Introduction to Law and Governance Case study Question

Subject Title: Introduction to Law and Governance Revision Kit

QUESTION 1
Kamau advertised the sale of his farm. He was approached by Keter who wanted to buy the farm. In the course of negotiating the price. Keter asked Kamau how many sheep could be reared on the farm and Kamau replied, “I have not used the farm for sheep rearing but I think it could support 2000 sheep.”

Keter bought the farm and immediately purchased 2000 sheep to rear on it. However, the firm is unable to accommodate the 2000 sheep and Keter is aggrieved and intends to sue Kamau for misrepresentation.

Advise Kamau. (10 marks)

QUESTION 2
Akili Mingi owns a house at Muthaiga in Nairobi valued at Sh. 20 million. He insured it against fire with Linda Mali Insurance Co. Ltd and Pokea Insurance Co. Ltd for Sh. 15 million and Sh. 10 million respectively. He also insured his household goods against burglary with Lipa Insurance Co. Ltd. for Sh. 5 million. One night while he was away, burglas broke into the house, stole all household goods and set the house on fire completely destroying it.

Akili Mingi claims the sum assured from the three insurance companies. Advise them.
(12 marks)
QUESTION 3
The “Harbinger,” a newspaper of wide circulation recently published an educational article in one part of its columns “the close structural resemblance between man and the gorilla.” It illustrated the point by two photographs. One was a man in a wrestling pose with the caption “Hamisi Nduati not fundamentally different from the gorilla in physique.” Mr. Hamisi Nduati has realized that the photograph was taken in one of his wrestling contests which he won. He alleges that he enjoys international reputation as an outstanding wrestler and he therefore argues that he has been defamed. He comes to you for legal advice.

Advise him. (8 marks)

QUESTION 4
Arnold wrote to Ben offering to sell him a consignment of goods. In the letter he advised Ben to telephone his decision to Cecilia, Arnold’s wife. Explain whether there is a valid contract between Arnold and Ben in the following situations:
i) Ben does not telephone Cecilia but writes to Arnold accepting his offer. (4 marks)

ii) Ben sends a telex to Arnold accepting the offer. (4 marks)

QUESTION 5
Annan agreed to paint Angela’s house at an agreed price. When Annan had finished the work. Angela discovered that although most of the painting was satisfactory, Annan had forgotten to apply a coat of gloss paint on one of the doors. Annan fell ill and could not complete the work. Angela refused to pay Annan the contractual price, claiming that the contract had not been fully executed and that therefore he was entitled to be paid only a reasonable sum for the work he had actually undertaken. This, Annan claimed, was much less than the contract price.

Advise Annan. (10 marks)

QUESTION 6
Mrs. Hamilton borrowed Sh. 5 million from White Bank and offered her house at White Highlands Estate as a security. She has been unable to service the loan and is in arrears. The bank intends to realize the security and seeks your legal advice on what options they can take to realize the security.

Advise White bank. (10 marks)

QUESTION 7
Due to Desmond’s carelessness in allowing excessive electric current to develop in his generator, the electricity supply to the locality cut after a few hours.

As a result, Derrick’s factory was at a standstill during this period and he lost Sh. 50,000 by way of profits from lost production.

Advise Derrick in regard to his rights, if any, against Desmond. (8 marks)

QUESTION 8
Mr. Karanja signed blank cheques and left them with his wife to draw cash while he was away attending to business affairs. Mrs Karanja instructed Hatari, a clerk in the firm of Karanja and Karanja Associates to fill in the cheques. Hatari filled in the amount leaving a gap after the words “Sh.” and wrote the amount in words from the middle of the line without using a capital letter. Hatari showed the cheques to Mrs Karanja written “Sh. 50,000” and fifty thousand only.” He was authorized to encash the cheque.

However before presenting the cheque for payment Hatari added figure “3” to the amount in figures and “three hundred” in the words. He encashed the chequed for Sh. 350,000. He then gave Mrs. Karanja Sh. 50,000 only. These facts have come to light after Hatari’s resignation and Mr. Karanja intends to sue his bankers.

