Explanation

(a)Ways of terminating a contract:

• By agreement: before any of the two parties perform their part of the contract, they may both agree to terminate it.
• By performance: when each party has performed their part of the contract, it is automatically terminated.
• By breach: a contract is terminated if one party fails to perform its part of the contract.
• By frustration: when the performance of a contract by one party is rendered impossible due to factors beyond its control or no contemplated by the two parties e.g. death, ill-health and government legislation
• By lapse of time: a contract is terminated after the period stipulated for it has ended.
• Bankruptcy: a contract can be terminated when either of the parties is declared bankrupt.

(b)Duties of an Agent to his Principal

• The agent must obey all lawful instructions by his principal.
• He has to exercise reasonable care, skill and diligence in performing his duties.
• He must act in good faith and honesty for the benefit of his principal by not competing with him or divulging his secrets.
• He must act personally and not delegate his duties to someone else.
• He must render account of his stewardship to his principal whenever required.
• He must not make any secret gains or commission beyond what is authorised by his principal.
• He must disclose dealings of conflicting interest with the principal so as to obtain permission to carry them out and obtain commission outside what is paid by the principal.

Correct Answer: A. moving an indicator on the screen

Correct Answer: A. to sell

Correct Answer: C. high population growth

Correct Answer: B. ownership was transfered on delivery

Correct Answer: C. the company's property becomes distinguished from that of its members

Correct Answer: C. partnership

Correct Answer: C. public company limited by shares

Correct Answer: C. Mobile shop

Explanation

a Services rendered by Commercial Banks to Customers:

• Acceptance of deposit: commercial banks accept deposits from customers for safe-custody. i.e savings, current and deposits accounts.
• Safekeeping of Valuables: commercial banks keep valuable goods like gold, jewellery, wills, deeds etc on behalf of customers.
• Commercial banks lend money to customers on long and short term basis.
• Agents of payments: it acts as agents of payment for customers. Commercial banks accept and honour cheques drawn on them.
• Issuance of Travellers' cheques: commercial banks issue traveller's cheques to customers who are travelling outside the country.
• Advice to customers: commercial banks give advice to customers on matters that affect their businesses.
• Solving the problem of foreign Exchange: commercial banks help their customers to get foreign exchange
• They Act as Referee: commercial banks act as referees for their customers when their business partners are in doubt about their financial credibility.
• Discounting Bills of Exchange: commercial banks discount bills of exchange that is, they pay cash for bills of exchange before the bills mature.
• Commercial Banks issue bank statements to customers at regular intervals.

(b)Duties of a Customs Authority

• A Customs Authority collects taxes in terms of imports, exports and excise duties on behalf of the government.
• A Customs Authority enforces import and export restriction and prohibition by the government.
• A Customs Authority supervises bonded warehouse where goods whose duties have not been paid are kept.
• A Customs Authority collects data for the compilation of a country’s international trade statistics which gives a picture of a country’s balance of trade and payments.
• Provision of quarantine facilities – it provides appropriate quarantine facilities for the importation of live stocks.
• Completion of documents – the Customs ensure that custom declaration forms and other documents are completed.
• Issuance of Clearance Certificates – it issues clearance certificates for goods whose duties have been paid.