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115+ Free ATP 108 Practice Questions

Pass your Kenya KSL Advocates Training Programme — Commercial Transactions (ATP 108) exam on the first try — instant access, no signup required.

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Key Facts: ATP 108 Exam

ATP 108

Commercial Transactions Unit Code

Kenya School of Law ATP Syllabus

66+ hours

Scheduled Contact Hours

KSL ATP 108 Course Outline

3 components

Project, Oral, and Written Assessment

KSL ATP 108 Course Outline

Cap 31

Sale of Goods Act (Kenya)

Kenya Law

2015

Companies Act (Current Kenyan Companies Legislation)

Kenya Law

100 questions

Free Practice MCQs on OpenExamPrep

OpenExamPrep

ATP 108 Commercial Transactions at the Kenya School of Law trains advocates in Kenyan commercial law across sale of goods, agency, partnership, company law, banking, insurance, and secured transactions. Assessment includes project work, oral examination, and a written paper. This free bank offers 100 MCQs aligned to the 2026 ATP syllabus.

Sample ATP 108 Practice Questions

Try these sample questions to test your ATP 108 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 115+ question experience with AI tutoring.

1Under the Sale of Goods Act (Cap 31) of Kenya, a contract of sale of goods is best defined as:
A.An agreement whereby the seller transfers or agrees to transfer property in goods to the buyer for a money consideration called the price
B.Any agreement under which goods are lent to a buyer for a fixed period with an option to purchase
C.A contract where services are performed in exchange for goods rather than money
D.An arrangement where possession of goods is transferred without any intention to pass title
Explanation: Section 3 of the Sale of Goods Act (Cap 31) defines a contract of sale as one where the seller transfers or agrees to transfer property in goods to the buyer for a money price. This is the foundational concept for all sale-of-goods analysis in Kenyan commercial law.
2In a contract for the sale of specific goods in a deliverable state, when does property in the goods pass to the buyer under the Sale of Goods Act (Cap 31)?
A.When the contract is made, unless a different intention appears from the terms or circumstances
B.Only when the buyer has paid the full purchase price in cash
C.When the goods are physically delivered to the buyer's premises
D.At the end of the credit period agreed between the parties
Explanation: For an unconditional contract for specific goods in a deliverable state, section 20 of the Sale of Goods Act provides that property passes when the contract is made unless the parties show a different intention. Payment and delivery are separate obligations from the passing of title.
3A buyer purchases a machine by description from a dealer. The machine supplied does not match the description in the contract. Which implied term is most directly breached?
A.The condition that goods sold by description will correspond with the description
B.The warranty that the seller has quiet possession of the goods
C.The condition that the buyer will accept delivery within a reasonable time
D.The warranty that the goods are free from any charge in favour of third parties
Explanation: Section 15 of the Sale of Goods Act implies a condition that goods sold by description correspond with that description. A failure to match the contractual description gives the buyer remedies for breach of condition.
4Which of the following transactions is NOT a contract of sale of goods within the meaning of the Sale of Goods Act (Cap 31)?
A.A contract of barter where goods are exchanged for other goods without any money price
B.A contract under which the seller agrees to transfer ownership of furniture for a stated cash price
C.A contract for the sale of unascertained goods from an identified bulk stock
D.A contract for the sale of future goods to be manufactured for the buyer
Explanation: The Sale of Goods Act applies to contracts where goods are sold for a money consideration called the price. Pure barter or exchange without a money price is outside the Act, though it may be governed by general contract law.
5Risk of accidental loss of goods sold prima facie passes to the buyer when:
A.Property in the goods passes to the buyer, unless otherwise agreed
B.The seller issues an invoice to the buyer
C.The buyer inspects the goods at the seller's warehouse
D.The contract is signed by both parties regardless of delivery or property rules
Explanation: Unless otherwise agreed, risk prima facie passes with property under the Sale of Goods Act. This links the burden of accidental loss to the owner of the goods, subject to party agreement or trade usage.
6Under a CIF contract in international sale of goods practice, the seller's core obligation includes:
A.Shipping the goods, procuring marine insurance, and providing shipping documents enabling the buyer to obtain delivery
B.Delivering the goods physically to the buyer's warehouse in Kenya before payment
C.Paying import duty and VAT at the Kenyan port of entry on behalf of the buyer
D.Obtaining a letter of credit from the buyer's bank before loading the goods
Explanation: In a Cost, Insurance and Freight (CIF) contract the seller arranges carriage and insurance and tenders proper shipping documents. The buyer typically assumes risk after shipment, while price includes cost, insurance, and freight to the named port.
7A buyer rightfully rejects goods for breach of condition and has already paid the price. A primary remedy available under the Sale of Goods Act is:
A.Repudiation of the contract and recovery of the price paid
B.Automatic conversion of the breach into a warranty that cannot be rejected
C.Compulsory acceptance with a mandatory 10 per cent price reduction
D.Permanent forfeiture of the price to the seller as liquidated damages
Explanation: Where the buyer lawfully rejects goods for breach of condition, the contract may be treated as repudiated and the buyer may recover the price and claim damages. Rejection preserves the buyer's remedies for fundamental breach of an implied condition.
8Goods are sold by sample and the bulk delivered does not correspond with the sample in quality. Which provision of the Sale of Goods Act is most directly engaged?
A.The implied condition that the bulk will correspond with the sample in quality
B.The implied warranty that the seller will deliver within thirty days
C.The condition that the price will be paid in United States dollars
D.The warranty that the buyer holds a trade licence
Explanation: Section 17 of the Sale of Goods Act implies that in a sale by sample, the bulk will correspond with the sample in quality and the buyer will have a reasonable opportunity to compare bulk with sample.
9An unpaid seller who has retained possession of goods sold may exercise a lien over the goods when:
A.The seller is in possession and the price is unpaid or tendered, including where the buyer is insolvent
B.The buyer has taken delivery and removed the goods to a third-party warehouse
C.The contract is for services and not for the sale of goods
D.The seller has transferred the bill of lading to the buyer's bank
Explanation: Under section 41 of the Sale of Goods Act (Part V, Rights of Unpaid Seller Against the Goods), an unpaid seller in possession may retain goods until payment or tender of the price where the goods were sold without a stipulation as to credit, the credit term has expired, or the buyer becomes insolvent. Possession is essential to the lien.
10In a sale of unascertained goods, property passes to the buyer when:
A.The goods are ascertained by the parties' agreement or appropriation to the contract
B.The buyer first views the seller's entire inventory
C.The seller advertises the goods in a national newspaper
D.The contract is concluded orally without any further act
Explanation: For unascertained goods, property passes when goods are ascertained or unconditionally appropriated to the contract with the buyer's assent, express or implied, under the Sale of Goods Act.