Advise the bank. (10 marks)

QUESTION 9
Mwangi has stolen some goods from Simiyu. The police prosecute Mwangi for theft and Simiyu sues him for the return of the goods.

(i) Explain under what law the action by the police will be based. (2 marks)
(ii) In this action by the police, state what Mwangi will be called. (2 marks)
(iii) Under what law would the action brought by Simiyu be and what would Simiyu be called? (2 marks)

QUESTION 10
Sauti Cleaners Ltd. offered to clean two garments for the price of one. A notice was displayed in the shop to this effect but with the addition in smaller print of a statement that he customer must agree in return to accept full responsibility if anything should happen to the garments.

A similar statement was printed on the back of the tickets which were handed to customers when they disposed the garments. Nabayi bought two garments for cleaning.

QUESTION 11
Simiyu wishes to buy his son a car as a birthday present. Wheeler-Dealer offers to sell to Simiyu a second-hand car explaining that the brakes need attention and that he would reduce the price to take account of this. Wheeler-Dealer says that he will take no responsibility for this or other defects. Simiyu accepts the offer without examining the car. If he had done so, he would have seen that the tyres were badly worn out. Simiyu drives away the car but because of defects it fails to negotiate a bend in the road. The car loses control, strikes a wall and is damaged beyond repair.

Advise Simiyu of his rights, if any, against Wheeler-Dealer. (10 marks)

QUESTION 12
Kinyago, a small scale farmer agreed to take a television set and a radio from Malipo Rahisi Ltd., a hire purchase firm last year.

The hire purchase price for both items was Sh. 90,000. He paid a deposit of Sh. 30,000 and the balance was payable by monthly instalments of Sh. 5,000. After paying instalments for six months, he defaulted. Malipo Rahisi ltd. Promptly repossessed the goods.

Discuss the legal position. (10 marks)

QUESTION 13
Beeky and Beth entered into a partnership selling girls‟ clothing under the registered name of „Girlie.‟ Becky, without consulting Beth set up a boy’s clothing shop under the registered name “BOYZ Clothes” while retaining her partnership with „Girlie‟. This has given rise to frequent quarrels between Becky and Beth. Beth has now refused Becky admission to the firm‟s premises and will not discuss the position with Becky.

Beth wishes to dissolve the partnership and would like Becky to account for profits she has derived from „BOYZ Cloths.”.

Advise Beth. (8 marks)

QUESTION 14
Karanja has been a tenant in Wamalwa’s house for the last three months. The parties had executed a lease for a period of one year. However, Wamalwa is aggrieved as Karanja has broken all the doors in the house following several fights with his wife.

Wamalwa now seeks your advice on the various ways in which he may terminate the
lease agreement and lawfully evict Karanja.

Advise Wamalwa. (8 marks)

QUESTION 15
Jambazi sneaked into Cassman Green‟s compound with the intention of breaking into his car and stealing a radio cassette. As he was walking towards the car park, he fill into a pit which Green had dug to construct a water reservoir. As a result Jambazi was seriously injured.

Jambazi now seeks your legal advice as to whether he can successfully sue Green. State the legal principles applicable to the above facts and advise Jambazi. (10 marks)

QUESTION 16
Ndolo attended an auction conducted by Fagia Auctioneers Ltd. The auction goods were displayed in three different lots. However, Ndolo bid for the goods under a mistaken belief that he was bidding for all the goods. Eventually. When he went to collect the goods, he found only one lot reserved for him. Ndolo is aggrieved and seeks your legal advice.

