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COMMERCIAL LAW

1. (a) Sarah purchased a fridge worth Kshs.40,000 on Wednesday from Fair

Supermarkets Ltd and paid the price in full. The subject fridge was marked as “sold”

Unable to transport it on the day she purchased it, she promised to take delivery of the fridge on Friday. Unfortunately on the night of Thursday a fire broke out in the supermarket and all the property therein was destroyed. Sarah contemplates suing the supermarket.

(i) Advise Sarah on her probability of success in such a suit.

(5 marks)

(ii) Elaborate to Sarah FIVE rules as envisaged under S.20 of the Sale of Goods Act, that are employed to determine when property in goods passes from seller to the buyer.

(10 marks)

• The concept of transfer of property in goods is a significant one. Highlight the significance of this concept.

(4 marks)

• The rule at common law was nemo dat quod non habet.

Explain the meaning of this legal maxim.

(2 marks) (ii)          Highlight four (4) exceptions to the rule above.

(4 marks)