CPA Foundation Level
Introduction to Law and Governance flashcards
Read the question, say the answer to yourself, then turn the card to check. The first 10 of 80 cards are free; the rest come with the subject.
Card 1 of 80
Jump to a card
Complete Flashcard Reference
Review every card in this deck. Open any card to reveal its answer. The first 10 are free; the other 70 come with the subject.
In what order does section 3(1) of the Judicature Act (Cap 8) rank the sources of Kenyan law?
1. The Constitution. 2. All other written law, including Acts of Parliament and delegated legislation. 3. African customary law, so far as applicable and not repugnant to justice and morality. 4. The substance of the common law, the doctrines of equity and the statutes of general application in force in England on 12 August 1897, as qualified by Kenyan circumstances, where no written law or applicable custom covers the point.
What are the three classic grounds of judicial review of administrative action?
Illegality: the decision-maker exceeded the power granted (ultra vires), misunderstood the law, used the power for an improper purpose, or took account of an irrelevant consideration or ignored a relevant one. Irrationality (Wednesbury unreasonableness): a decision so unreasonable that no reasonable decision-maker could have reached it. Procedural impropriety: failing to follow a mandatory procedure, or breaching natural justice. The GCHQ case set out this three-part classification; section 7(2) of the Fair Administrative Action Act, 2015 now lists a longer set of grounds.
Where does an appeal go from the Employment and Labour Relations Court or the Environment and Land Court, and why?
Straight to the Court of Appeal. Both courts are established under Article 162(2) with the status of the High Court, so they do not sit below it. An appeal from them takes the same route as an appeal from the High Court itself.
What must a claimant prove to succeed in negligence, and which case goes with each element?
Duty of care: the neighbour principle (Donoghue v Stevenson). Breach: falling below the objective standard of the reasonable person (Blyth v Birmingham Waterworks; Nettleship v Weston). Causation in fact: the but-for test (Barnett v Chelsea and Kensington Hospital). Remoteness: the damage must be of a reasonably foreseeable kind (The Wagon Mound). Failure on any one element defeats the claim.
What are the essentials of a valid contract?
Offer and acceptance. Consideration from each party (unless the contract is made by deed). Intention to create legal relations. Capacity of the parties. Legality of object and certainty of terms. Any formality the law requires, such as writing for a guarantee or a contract for an interest in land (section 3, Law of Contract Act, Cap 23).
Which terms do sections 14 to 17 of the Sale of Goods Act (Cap 31) imply into a sale?
Section 14, title: a right to sell (a condition), freedom from undisclosed encumbrances and quiet possession (warranties). Section 15, description: the goods correspond with the description (a condition). Section 16, quality and fitness: fit for a purpose the buyer made known in reliance on the seller, and of merchantable quality when bought by description from a dealer (conditions). Section 17, sample: the bulk corresponds with the sample (a condition).
What is the difference between an agent's actual authority and apparent authority?
Actual authority is what the principal in fact conferred, expressly or by implication. It governs the relationship between principal and agent. Apparent authority is what the agent appears to have because of the principal's own representation to the third party. It binds the principal to a third party who relied on it without notice of any private limit (Freeman and Lockyer v Buckhurst Park Properties).
What are the main principles of insurance?
Utmost good faith: disclose every material fact before the contract is made. Insurable interest: the insured must stand to lose by the event. Indemnity: recover the actual loss and no more. Subrogation: the insurer that has paid takes over the insured's rights against a wrongdoer. Contribution: insurers of the same interest share a doubly insured loss. Proximate cause: the insured peril must be the dominant and effective cause. Loss minimisation: act as a prudent uninsured person would.
Into which three classes does Article 61 of the Constitution divide land in Kenya?
Public land (Article 62): held by the national or a county government in trust for the people, such as forests, national parks, roads and unalienated government land. Community land (Article 63): vested in communities, such as ancestral land or land registered in the name of group representatives. Private land (Article 64): registered land held under freehold tenure, land held under leasehold tenure, and any other land an Act of Parliament declares private.
What are the five fundamental principles of the Code of Ethics for Professional Accountants, and the five threats to them?
Principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Threats: self-interest, self-review, advocacy, familiarity and intimidation. The professional identifies and evaluates each threat, then applies safeguards or declines the engagement.
How does law differ from morality?