Advise him. (6 marks)

QUESTION 17
Raju appointed Kariuki to transport fresh fish from Mombasa to Nairobi. As Kariuki was preparing to leave Mombasa to Nairobi, it rained heavily and the Thange River Bridge was swept off. As a result, Kariuki chartered a flight to Nairobi to deliver the fish as he feared the fish would go bad and he was unable to immediately contact Raju. However, upon arrival in Nairobi and delivery of fish, Raju refused to reimburse Kariuki charges for the flight Kariuki intents to sue Raju. Advice him. (10 marks)

QUESTION 18
Jackson entered into a contract with Jacinta whereby Jackson was to introduce Jacinta to Tajiri with a view of Tajiri marrying Jacinta. Jackson asked Jacinta to give him Sh. 10,000 which she did. Jackson then introduced Jacinta to Tajiri and Tajiri promised to marry Jacinta in case his wife who was by then very ill in hospital passed away.

However, Tajiri‟s wife Juliana underwent a successful surgery and fully recovered from the illness. Tajiri has now refused to marry Jacinta.

Jacinta is aggrieved and wishes to sue Jackson and Tajiri. Advise her. (10 marks)

QUESTION 19
Alex is a customer at Pesa Bank. Three days ago, he visited the bank and complained that he had noticed from his bank statement that three unauthorized withdrawals had been made and his account debited. Investigations reveal that the withdrawals were made by Charles. Alex’s office messenger who stole Alex’s cheque book made out the payments and subsequently forged Alex‟s signature.

Explain the legal position of Pesa Bank. (12 marks)

QUESTION 20
A contract of sale of goods by sample between Ben and Sally provided that payment of the goods was to be made on arrival against the shipping documents.

Ben, who is the buyer, paid for the goods before he had the opportunity to examine the goods. Later, on examinations, Ben found that the bulk of the goods did not correspond with the sample. Explain in detail whether Ben can reject the goods. (8 marks)

QUESTION 21
Terry is a tenant of Lucas under a lease agreement signed and executed by both parties. At the time of signing the lease, Lucas had promised Terry that he would repair a window which had broken. A year has lapsed and the window is not yet repaired.

In the meantime, Lucas has been constructing a house next to the house occupied by
Terry. He has been using Terry’s compound as a storage for timber and other construction materials.

Terry has been under constant disturbances by the builders requiring her to open the gate so that the building materials, could be bought in and taken out. This has made the compound dirty and noisy.

Terry seeks to know the rights which would protect her against these inconveniences under the lease agreement. Advise her. (8 marks)

QUESTION 22
Muthoga entered into a five year lease agreement for office premises with Njenga. After the end of the lease period, the parties agreed that Njenga would continue occupying the office premises for another five years. On that basis, Njenga made extensive renovations to the office premises.

Muthoga has now given Njenga notice to vacate the office premises claiming that the lease agreement had expired.

Advise Njenga on his legal rights. (8 marks)

QUESTION 23
Namweya and Nabayi are both tenants and neighbours at a residential estate. Namweya runs a posho mill business on the premises adjoining the house of her neighbour Nabayi. The posho mill is diesel propelled and when in use causes a lot of vibrations.

Recently, as a result of the vibrations from the posho mill, a beam fell from the roof of the adjoining house occupied by Nabayi and injured her. Nabayi claims that the vibrations of the posho mill have been a nuisance and has as a result sued Namweya for damages.

Explain the legal principles applicable in this case and advise both Namweya and Nabayi.
(10 marks)
QUESTION 24
Harry and Thuku agreed to meet for a business lunch at a restaurant in town. During the lunch, Chuma one of Thuku’s friends joined the two and began to participate in the discussions. Chuma told Harry that he was Thuku’s agent to which Thuku did not object.

A week later, Chuma obtained goods on credit from Harry, allegedly on behalf of Thuku.

Chuma has since disappeared and Harry is demanding payment from Thuku.

Advise Thuku. (10 marks)

QUESTION 25
Saida planned to stage a big band concert and engaged a number of eminent musicians. She paid each musician 10% of the agreed fee at the time the separate contracts were made. Five days before the concert, Saida was informed that three of the musicians Yvonne, Omar and Mike would not appear. Yvonne could not come as she was bed ridden with acute bronchitis. Omar was unable to attend the concert as his country was engaged in war and Mike could not show up because his fees was not large enough. Saida was concerned and feared that the concert would be a failure. Saida therefore decided to cancel the concert. Saida seeks your advice on her legal rights against the three musicians.

