QUESTION ONE

Aldo, a manufacturer from Kagemi, entered into a contract with Ben, a wholesaler from Ziwa, to supply him with two machines. A week after they were delivered Ben found that both of them were missing a part that, although not essential, was included in the original specification. Nonetheless Ben sold one of them before writing to inform Aldo that, due to the missing part, he was not willing to pay the agreed price for the machines. The agreed price for each machine was Ksh.30, 000/=. Ben informed Aldo that he was only willing to pay Ksh.20, 500/= for each. Aldo responded by saying that he was willing to supply and fit the missing part. From the foregoing;

a) Highlight whether ben met his legal obligations and the whether there is breach of contract from Aldo

b) Advise on the remedies available to ben in respect to the machine he resold (if any) (20 Marks)

QUESTION TWO

Jaden acquired a car on hire purchase terms from Maxland Motors Limited on 12th June 2020. He obtained possession and commenced using the car. However, on conducting a search for the vehicle on the NTSA portal a few days later, he noted that the vehicle was charged to CBC Bank. The hire purchase agreement was presented by Maxland Motors Ltd for registration on 21st September 2020 and subsequently registered. Upon close scrutiny of the registered agreement which her received on 10th October 2020, Jaden noted that the agreement had these clauses: - a) Maxland Motors retains the right to gain access to Jadens premises to repossess the car in case of two months default. b) Maxland Motors is not obliged to sell the vehicle to Jaden at the end of hire purchase period in case of defaulting making any payment.

REQUIRED

a) Jaden has approached you to guide him on the legal issues requiring redress in the above scenario and how to address them. Guide him. (10 Marks)

b) Discuss the implications included in the two clauses in the Hire Purchase agreement and highlight the remedies available to Jaden (if any) (10 Marks)

QUESTION THREE

Kamene hired Chika to transport milk from Nanyuki to Kitale. On his way to Kitale the vehicle had some mechanical issues in a remote are far away. Fearing that the milk would go bad would go bad been unable to immediately contact Kamene, he decided to sell the milk at a market within the remote area he was in. unfortunately the milk did not fetch a good price upon sale. However, upon arrival in Kitale, Kamene refused to pay Chika his commission. Chika is unhappy with this turn of events. From the foregoing, analyze the facts above and discuss the principles applicable therein (10 Marks)