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Law, 06.03.2021 01:00 sequoyaburke

Ms. Mwikali owns a boutique shop in Nairobi. She has employed Ms. Safi as the shop manager. Ms. Safi has been working as Ms. Mwikali’s shop manager since 2014. In her capacity as the shop manager, Ms. Safi enters into contracts for the sale of clothes in the boutique. One of the loyal customers in Mwikali’s shop is Ms. Karita. On various occasions, she has ordered for clothes and shoes from Ms. Safi. She knows Ms Safi as Mwikali’s shop manager. In the month of December 2020, Ms. Safi sold two dresses worth Kshs. 30,000.00 to Ms. Karita on credit. In the first week of January 2021, a disagreement arose between Ms. Mwikali and Ms. Safi. As a result of this disareement, Ms. Mwikali terminated the services of Ms. Safi. One week later, Ms. Safi approached Ms. Karita for the payment of the two dresses she had bought on credit. Not aware that Ms Safi no longer worked for Ms. Mwikali, Ms. Karita paid Ms. Safi the Kshs. 30,000.00. However, Ms Safi never remitted this money to Ms. Mwikali. In February 2021, when Ms. Mwikali was checking her sales book, she realized that Ms. Safi had sold dresses to Ms. Karita on credit. She called Ms. Karita on the phone and requested her to pay that money. Ms Karita informed Ms. Mwikali that she had paid the money to Ms. Safi in January. Ms Mwikali told Ms Karita that Ms Safi stopped working for her in December 2020. She (Ms Mwikali) insisted that Ms. Karita pays the money. Ms. Karita is not happy about this new development. She has been told that you are an expert in Business Law. She has come to you for advice. Using the law of agency, advise Ms. Karita whether she is liable to pay Ms. Mwikali (15 marks)

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Ms. Mwikali owns a boutique shop in Nairobi. She has employed Ms. Safi as the shop manager. Ms. Safi...

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