Advise Saida. (12 marks)

QUESTION 26
Stanley leased his house at Highlands Gardens to Oliver. The lease agreement was signed by both parties and the lease was to run for a period of two years.

Stanley has been having domestic problems with his wife. Recently, Stanley’s wife stormed into the premises lease to Oliver and threatened to evict him and his family if they did not vacate the leased premises. Oliver has not breached any of the terms of the lease agreement and is aggrieved.

Advise Oliver on his legal rights and the remedies available to him. (10 marks)

QUESTION 27
Paul wrote a will and bequeathed all his property to his wife Nina. Two years later, Paul was diagnosed as suffering from a terminal disease. He blamed it on his wife Nina and then called his friends Mark and Matthew and verbally told them in case he died before Nina, she should not inherit his property, instead all his property should be inherited by his mother Tina. Paul died three weeks ago and Nina has sought to inherit his property under the will, but Paul’s mother has vehemently resisted Nina’s claim.

Discuss the legal position of Nina and Tina. (12 marks)

QUESTION 28
Stephane issued a cheque in favour of Thorne. However, when Thorne presented it for payment it was dishonoured and returned marked “R.D.”. It now transpires that when the bank clerk was checking on Stephane’s balance he checked on the wrong account and as a result the cheque was dishonoured under a mistaken belief of lack of funds.

Explain Stephane’s rights against the bank. (8 marks)

QUESTION 29
Mutuku employed Mwanzia as a petrol tanker driver. While petrol was being off-loaded from the tanker, Mutuku who was standing nearby lit a cigarette. Unfortunately the petrol caught fire and burnt the whole station and injured several people.

Mpole the proprietor of the petrol station seeks your advice on whom he can sue. Advise Mpole. (10 marks)

QUESTION 30
Mrs. Karanja and Mrs. Waithaka are neighbours. Their sons, Mwaura Karanja and Mwangi Waithaka, had a fight and Mwangi was hurt.

In annoyance, Mrs. Waithaka hurled a stone at Mrs. Karanja but the stone did not hit Mrs. Karanja. Mrs. Waithaka rushed to her house and came out with a bucket of water which she splashed on Mrs. Karanja making her clothes wet. Mrs. Karanja intends to sue Mrs. Waithaka.

Advise Mrs. Karanja on the kinds of tort that she may seek redress from. (12 marks)

QUESTION 31
Kate delivered her clothes to Mary for repair and paid for the work in advance. It was agreed that Mary would deliver the clothes to Kate’s house upon repair. However,
Mary did not take the clothes back as agreed and in the process they were stolen when a burglar broke into Mary’s premises. With reference to the above facts, highlight Mary’s liability, if any. (6 marks)

QUESTION 32
S. a former student at Masaku High School owes the school Sh. 50,000 as fees in arrears. Mr. P. the principal of the school wrote a demand letter to F. S‟s father threatening to sue S if the school fees in arrears was not cleared within seven days. F approached P and offered to make payment by delivering 30 bags of maize valued at Sh. 30,000. On condition that it would be full and final payment of the debt owed to the school.

Mr. P accepted the offer and the maize was delivered to the school. Two years later, S was employed and Mr. P now intends to sue him for the fee balance.

Discuss the legal position of S. (8 marks)

QUESTION 33
Roy Simiyu, a successful businessman would like to obtain some funds for expansion of his business premises through a mortgage facility.

Roy Simiyu would like to know what options would be available to the bank with regard to the proposed security in the event of his business failing and his being unable to repay the loan.