About the ATP 108 Exam

ATP 108 Commercial Transactions is a core unit of the Kenya School of Law Advocates Training Programme. The course equips trainee advocates with practical skills in Kenyan commercial law, including sale of goods, agency, partnership, company transactions, banking, insurance, secured transactions, mergers and acquisitions, insolvency, and commercial document drafting. Assessment comprises project work, oral examination, and a final written examination. This free practice bank reformats the syllabus into 100 multiple-choice items for efficient revision.

Questions

100 scored questions

Time Limit

Project work, oral examination, and final written paper across the ATP academic year

Passing Score

Competency-based; satisfactory performance in all ATP 108 assessment components

Exam Fee

Included in KSL Advocates Training Programme tuition and fees (Kenya School of Law, Advocates Training Programme)

ATP 108 Exam Content Outline

~12%

Sale of Goods

Sale of Goods Act (Cap 31), implied terms, property and risk, international trade terms, and remedies

~10%

Commercial Agreements

Drafting commercial contracts, construction of terms, breach, and distinguishing related transaction types

~10%

Agency

Authority, duties, third-party liability, ratification, and termination of agency relationships

~10%

Partnership Law

Partnership Act formation, partner rights and duties, admission, retirement, and dissolution

~16%

Company Law & Transactions

Companies Act 2015, corporate governance, M&A, restructuring, and insolvency procedures

~10%

Banking Law

Banking Act framework, loan agreements, guarantees, and letters of credit

~10%

Insurance Law

Insurance contract principles, policy types, and Insurance Act regulatory requirements

~10%

Secured Transactions

Movable property security, Chattels Transfer Act, Hire Purchase Act, and perfection of security interests

~12%

Commercial Practice

Document processing, due diligence, tax awareness, auction sales, and advocate practice skills

How to Pass the ATP 108 Exam

What You Need to Know

  • Passing score: Competency-based; satisfactory performance in all ATP 108 assessment components
  • Exam length: 100 questions
  • Time limit: Project work, oral examination, and final written paper across the ATP academic year
  • Exam fee: Included in KSL Advocates Training Programme tuition and fees

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ATP 108 Study Tips from Top Performers

1Read the Sale of Goods Act (Cap 31) sections on implied terms and remedies before attempting sale-of-goods scenarios.
2Distinguish partnership from company structures — liability, personality, and registration requirements differ fundamentally.
3Memorise the core insurance principles: insurable interest, utmost good faith, indemnity, and subrogation.
4Study Companies Act 2015 provisions on directors' duties, meetings, and insolvency alongside corporate transaction structures.
5Practice drafting clauses for loan security, guarantees, and hire-purchase agreements under Kenyan secured-transactions law.
6Review KSL project-work scenarios that combine multiple modules, such as a financed sale of goods with banking security.
7Use this MCQ bank for timed mixed-topic drills in the weeks before the oral and written assessments.

Frequently Asked Questions

What is ATP 108 Commercial Transactions?

ATP 108 is a Kenya School of Law Advocates Training Programme unit that teaches trainee advocates the practical law and procedure of commercial transactions under Kenyan law, including sale of goods, agency, partnership, company law, banking, insurance, and secured transactions.

Who administers ATP 108?

ATP 108 is administered by the Kenya School of Law as part of the Advocates Training Programme under the oversight of the Council of Legal Education.

How is ATP 108 assessed?

Assessment typically comprises project work, an oral examination, and a final written examination. Candidates must demonstrate competency across the commercial transactions syllabus.

Which statutes are central to ATP 108?

Key statutes include the Sale of Goods Act (Cap 31), Partnership Act, Companies Act 2015, Banking Act, Insurance Act, Chattels Transfer Act (Cap 28), Hire Purchase Act (Cap 507), and the Movable Property Security Rights Act 2017, among others referenced in the KSL course outline.

How many practice questions are available?

This free practice bank contains 100 multiple-choice questions spanning all major ATP 108 topic areas, with explanations for every answer choice.

Is ATP 108 part of the bar admission process?

Yes. Successful completion of ATP 108 and the other required ATP units is part of the training pathway toward admission to the Roll of Advocates in Kenya.

Does this practice test use the same format as the official exam?

The official ATP 108 assessment uses project work, oral examination, and written questions. This practice bank reformats the syllabus content into multiple-choice items for efficient self-testing and revision.

What related ATP units should I study alongside ATP 108?

ATP 107 Conveyancing, ATP 103 Legal Writing and Drafting, and ATP 106 Legal Practice Management complement the commercial transactions skills taught in ATP 108.