This answer comes with Introduction to Law and Governance. Buy the subject
Under the doctrine of judicial precedent, which Kenyan court decisions bind which courts?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the two rules of natural justice?
This answer comes with Introduction to Law and Governance. Buy the subject
How is delegated legislation controlled in Kenya?
This answer comes with Introduction to Law and Governance. Buy the subject
What does each prerogative remedy do: certiorari, prohibition, mandamus and habeas corpus?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the composition and jurisdiction of the Supreme Court under Article 163?
This answer comes with Introduction to Law and Governance. Buy the subject
What did the Court of Appeal hold about jurisdiction in the Lillian S case?
This answer comes with Introduction to Law and Governance. Buy the subject
What does the Constitution say about alternative dispute resolution, and what limits does it set?
This answer comes with Introduction to Law and Governance. Buy the subject
On what grounds may a court set aside an arbitral award under the Arbitration Act, 1995?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the difference between a natural person and an artificial person, and which case founds corporate personality?
This answer comes with Introduction to Law and Governance. Buy the subject
When will a court lift the corporate veil, and when will it refuse?
This answer comes with Introduction to Law and Governance. Buy the subject
Which torts are actionable per se, and what does that mean?
This answer comes with Introduction to Law and Governance. Buy the subject
When is an employer vicariously liable for an employee's tort?
This answer comes with Introduction to Law and Governance. Buy the subject
Within what periods must claims in tort be brought in Kenya?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the key rules on offer and acceptance, with a case for each?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the rules on consideration?
This answer comes with Introduction to Law and Governance. Buy the subject
When is a contract frustrated, and when is it not?
This answer comes with Introduction to Law and Governance. Buy the subject
Under section 20 of the Sale of Goods Act, when does property pass if the parties show no other intention?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the nemo dat rule in section 23 of the Sale of Goods Act, and what are its exceptions?
This answer comes with Introduction to Law and Governance. Buy the subject
In what ways can an agency be created?
This answer comes with Introduction to Law and Governance. Buy the subject
What is an agent's liability for breach of warranty of authority?
This answer comes with Introduction to Law and Governance. Buy the subject
How is a partnership defined, and is sharing profits proof of one?
This answer comes with Introduction to Law and Governance. Buy the subject
How far is an incoming partner, and a retiring partner, liable for the firm's debts?
This answer comes with Introduction to Law and Governance. Buy the subject
On dissolution, in what order are the firm's assets applied?
This answer comes with Introduction to Law and Governance. Buy the subject
How does a contract of guarantee differ from a contract of indemnity?
This answer comes with Introduction to Law and Governance. Buy the subject
What events discharge a surety?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the two governing principles of a letter of credit under UCP 600?
This answer comes with Introduction to Law and Governance. Buy the subject
What is insurable interest, and when must it exist?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the difference between subrogation and contribution?
This answer comes with Introduction to Law and Governance. Buy the subject
How does the Bills of Exchange Act (Cap 27) define a bill of exchange, a cheque and a promissory note?
This answer comes with Introduction to Law and Governance. Buy the subject
Who is a holder in due course under section 29, and what is the effect of that status?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the effect of a general crossing, a special crossing and a 'not negotiable' crossing on a cheque?
This answer comes with Introduction to Law and Governance. Buy the subject
Which overriding interests bind a buyer of registered land although the register does not show them?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the steps in transferring registered private land on a sale, and when does the buyer's title arise?
This answer comes with Introduction to Law and Governance. Buy the subject
How is corporate governance defined, and what are its principles?
This answer comes with Introduction to Law and Governance. Buy the subject
How does the Companies Act, 2015 deal with a director's conflict of interest?
This answer comes with Introduction to Law and Governance. Buy the subject
What does each of these cases decide: Percival v Wright, Regal (Hastings) v Gulliver and Foss v Harbottle?
This answer comes with Introduction to Law and Governance. Buy the subject
What sanctions may the Disciplinary Committee impose under the Accountants Act, 2008, and where does an appeal lie?
This answer comes with Introduction to Law and Governance. Buy the subject
When does a professional owe a duty of care to someone who is not their client?
This answer comes with Introduction to Law and Governance. Buy the subject
In what five ways can law be classified, and can one rule fall into several classes at once?
This answer comes with Introduction to Law and Governance. Buy the subject
What effect do Articles 2(5) and 2(6) of the Constitution give to international law in Kenya?
