Case study and questions

1. Ben purchased a motor vehicle from Arizona motors ltd under a hire purchase agreement at a cost of sh. 600,000 payable in twelve installments. After paying six installments, he gave the car to his wife lsaby as a gift. The following month, their relationship become strained and ben moved out of the matrimonial home taking car with him. lsaby feels aggrieved and has come to you with mandatory instructions to file a case against ben for recovery of the car

Identify the legal principles applicable in the above case and advise lsaby.

2. Describe five duties of the owner of goods in the hire purchase agreement.

3.Where goods have been let under a hire-purchase agreement and two-thirds of the hire purchase price has been paid the owner shall not enforce any right to recover possession of the goods from the hirer otherwise than by suit.

Explain three consequences of contravention of the above provision by the owner

4.Explain the information that must be contained in the written memorandum of a hire purchase agreement for the agreement to be enforceable.

5. Explain the meaning of the term hire purchase agreement

6. The hire purchase act implies some terms in every hire purchase agreement. One of these terms is merchantability. This is a condition that the goods are of merchantable quality unless they are second hand. There are however some instances where its conditions may be dispensed with

Outline two of the instances when merchantability may be dispensed with.

7. One of the important legal maxims in the application of the law of agency is expressed as A delegate cannot further delegate.

In relation to the above statement, discuss five circumstances under which an agent might appoint a sub-agent

8. With reference to the law of agency

Distinguish between special agent and general agent

Highlight five conditions which must be fulfilled for a principal to effectively ratify the acts of an agent

Outline three obligations of an agent to the principal

9. Explain three conditions that should be fulfilled for agency by necessity to arise.

Identify two circumstances when an agency relationship might come to an end by an act of the parties

10. Identify ten fiduciary duties imposed on an agent when acting primarily on behalf of a principal.