Sale of goods – Questions and Answers

Subject Title: Introduction to Law and Governance Revision Kit

TOPIC: Sale of goods

QUESTION 1
April 2023 Question One C
In relation to the sale of goods, state FIVE forms of delivery. (5 marks)

QUESTION 2
December 2022 Question One C
Discuss FOUR ways in which the right to lien as a remedy of unpaid seller might be lost.
(8 marks)
QUESTION 3
April 2022 Question One A
With specific reference to the sale of goods law;
(i) Identify three reasons why it is important to determine when property in goods passes.
(3 marks)
(ii) List five remedies available to a buyer in a sale of goods contract. (5 marks)

QUESTION 4
December 2021 Question Six A
With specific reference to international contracts of sale, provide the full name of the following abbreviations:
(i) FAS. (1 mark)
(ii) FOB. (1 mark)
(iii) CIF. (I mark)
(iv) FCA. (1 mark)
(v) CPT. (1 mark)
(vi) CIP. (1 mark)

QUESTION 5
December 2021 Pilot Paper Question Five C
Citing relevant cases, expound the obligation of the credit broker (dealer) in sale of goods act. (2 marks)

QUESTION 6
December 2021 Pilot Paper Question Six C
Komba promised to supply Nyule with 100 bags of yellow beans on Wednesday, 27 October 2021. Nyule accepted to pay the price after receipt of goods. On the agreed day, Komba did not supply the goods.

Required:
(i) Explain the liability of Nyule. (2 marks)
(ii) Expound on when the court may refuse to grant recession order. (8 marks)

QUESTION 7
December 2021 Pilot Paper Question Seven B
Distinguish between sale agreement and agreement to sale. (2 marks)

QUESTION 8
August 2021 Question Two A
Wesley Patel purchased 1,000 kgs of canned fruits from Tunda Tamu Fruits Company Ltd. at a price of Sh.500,000. It was agreed that delivery was to be in boxes containing 50 tins each upon delivery. Some of the boxes supplied contained 30 tins and others 55 tins and Tunda Tamu Fruits Company Ltd. made a delivery of 1,100 kgs of canned fruits. Wesley Patel has received the delivery and feels aggrieved.

Explain to Wesley Patel the legal principles applicable in the above case. (8 marks)

QUESTION 9
August 2021 Question Three B and C
(b) Describe five purposes of the public procurement and asset disposal law in your country. (5 marks)
(c) Oakland Company Ltd. employed Chief Kingi as a salesman. A year later, the company terminated the services of Chief Kingi due to dishonesty. The company did not inform its customers about the dismissal. Jimmy Brian, one of the company’s customers, paid Sh.500,000 which he owed the company to Chief Kingi two months after he was dismissed. Chief Kingi did not remit the money to the company and went into hiding. Oakland Company Ltd. has sued Jimmy Brian for recovery of the Sh.500,000.

Analyse the legal principles applicable to the above case and advise Jimmy Brian and Oakland Company Ltd. (10 marks)

QUESTION 10
August 2021 Question Four B
In relation to the law governing sale of goods:
(i) Define the term “goods”. (2 marks)
(ii) Explain four rights of a buyer. (4 marks)
(iii) Discuss three rules governing the passing of risk in a sale of goods contract.
(6 marks)
QUESTION 11
August 2021 Question Six B
Describe three ways through which a hire purchase contract may be terminated. (6 marks)

QUESTION 12
May 2021 Question Two B
Lilian Pendo walked into a pharmacy and asked Cassandra Kinga, the pharmacist, to supply her with medication that could cure her (Lilian’s) sore threat.