Describe the options available to the bank. (10 marks)

QUESTION 34
Hassan Payuka is the proprietor of Parrot Daily Newspaper which published an article two weeks ago to the effect that Mrs. Rose Brown the managing director of Child Welfare Organisation had embezzled, Sh. 5 million from the organization to purchase a private residential house for herself and family. Investigations have revealed that Mrs. Rose Brown bought the house out of a loan of Sh. 6 million advanced to her by East Bank and secured on the house. Mrs. Rose Brown is aggrieved and seeks your legal advice.

Advise her. (8 marks)

QUESTION 35
Abraham instructed Sarah, an auctioneer to sell his house by auction. The sale was subject to a reserve price of Sh. 1 million. Sarah advertised the house stating that it was subject to a reserve price. However, she sold the house to her Sister Mary at Sh. 900,000. Abraham has refused to accept the proceeds and to transfer the house to Mary. Mary has demanded the transfer of the house by Abraham to her.

Explain the legal position of Abraham, Sarah and Mary. (10 marks)

QUESTION 36
Mr. A, a car dealer sells second hand cars. On Thursday last week, he placed an advertisement in a daily newspaper which stated the following:

“Once in a lifetime, opportunity to own a one year old Nissan Caravan, low mileage, Kshs.500,000 cash. The offer is valid for only one day and the car will go to the first person who accepts it.”

When Mr. B saw the advertisement, he immediately posted a letter of acceptance of Mr. A‟s offer.
Mrs. C also saw the advertisement and came to inspect the car after which Mrs. C offered Mr. A a cheque of Kshs. 500,000. However, Mr. A refused to accept the cheque stating that another potential buyer had already offered to buy the car.

Later in the day Ms D, another interested buyer telephoned Mr. A informing him that she was willing to buy the car but asked Mr. A if he would keep the offer open until she could go to her bank to obtain a loan. Mr. A accepted the request. However later, in the day, Mr. E, another potential buyer said that he would pay Sh. 600,000 in cash for the car. Mr. A agreed to sell the car to Mr. E.

On Monday morning, Mr. A received Mr. B‟s letter of acceptance. At the same time, Mr. E returned to complete the transaction. However, in the afternoon Mr. E telephoned Mr. A to say that he had second thoughts and he no longer wished to purchase the car.

Citing relevant decided cases where applicable, explain the legal principles in the case in relation to:
(a) Mr. A (4 marks)
(b) Mr. B (4 marks)
(c) Mrs. C (4 marks)
(d) Ms. D (4 marks)
(e) Mr. E (4 marks)

QUESTION 37
Peter Ole Yang, while driving his car down Valley View road suddenly realized the brakes of the car had failed. Unable to stop the car he crashed into a motor vehicle driven by James Kagio, damaging James Kagio’s motor vehicle and injuring him.

Advise Peter Ole Yang as to his civil liability. (6 marks)

QUESTION 38
Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings) to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed the money for and Simiyu Tito replied that he needed Shs. 2,000 (two thousand shillings) to buy food for his children and Shs. 3,000 (three thousand shillings) to bribe someone who could fix for him a person who had been bothering him. Wanyonyi Peter lent Simiyu Tito the money. A month later, when Wanyonyi Peter asked Simiyu Tito for repayment of the Shs. 5,000 (five thousand shillings), Simiyu Tito refused to do so.

Explain the legal principles applicable in this case and advise Wanyonyi Peter. (8 marks)

QUESTION 39
Charlie Kabue leased his shop at High Pole Commercial centre to Ray Matata for a period of two years. In the lease agreement, Ray Matata was prohibited from using the shop for any other business other than for sale of groceries.

Charlie Kabue has discovered that Ray Matata has rented out the room used as a store of the shop to Ben Chege.

Moreover, Ray Matata is in rent arrears. Mr. Charlie Kabue is aggrived and seeks your advice on the remedies available to him.

Advise him. (6 marks)

QUESTION 40
Abel Rigo received a bill of exchange for value from Boaz Ngao who had obtained the instrument fraudulently. Abel Rigo fearing that the bill might lapse, presented it for payment whereupon it was dishonoured.

