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Sale of Goods

Unit: Introduction to Law and Governance

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Practice CPA Introduction to Law and Governance Sale of Goods questions with detailed answers and explanations.

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August 2026

 1 Questions
Question 2
​​(a) Outline FOUR legal capacity issues that should be considered before a trader contracts with a person aged sixteen years, a registered co-operative society and an unregistered welfare group. 
 
(b) At a supermarket in Nakuru, a customer, Daniel Omondi, slips on cooking oil that had been on the floor for over thirty minutes. Staff members had seen the spill but did not clean it or warn customers. 
 
Analyse THREE elements that Daniel Omondi should establish in a negligence claim against the supermarket.         
 
(c) Explain FOUR ways in which information technology might affect the formation and proof of a commercial contract under Kenya law. 
 
(d) Amani Tech Stores sells second-hand laptops through an online platform. The advertisement states that the laptops are "tested and suitable for office use". After delivery, Wanjiru Mwangi discovers that the laptop supplied overheats and cannot run basic accounting software. 
 
Advise Wanjiru Mwangi on THREE implied remedies available under the Sale of Goods Act. 


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April 2026

 1 Questions
Question 2
​​(a) Distinguish between “real property” and “personal property”.     
 
(b) Outline SIX characteristics of a good law. 
 
(c) Enumerate SIX rules governing revocation of an offer. 
 
(d) Edith Atieno ordered 120 cartons of bottled water from Lilo Traders at Sh.1,500 per carton. The seller delivered 140 cartons and demanded payment for all 140 cartons. 
  
 Required: 
(i) Identify TWO options available to the buyer under the Sale of Goods Act where a seller delivers a larger quantity than ordered.  
  
(ii) Summarise TWO remedies available to the seller if the buyer wrongfully refuses to pay for cartons accepted. 


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December 2025

 2 Questions
Question 3
​​(a) In relation to the law of partnerships, explain the following liabilities: 
(i) The liability of retiring partners.  
(ii) The liability of incoming partners.   
(iii) The liability of minors as partners. 
 
(b) Examine FOUR elements of a contract of sale of goods.  
 
(c) Evaluate FIVE differences between a “contract of indemnity” and a “contract of guarantee”. 


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Question 2
​​(a) Explain the following principles as used in insurance law: 
 
(i) Subrogation.  
(ii) Reinsurance. 
(iii) Uberrimae fidei.
 
(b) In relation to corporate governance, describe FOUR roles of board of directors in an organisation. 
 
(c) The Constitution provides that an alien may apply to be a citizen and he/she may be granted a certificate of naturalisation if they fulfill certain conditions.  
 
Highlight FOUR conditions that the alien should fulfill.  
 
(d) In the context of Sale of Goods Act in your country, identify SIX circumstances when the buyer may lose the right to reject the goods.  


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December 2024

 1 Questions
Question 3a
​​With reference to sale of goods, explain TWO circumstances under which a sale by public auction can be revoked.


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August 2024

 2 Questions
Question 3a
​ ​​Explain THREE differences between “conditions” and “warranties”.


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Question 2a
​​With reference to terms used in international trade, explain TWO differences between “FAS” and “FCA.”


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April 2024

 1 Questions
Question 2b
​​Describe FOUR circumstances in which a non-owner of goods could sell them and pass a good title


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December 2023

 3 Questions
Question 3c
​​(i) In relation to sale of goods, explain the meaning of “Transfer of ownership”. 

 (ii) Examine FOUR implications of transfer of ownership.


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Question 5b
​​Describe two responsibilities of the seller under each of the following terms as used in international trade: 

(i) F.O.B. 

(ii) C.I.F.


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Question 5d
​ ​​Maera took a television set from Teleset Ltd. on hire purchase terms. The hire purchase price was Sh.90,000. Maera was then unable to make any further payments after making cumulative payments of Sh.80,000 due to financial constraints. Teleset Ltd. sent its agents to immediately recover the television set from Maera’s house. 

Analyse FOUR consequences of the action taken by Teleset Ltd.


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August 2023

 1 Questions
Question 1a
​​With reference to Sale of Goods Act:

(i) Explain the term "symbolic delivery.

(ii) State THREE options available to a buyer when the seller delivers goods of a larger quantity than ordered.


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April 2023

 1 Questions
Question 1c
​​In relation to the sale of goods, state FIVE forms of delivery


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December 2022

 1 Questions
Question 1c
​​Discuss FOUR ways in which the right to lien as a remedy of unpaid seller might be lost.


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April 2022

 1 Questions
Question 1a
​​With specific reference to the sale of goods law;

(i) Identify three reasons why it is important to determine when property in goods passes.

(ii) List five remedies available to a buyer in a sale of goods contract.


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Pilot December 2021

 2 Questions
Question 7b
​​Distinguish between sale agreement and agreement to sale.


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Question 5c
​​Citing relevant cases, expound the obligation of the credit broker (dealer) in sale of goods act.


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December 2021

 1 Questions
Question 6a
​​With specific reference to international contracts of sale, provide the full name of the following abbreviations:

(i) FAS.

(ii) FOB

(iii) CIF

(iv) FCA

(v) CPT.

(vi) CIP.


