DLAW 0223
KISII UNIVERSITY	
UNIVERSITY EXAMINATIONS
	FIRST YEAR EXAMINATION FOR THE AWARD OF 	
THE DIPLOMA IN LAW
SECOND SEMESTER 2024/2025  
(JANUARY –APRIL, 2025)                     

DLAW 0223:   LAW OF BUSINESS ASSOCIATIONS

STREAM:  	 Y1 S2						    TIME:   2 HOURS

DAY: WEDNESDAY, 12.00 – 2.00 P M		             DATE:  23/04/2025

INSTRUCTIONS 
1.	Do not write anything on this Question paper.
2.	Answer Question ONE and any other TWO Questions.
3. Illustrate your answer with relevant cases and statutory provisions 
where applicable.	

QUESTION ONE

Mark, Ruth and Valery are longtime friends from Campus. In one of their random meetings at jesus feet restaurant, Mark introduces an idea of starting a business. Ruth suggests Partnership however, Valery, with no idea about various business vehicles is lost. Explain to Valery the following:
a.	
i)	Types of partners	       (2 marks)
ii)	The essential elements of a partnership	       (8 marks)
b.	Mark prefers company. Explain to Mark why Partnership is better option	     (10 marks)
c.	The group decided to go for partnership. Discuss the various types of Partnerships in Kenya
	     (10marks)

QUESTION TWO
“The greatest contribution attributed to cooperatives in Kenya’s social and economic development has been in the financial sector, where saccos and national financial cooperative organization, cooperative bank and Cooperative Insurance Company (CIC) hold substantial savings portfolio accounting for more than 31 percent of Kenya’s of Kenya’s gross national savings.”
From the excerpt above and your knowledge on Cooperatives,
a.	Giving examples, Explain the various types of cooperatives                                                               (10marks) 
b.	With examples, discuss the roles of Cooperative                                     (10 marks)
QUESTION THREE
Mr. George, a partner in a law firm orders a 100 inch Samsung TV, saying that it is for the Partnership. His fellow partners did not authorize him to make the contract, or make any representation that had authority to make it and they have refused to be bound by it. Citing reasons explain;
a)	Who will be held liable on that contract?	       (5 marks)
b)	In what circumstances will fellow partners be liable for the individual tort of a partner?	   (5 marks)

c)	Highlight ten key difference between a partnership and a company	(10 marks)
QUESTION FOUR
a)	Explain the  circumstances where a Partnership ceases to exist                                                                                          (10marks)
b)	Discuss the rights and duties of a Partner	     (10 marks)
QUESTION FIVE
a)	Write short notes on the following	  (20 marks)

i)	Difference	between	general	partnership	and	limited	liability partnerships.

ii)	Dissolution of an LLP

iii)	The rights and various obligations that accrue the members of a cooperative
iv)	Disadvantages of sole proprietorship.
c.	With examples, Discuss the roles of Cooperative(10 marks)