a$)$ Patrick and his long time partners owned a computer repair business called Compu consult Limited. After two years Patrick was able to get a loan and purchased a vehicle of his choice worth Kshs$.850,000$ which was registered in his name. He approached an insurance company to insure the vehicle. When asked which name he intends to use to insure the vehicle he decided to use Compu consult Limited as he reckoned it will be fuelling his car and taking care of repairs. The vehicle was later involved in an accident and was declared a write$-$off. The Insurer however declined to indemnify Patrick and he sued the insurer. Advise the legal position of both parties $(5$ Marks$)$

b$)$ The Expatriate Limited run the business as promoters of a hotel in Kenya. They entered into a contract on behalf of an organisation to purchase washing machines. When the company formally came into existence it ratified the contract. The machines began to be used but before payment was made, competition was too high with undercutting pricing and the company went into liquidation. The promoters, as agents, were sued on the contract. They argued that liability under the contract had passed, by

ratification, to the company. Argue the case and advise both parties the legal position $(5$ Marks$)$