(a) Outline FOUR circumstances under which an agent may incur personal liability to a third party in an agency transaction.
(b) Three accountants, Hassan Ali, Mercy Wambui and Brian Kibet, operate an unregistered consultancy under the name HMB Advisory. They admit a new person to share profits but do not amend the partnership agreement or notify existing clients of the change.
Advise the partners on THREE legal issues that could arise under partnership law.
(c) Explain FOUR ways in which a letter of credit may support a commercial sales transaction while preserving the independence of the bank undertaking.
(d) Alicent Insurance Ltd. intends to migrate its motor insurance policies to a digital platform and terminate paper-based renewals. Some policyholders live in areas with limited internet access.
Evaluate THREE legal safeguards that the insurer should adopt to ensure policyholders are not unfairly disadvantaged under Kenyan law.
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