QUESTION ONE
(a) Discuss when and how the partnership will dissolve in the following instances:
(i)Wesonga and Job were partners in a firm known as “Wesonga and Job partners.”
On 30th December 2011, Job sent a written notice to Wesonga indicating his
intention to have the partnership dissolved. Wesonga received the notice on 6th
January 2012. Unfortunately Job had passed on on 30th December 2011, a few
minutes after sending the notice.(5 marks)
(ii)Eric and Kevin are partners under an agreement which provides for termination by
“mutual agreement only.” Eric sent a notice of termination of the partnership to
Kevin and the notice is promptly received by Kevin. (5 marks)
(iii) Mbalilwa and Winnie are partners in a mining firm under an agreement which
provides that the partnership must remain in existence for not less than 5 years,
subsequent to which partners will review their agreement. Due to a slump in the
economy, the firm incurs losses for eight (8) consecutive months, but the partners
envision a shift in this trend as the mining business has started picking up slowly
one more time. Three years after the commencement of the partnership, the
Government passes a law stipulating that mining business may only be carried on
by companies registered under the Companies Act.(5 marks)
(b) In relation to the principles of co-operation, what are the main advantages of a co operative enterprise over other business enterprises? (15 marks)
QUESTION TWO
Trace the historical origins and development of the co-operative movement in Kenya from the
dawn of colonization to the present, clearly pointing out the factors that stimulated the
development and the context in which those factors recognized the co-operative principles of
co-operation (20 marks)
(a) Discuss when and how the partnership will dissolve in the following instances:
(i)Wesonga and Job were partners in a firm known as “Wesonga and Job partners.”
On 30th December 2011, Job sent a written notice to Wesonga indicating his
intention to have the partnership dissolved. Wesonga received the notice on 6th
January 2012. Unfortunately Job had passed on on 30th December 2011, a few
minutes after sending the notice.(5 marks)
(ii)Eric and Kevin are partners under an agreement which provides for termination by
“mutual agreement only.” Eric sent a notice of termination of the partnership to
Kevin and the notice is promptly received by Kevin. (5 marks)
(iii) Mbalilwa and Winnie are partners in a mining firm under an agreement which
provides that the partnership must remain in existence for not less than 5 years,
subsequent to which partners will review their agreement. Due to a slump in the
economy, the firm incurs losses for eight (8) consecutive months, but the partners
envision a shift in this trend as the mining business has started picking up slowly
one more time. Three years after the commencement of the partnership, the
Government passes a law stipulating that mining business may only be carried on
by companies registered under the Companies Act.(5 marks)
(b) In relation to the principles of co-operation, what are the main advantages of a co operative enterprise over other business enterprises? (15 marks)
QUESTION TWO
Trace the historical origins and development of the co-operative movement in Kenya from the
dawn of colonization to the present, clearly pointing out the factors that stimulated the
development and the context in which those factors recognized the co-operative principles of
co-operation (20 marks)
QUESTION THREE
“Although the right to participate in the profits may be enough indication of partnership, the
determination of whether or not a partnership relationship exists must depend on the real
intention of the parties.” Anonymous
Critically evaluate the above statement in the light of the provisions of section 4 of the
Partnerships Act, Chapter 29 of the Laws of Kenya. (20 marks)
QUESTION FOUR
“A co-operative society shall not be dissolved or wound up save by an order of the
Commissioner,” Section 61(5) of the Co-operative Societies Act, 1997.
In the light of any relevant principles of co-operation, discuss the meaning and implications of
the foregoing excerpt in relation to the dissolution of co-operative societies within the
framework of the Co-operative Societies Act, 1997. (20 marks)
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