QUESTION ONE

Dablo Dhidho Auctioneers knocked down a used Lexus Saloon car to Yanya for the latter's bid of Kshs. 1 Million. It later emerged that the owner and seller of the car, Ms. Magna, had advised the auctioneers, in writing, of a minimum price of Kshs. 1.5 million on the item. The Manager of the auctioneers firm, Mr. Dhidho acknowledges this, but he counters that, two earlier attempts to sell the same car, did not attract any offers close to Kshs. 1 million.

From the above statement;

a)Identify any five (5) types of agents.

b)Discuss the issue of personal liability of the agent, in this case, Dablo Dhidho, with regards to the Law of Agency.

c)Advise Ms. Magna of her possible remedies, if any.

QUESTION TWO

Brian is in the business of buying and selling second hand motor vehicles. The vehicles are usually displayed at a large yard located along Langata Road in Nairobi. Brian also receives and sells cars on behalf of individual owners at a commission. Such cars are usually displayed at the same yard. At around 9:00 a.m. on 1^st May 2017, Alice went to Brian's yard and saw a car which she wanted to buy. The owner of the car, Oscar had left it with Brian with instructions that Brian was to obtain "good offers" but that he (Brian) was not to accept any offers without first consulting with Oscar.

Unfortunately, Oscar had inadvertently left the car's logbook in the car's glove compartment. Using this document, and holding himself out to be Oscar, Brian sold Oscar's car to Alice.

Alice paid the full purchase price in cash. She also obtained from Brian (who was pretending to be Oscar) the car's log book together with a duly executed transfer form. Alice did not, however, drive away the car on the day as she was travelling out of town. On the same day in the afternoon, Oscar came and took away his car, telling Brian that he had changed his mind and was no longer interested in selling it. Upon her return, Alice made several unsuccessful attempts to collect the car from Brian. She has now 'unearthed the truth' but is not sure what to do.

Identify and discuss the legal issues raised by the above pattern and advise each party of their redress, if any.

QUESTION THREE

'The law takes no cognizance of carelessness in the abstract. It concerns itself with carelessness only where there is a duty to take care and where failure in that duty has caused damage. In such circumstances carelessness assumes the legal quality of negligence...' as per Lord Macmillan in the case of Donoghue vs. Stevenson (1932) (97).

With regards to the Law of Tort(s), discuss the above statement.

QUESTION FOUR

Ms. Jane Doe hired Mr. John Doe to transport her goods from Mombasa to Nairobi under a contract signed by both Ms. Jane Doe and Mr. John Doe. Both parties attested in their own handwriting a clause that read 'Goods Carried at Owner's Risk'. Since Mr. John Doe did not have a lorry big enough to transport the goods, he outsourced Mr. Bee Cee to transport the goods using Mr. Bee Cee's lorry. In the course of transit, the lorry overturned causing damages and loss to the goods. Ms. Jane Doe has brought an action against Mr. Bee Cee, claiming damages and the value of goods. In his defence, Mr. Bee Cee argues that he was covered by the clause reading, 'Goods Carried at Owner's Risk'.

a.Advise Mr. John Doe and Mr. Bee Cee as to their legal rights in the dispute with regards to the law of carriage of goods.

b.Advise Ms. Jane Doe of the legal remedies she might possibly seek.

c.Differentiate between a Free on Board (F.O.B) contract and a Cost, Insurance and Freight (C.I.F) contract.