State with reasons whether Abel Rigo can claim to be a holder in due course. (4 marks)

QUESTION 41
Mrs. Mutua employed Emmah as her sales agent. For several years Emmah sold goods to Mrs Cool, the proprietor of Ever Smart Boutique. Subsequently, Mrs. Mutua dismissed Emmah but did not inform Mrs. Cool of Emmah‟s dismissal.

After her dismissal, Emmah collected Sh. 50,000 from Mrs. Cool on behalf of Mrs.
Mutua. Mrs. Mutua has demanded the Sh. 50,000 from Mrs Cool who has refused to pay as she had already paid Emmah. Mrs Mutua intends to sue Mrs Cool.

Advise Mrs. Mutua. (10 marks)

QUESTION 42
Abdalla, the proprietor of Hesabu House, place a warning sign outside the entrance of the building that the floors of the premises were slippery. Makanyanga who was in a hurry to attend tuition classes did not see the notice. As Makanyanga was rushing to class, he slipped, fell and fractured his hand. He now seeks compensation from Abdalla.

Discuss the legal position of both parties. (12 marks)

QUESTION 43
Mr. Jumbe who was vying for the national chairmanship of a political party, engaged Mr. Musika, a local musician to perform in a series of campaign meetings the political rallies were scheduled to be held at the Wazalendo Stadium. Mr. Jumbe paid Mr. Musika fifty thousand shillings as part payment for the performance fee.

Explain the legal position, if before the first rally can be held:

(i) The dais and seats at Wazalendo Stadium are burnt down and the rallies have to be cancelled. (4 marks)

(ii) Mr. Musika is found guilty of being in possession of narcotics and selling it to minors. He is arrested and sentenced to a one year jail term. (4 marks)

QUESTION 44
Mokua married Kemunto in 1970. Both has lived happily with their Jon Joash until Mokua died in a tragic road accident in November 1991. Unfortunately Mokua had not made a will in respect of all his free property. Kemunto does not know her rights over the property left by her husbands. She comes to you for advice.

Advice her. Would your advice be different if they had no child?

QUESTION 45
Kariuki entered sunset supermarket, picked up one of the wire baskets provided and filled it with groceries from the shelves. As he was approaching the cashier he realized that his purse had been stolen and decided to replace the good on the shelve. The manager of the supermarket who had been observing Kariuki‟s movements instructed one of his assistants to approach Kariuki and tell him that the goods had been sold and he could not replace them on the shelves.

Advise Kariuki.

QUESTION 46
S sells a car to P. the agreement contains the following clause; “since the car is sold cheaply, on no condition or warranty that the car is roadworthy is given.” The car fails to move from the show room. S insists a legitimate deal has been concluded.

Advise P.

QUESTION 47
A builds a factory for the manufacture of chemical called synoyd. After the factory is completed and becomes operation, it turns out that it emits a lot of fumes which in themselves are a nuisance to A’s neighbours. What is worse, it has also transpired that when it rains, the fumes after mixing with the rain-water produce a substance that is destroying fish in the nearby lake. As neighbour are unhappy and wish to sue him.

Advise them.

QUESTION 48
Janet and Mary entered into a contract in which Janet was to sell a car to Mary, for Sh. 250,000. Unknown to the parties, the car which had been parked at John’s garage had been burnt down that morning following a fire outbreak at the garage. Mary had paid Janet Sh. 100,000 as deposit. She now intends to sue Janet for breach of contract

Advise Janet. (8 marks)

QUESTION 49
Explain the legal principles applicable in each of the cases listed below:
(i) B entered into C‟s land to recover a time rabbit which belonged to B‟s children.
(5 marks)
(ii) H pasted a poster on D‟s wall advertising a disco-dance competition meant for raising funds for a local charity. (5 marks)
(iii) F cut down the branches of a mango tree belonging to G, his neighbour, which had extended to his land. He picked the ripe mangoes from the fallen branches and gave all of them to children in his vicinity. (5 marks)