Required:
i) Describe five terms that are implied by law in the sale transaction above.
(10 marks)
ii) Summarise four exceptions to the doctrine of caveat emptor. (4 marks)

QUESTION 13
November 2020 Question One A and B
(a) Generally, there is no implied condition as to fitness for any as purpose of the goods supplied.
Outline four exceptions to the peel rule above. (8 marks)
(b) Enumerate four duties of the seller under the cost, insurance and freight contracts of sale
(4 marks)
QUESTION 14
November 2019 Question Two B
In relation to sale of goods:
i. Outline four circumstances when a buyer might reject the goods and repudiate the contract. (4 marks)
ii. Explain three circumstances under which the unpaid seller might exercise his right of lien. (6 marks)

QUESTION 15
May 2019 Question Five A
In the context of sale of goods contract:
(i) Outline five remedies of the unpaid seller. (5 marks)
(ii) Explain three ways in which a buyer is deemed to have accepted goods. (3 marks)
(iii) Define the term “auction sale”. (2 marks)

QUESTION 16
November 2018 Question Six B and C
(a) Tom Obonyo wrote to Jerry Katana offering to sell his car to him at Sh.500,000. Jerry Katana accepted Tom Obonyo’s offer subject to the price being reduced to Sh.450,000. It has become apparent that Tom Obonyo is not willing to sell the car at Sh.450,000. Jerry Katana now writes to Tom Obonyo agreeing to buy the car at Sh.500,000 but Tom Obonyo responds that he has already sold it to a third party. Jerry Katana is upset and comes to you for advice.
Advise Jerry Katana on the legal position. (8 marks)

(b) Explain the meaning of the following terms as used in international contracts of sale:
(i) Free Alongside Ship (FAS). (2 marks)
(ii) Free On Board (FOB). (2 marks)

QUESTION 17
May 2018 Question Three A
In relation to the contract of sale of goods:
(i) Explain three categories of unascertained goods. (6 marks)
(ii) Explain the meaning of the term “resale”. (2 marks)
(iii) State four circumstances when the unpaid seller might exercise the right of resale.
(4 marks)
QUESTION 18
May 2018 Question Four C
Ken Jembe advertised the sale of his farm. He was approached by Peter Polea who wanted to buy the farm, in the course of negotiating the price, Peter Potca asked Ken Jembe how many sheep could be reared on the farm. Ken Jembe replied, “I have not used the farm for sheep rearing but I think it could support 2,000 sheep”. Peter Potea bought the farm and immediately, purchased 2,000 sheep to rear on it. However, the farm was unable to accommodate the sheep and Peter Potea is aggrieved. He intends to sue Ken Jembe for misrepresentation.

Advise Peter Potea. (10 marks)

QUESTION 19
November 2017 Question One A
With reference to the Sale of Goods Act, or the equivalent law on the sale of goods in your country:
(i) Explain the meaning of the rule “nemo dat quod non habet’’. (4 marks)
(ii) Discuss four exceptions to the rule in (a)(i) above. (8 marks)

QUESTION 20
May 2017 Question Two A
With reference to the law on the sale of goods:
(i) Highlight two purposes of incoterms. (6 marks)
(ii) Outline three duties of the seller under delivered at place (DAP) contracts of sale.
(6 marks)
(iii) Describe five salient features of “price” in a sale of goods contract. (6 marks)

QUESTION 21
May 2017 Question Six A
Agnes Pure purchased a sewing machine from High Hopes Limited under a hire purchase agreement. High Hopes Limited did not disclose to Agnes Pure that the sewing machine was being let on second hand basis as it had been repossessed from another hirer. Agnes Pure took possession of the sewing machine but on reaching home, she realised that it was not in a working condition. When Agnes Pure read the terms of the hire purchase again, she discovered that High Hopes Limited had exempted themselves from any liability whatsoever.

Analyse the legal principles applicable in the above case and advise Agnes Pure who intends to sue High Hopes Limited. (10 marks)

QUESTION 22
November 2016 Question Four A
Discuss five circumstances under which a non-owner of goods might pass a valid title to the buyer in a sale of goods contract. (10 marks)

QUESTION 23
November 2016 Question Five A
Discuss four remedies available to a buyer in case a seller breaches a contract of sale of goods. (8 marks)

QUESTION 24
November 2015 Question Four A
With specific reference to sale of goods contract:
(i) Explain two implied warranties. (4 marks)
(ii) Identify four essential characteristics of a sale of goods contract. (4 marks)

QUESTION 25
Pilot paper 2015 Question Six A
In relation to sale of goods, explain four rules relating to auction sales. (8 marks)