• By mutual agreement-Here both the principal and the agent may agree to terminate the agency at any time they wish.
• By revocation of the agent’s authority; the principal may at any time revoke the authority given to the agent and prevent him from making binding contracts with third parties. When this happens, the agent may have the right of action for breach of contract against the principal where the revocation is unjustified.
• By death of the principal or agent, save in some exceptional cases.
• By bankruptcy or insanity of principal or agent, save in some exceptional cases.
• By frustration
• By intervening illegality like legislation passed to nullify such types of agency.
• By agent completing the performance of the agency;
• By the expiration of time, where the agency was created for a limited time.
• By the principal becoming an alien enemy;
• By renunciation
                                                                                                                                                                                  (Any 5 points)

• Where he agrees to accept personal liability
• When the agent is not appointed by deed and he signs the Deed, he becomes personally liable thereon.
• Where the agent signs a bill of exchange in his own name but does not indicate that he is signing as a mere agent;
• Where trade custom makes the agent personally liable
• Where the supposed agent is the principal but purports to contract as an agent;
• Where an agent acts for an undisclosed principal but does not make it clear that he is acting as an agent.
                                                                                                                                                                                  (Any 5 points)

Per paragraph 14 of IAS 10, a company would not prepare its financial statements on a going concern basis if management determines after the reporting period either that

• it intends to liquidate the company or
• to cease trading or that it has no realistic alternative but to do so.

• In a contract for the sale of unascertained goods, property passes when the goods are ascertained.
• Property in goods when the parties intend it to pass.
• Property in goods passes when the goods are delivered to the buyer
• Where goods are delivered to the buyer on approval, or on sale or return or other similar terms, the property in the goods passes to the buyer when he signifies his approval or acceptance to the seller, or any other act adopting the transaction.
• When the buyer keeps goods sold on approval, or on sale or other similar terms, the property in it then passes when the buyers retains the goods without giving notice of rejection.
• If a time has been fixed for the return of the goods, on the expiration of such time, or after a reasonable time, property passes.
                                                                                                                                                                                  (Any 5 points)

Directors are responsible for the preparation of the financial statements of the company. They are specifically responsible for :

• The preparation of the financial statements of the company in accordance with applicable financial reporting framework. ( eg. IFRSs)
• The internal controls necessary to enable the preparation of financial statements that are free from material misstatement, whether due to error or fraud
• The prevention and detection of fraud

• Right to life
• Right to personal liberty
• Right to human dignity
• Equality and freedom from discrimination
• Privacy and Protection of Property
• Fair trial
• Protection from deprivation of property
                                                                                                                                                                                  (Any 6 points)

The information gives full details of its effect on the financial statements and is only recognised if its financial effects are certain.

Financial reports represents economic phenomena in words and numbers. To be useful, financial information must not only represent only relevant phenomena but must faithfully represent the phenomena that it purports to represent.

To be faithful financial information must be complete, neutral and free from error. A complete reports must include all information necessary for the user to understand, neutral is without bias and finally free from error means there should be no errors or omissions in the report.

The statement, fundamental human rights are inalienable means that the human rights are rights that cannot be transferred or surrendered.

• Court of Appeal to the Supreme Court
• High Court to Court of Appeal,
• Circuit Court to Court of Appeal
• District Court to High Court
                                                                                                                                                                                 Four (4) points