been committed is called:
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.
___________refers to a written law produced by Parliament which originates from decisions made in other courts and the country's written constitution
Outline five(5) types of punishments that might be inflicted in the Kenyan court of criminal law.
TRUE or FALSE: While sanctions are invariably imposed for the infringement of a legal obligation, there is no official legal sanction for immoral behavior.
Highlight three(3) characteristics of law.
In reference to criminal and civil law, which statements is/are not true?
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?
__________refers to the to the body of rules that determine the rights and obligations of individuals and collective bodies.
Law can be defined as:
