Description

COMMERCIAL LAW

Question One

Jaya is a businessman dealing in the production and sale of high quality timber furniture. Kay a businessman as well is involved in the development of a block of exclusive furnished apartment in Parklands. Kay visits Jaya’s show room and is extremely impressed with the workmanship with which Jaya’s furniture is produced. Kay enters into a contract with Jaya in which Jaya is to supply one sofaset, one coffee table and two beds for each of Kay’s 33 apartments. Jaya is only too glad to enter the arrangements especially in view of the difficult economic times that he has been facing. Give advice to Kay based on Kenyan Law under the following circumstances.

1. Jaya produces the furniture as per the agreement with Kay. On the day prior to transportation of the furniture to the apartments, a fire breaks out at Jaya’s workshop. Everything in the workshop, including what was destined for Kay’s apartment is burnt to the ground. (8 marks)
2. Jaya produces the furniture and informs Kay that the furniture is ready. Kay comes to Jaya’s workshop and confirms that the furniture is truly as exquisite as promised. Kay makes full payment for the furniture and promises to return the following day to collect the furniture. Due to unforeseen delays Kay is not able to come back as promised and returned two weeks latere To Kay’s shock and dismay Kay finds that Jaya has since sold half of the consignment to another customer who has since collected the half. (8 marks)

• Jaya produces the furniture and delivers the consignment to Kay’s premiseso Kay on inspecting the goods finds that they are defective in that the colours used are different and the design is completely different. In addition, of the 33 coffee tables expected, 3 are missing while instead of 33 sofa sets 38 have been delivered. (9 marks)