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August 2021

 3 Questions
Question 2a
​​Wesley Patel purchased 1,000 kgs of canned fruits from Tunda Tamu Fruits Company Ltd. at a price of Sh.500,000. It was agreed that delivery was to be in boxes containing 50 tins each upon delivery. Some of the boxes supplied contained 30 tins and others 55 tins and Tunda Tamu Fruits Company Ltd. made a delivery of 1,100 kgs of canned fruits. Wesley Patel has received the delivery and feels aggrieved.

Explain to Wesley Patel the legal principles applicable in the above case.


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Question 6b
​​Describe three ways through which a hire purchase contract may be terminated


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Question 4c
​​In relation to the law governing sale of goods:

(i) Define the term "goods"

(ii) Explain four rights of a buyer.

(iii) Discuss three rules governing the passing of risk in a sale of goods contract.


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May 2021

 2 Questions
Question 2b
​​Lilian Pendo walked into a pharmacy and asked Cassandra Kinga, the pharmacist, to supply her with medication that could cure her (Lilian's) sore threat. 

Required: 

(i) Describe five terms that are implied by law in the sale transaction above. 

(ii) Summarise four exceptions to the doctrine of caveat emptor.


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Question 7a
​​Outline five rules that govern the completion of a hire purchase agreement.


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November 2020

 3 Questions
Question 1a
​​Generally, there is no implied condition as to fitness for any particular purpose of the goods supplied. 

Outline four exceptions to the general rule above.


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Question 1b
​Enumerate four duties of the seller under the cost, insurance and freight contracts of sale.


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Question 7b
​​Describe four rules governing the completion of a hire purchase agreement.


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November 2019

 2 Questions
Question 6c
​​Describe two conditions and two warranties that are implied in a hire purchase contract.


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Question 2b
​​In relation to sale of goods: 

(i) Outline four circumstances when a buyer might reject the goods and repudiate the contract. 

(ii) Explain three circumstances under which the unpaid seller might exercise his right of lien.


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May 2019

 1 Questions
Question 5a
​​In the context of sale of goods contract: 

(i) Outline five remedies of the unpaid seller. 

(ii) Explain three ways in which a buyer is deemed to have accepted goods. 

(iii) Define the term "auction sale".


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November 2018

 2 Questions
Question 3a
​​In the context of hire purchase contracts: 

(i) Explain the meaning of a "conditional sale agreement". 

(ii) Describe six features of a conditional sale agreement.


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Question 6c
​​Explain the meaning of the following terms as used in international contracts of sale:

(i) Free Alongside Ship (FAS).

(ii) Free On Board (FOB).


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May 2018

 2 Questions
Question 3a
​​ In relation to the contract of sale of goods: 

(i) Explain three categories of unascertained goods. 

(ii) Explain the meaning of the term "resale". 

(iii) State four circumstances when the unpaid seller might exercise the right of resale.


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Question 6c
​​Under the Hire Purchase Act, certain provisions are deemed void if contained in the hire purchase agreement. 

With reference to the above statement, explain three such provisions.


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November 2017

 2 Questions
Question 3a
​ ​​(i) Explain differences between "hire-purchase sale" and "credit sale"
(ii) Explain duties of the hirer in a hire purchase agreement.


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Question 1a
​ ​​With reference to the Sale of Goods Act, or the equivalent law on the sale of goods in your country:

(i) Explain the meaning of the rule "nemo dat quod non habet"
(ii) Discuss exceptions to the rule in (a)(i) above


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May 2017

 2 Questions
Question 2a
​​With reference to the law on the sale of good:

(1) Highlight two purposes of incoterms.

(ii) Outline three duties of the seller under delivered at place (DAP) contracts of sale.

(iii) Describe five salient features of "price" in a sale of goods contract


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Question 6a
​​Agnes Pure purchased a sewing machine from High Hopes Limited under a hire purchase agreement. High Hopes Limited did not disclose to Agnes Pure that the sewing machine was being let on second hand basis as it had been repossessed from another hirer. Agnes Pure took possession of the sewing machine but on reaching home, she realised that it was not in a working condition. When Agnes Pure read the terms of the hire purchase again, she discovered that High Hopes Limited had exempted themselves from any liability whatsoever.

Analyse the legal principles applicable in the above case and advise Agnes Pure who intends to sue High Hopes Limited.


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November 2016

 2 Questions
Question 4a
​​Discuss five circumstances under which a non-owner of goods might pass a valid title to the buyer in a sale of goods contract.


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Question 6b
​​Identify four legal consequences of non-registration of a hire purchase agreement.


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May 2016

 2 Questions
Question 5a
​​ Discuss four remedies available to a buyer in case a seller breaches a contract of sale of goods.



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Question 5b
​​Distinguish in three ways between a "hire purchase agreement" and a "conditional sale agreement".


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November 2015

 3 Questions
Question 4a
​​With specific reference to sale of goods contract: 

(i) Explain two implied warranties. 

(ii) Identify four essential characteristics of a sale of goods contract.


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Question 5a
​​Identify three consequences of not registering a hire purchase agreement.


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Question 5b
​​Distinguish between" Hire purchase" and "Credit sale".


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Pilot September 2015

 2 Questions
Question 6b
​​ Describe three obligations of a hirer who terminates a hire purchase agreement before payment of the full hire purchase price.


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Question 6a
​​ In relation to sale of goods, explain four rules relating to auction sales.


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