Question
(a)James, Francis and Rose formed a general partnership for purposes of selling various types of construction materials. After one year in business, they decided to
(a)James, Francis and Rose formed a general partnership for purposes of selling various types of construction materials. After one year in business, they decided to add more partners and they mutually agreed to include Kate, Joy and a minor aged 14 years by the name of Mraza.
After three months and unknown to James, Francis and Rose, Kate and Joy developed a disease which made the two insane. While they were so insane they borrowed Kenya shillings twenty million from a local bank in the name of the partnership and they donated the entire sum to a charitable organization. The bank has now sued all the partners seeking recovery of the sum borrowed but James, Francis and Rose resist the claim on grounds that they cannot be bound by acts of insane partners and Mraza resists the claim on grounds that he is a minor and that even if judgment was to be given against the partnership the minor's share should not be attached.
Two Months after the suit was filed James ceased to be a partner but the firm continued retaining his name on its letterhead. Brian, a third party who had dealt with James before while James was abona fidepartner, supplied construction materials to James worth Kenya shillings forty million and James received the materials without disclosing that he had left the partnership and promised that the partnership firm would pay Brian within two weeks. After two weeks Brian went to claim his money from the partnership and the partners declined to pay alleging that there was no contract between them and Brian and that James, having left the partnership, could not legally enter into transactions which could bind the partnership.
(i) Explain the legal position in respect of the claim by the bank bearing in mind the contentions raised by James, Francis, Rose and Mraza.use kenyan laws and kenya cases
(ii)Explain the legal position in respect of the claim by Brian bearing in mind the allegations made by the partners in resisting his claim.use kenya laws and kenyan cases
(b)The devolved system of governance introduced by the 2010 constitution caused initial confusion in the registration and regulation of cooperatives. Analyze the measures that the courts, county governments and the national government have and are in the process of implementing to restore clarity.use kenya laws and kenya cases
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