This answer comes with Introduction to Law and Governance. Buy the subject
What does section 4 of the Fair Administrative Action Act, 2015 require of an administrator before a decision likely to affect a person adversely?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the jurisdiction of the Kadhis' Courts, and where does an appeal from them go?
This answer comes with Introduction to Law and Governance. Buy the subject
What are the composition and jurisdiction of the Court of Appeal under Article 164?
This answer comes with Introduction to Law and Governance. Buy the subject
How does a conciliator's role differ from a mediator's, and can the outcome of either become binding?
This answer comes with Introduction to Law and Governance. Buy the subject
What is a dispute review board, and why do its recommendations carry weight even when not binding?
This answer comes with Introduction to Law and Governance. Buy the subject
What did the Supreme Court decide in Nyutu Agrovet Limited v Airtel Networks Kenya Limited [2019] about the finality of arbitration?
This answer comes with Introduction to Law and Governance. Buy the subject
What is domicile, and what are its three kinds?
This answer comes with Introduction to Law and Governance. Buy the subject
Does a society registered under the Societies Act (Cap 108) become a legal person?
This answer comes with Introduction to Law and Governance. Buy the subject
How does a registered co-operative society differ from a company?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the rule in Rylands v Fletcher, and what defences are available to it?
This answer comes with Introduction to Law and Governance. Buy the subject
In what three steps do the courts control an exemption clause?
This answer comes with Introduction to Law and Governance. Buy the subject
What rights does an unpaid seller have against the goods themselves under the Sale of Goods Act?
This answer comes with Introduction to Law and Governance. Buy the subject
Under section 58 of the Sale of Goods Act, when is an auction sale complete, and may the seller bid?
This answer comes with Introduction to Law and Governance. Buy the subject
What duties does an agent owe the principal, and what did Boardman v Phipps decide?
This answer comes with Introduction to Law and Governance. Buy the subject
How is an agency terminated, and when can the principal not revoke it?
This answer comes with Introduction to Law and Governance. Buy the subject
How do a general partnership, a limited partnership and a limited liability partnership differ on the partners' liability?
This answer comes with Introduction to Law and Governance. Buy the subject
Which partnership decisions may a majority of the partners take, and which need every partner's consent?
This answer comes with Introduction to Law and Governance. Buy the subject
What rights does a surety have against the creditor, the principal debtor and any co-sureties?
This answer comes with Introduction to Law and Governance. Buy the subject
When does an indemnifier's liability begin: only once the indemnity holder has paid, or earlier?
This answer comes with Introduction to Law and Governance. Buy the subject
How is a contract of insurance formed, and why can a false answer on the proposal form be so serious?
This answer comes with Introduction to Law and Governance. Buy the subject
In insurance, is the proximate cause of a loss the last event in time? Which case decides the point?
This answer comes with Introduction to Law and Governance. Buy the subject
What is the legal nature of the banker and customer relationship, and when may a bank disclose a customer's affairs?
This answer comes with Introduction to Law and Governance. Buy the subject
After a bill is dishonoured, what must the holder do to keep the right of recourse against the drawer and endorsers?
This answer comes with Introduction to Law and Governance. Buy the subject
How do an easement, a profit a prendre and a restrictive covenant differ?
This answer comes with Introduction to Law and Governance. Buy the subject
Under the Sectional Properties Act, 2020, what does a unit owner hold, and who holds and manages the common property?
This answer comes with Introduction to Law and Governance. Buy the subject
What does the Code of Corporate Governance Practices for Issuers of Securities to the Public, 2015 expect of a listed company's board?
This answer comes with Introduction to Law and Governance. Buy the subject
What is a legal audit, and what are its objects?
This answer comes with Introduction to Law and Governance. Buy the subject
What counts as professional misconduct, and how does it relate to civil or criminal liability?
This answer comes with Introduction to Law and Governance. Buy the subject
What limits apply to an accountant's publicity, and what must they do before taking over another professional's client?
This answer comes with Introduction to Law and Governance. Buy the subject
How to revise with these cards
- Answer out loud or on paper before you turn the card: recalling is what fixes it.
- Go through the deck in short sessions of ten to fifteen minutes, every day.
- Shuffle once you know the order, so you are not answering from memory of the sequence.
- When a card catches you out, read the chapter it links to, then try the topic in a past paper.