KASNEB CAMS – Introduction to law and ethics Notes

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This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to apply the principles of legal system and business law in various  environments.


A candidate who passes this paper should be able to:

  • Demonstrate knowledge of essential elements of the legal system
  • Demonstrate knowledge of legal personality
  • Apply law of contract and tort in various scenarios
  • Apply general principles of business law in practice.


Elements of the legal system

Nature, purpose and classification of law

  • Meaning of law
  • Nature of law
  • Purpose of law
  • Classification of law
  • Law and morality

Sources of law

  • The Constitution
  • Legislation
  • Substance of common law and doctrines of equity
  • African customary law
  • Islamic law
  • Judicial precedent
  • General rules of international law and ratified treaties

Administrative law

  • Meaning of administrative law
  • Functions of administrative laws
  • Doctrine of separation of powers
  • Principles of natural justice
  • Judicial control of the Executive

The court system

  • Establishment, structure, composition and jurisdiction of courts
  • Supreme Court
  • Court of Appeal
  • High Court
  • Employment and Labour Relations Court
  • Magistrates Court
  • Court Martial
  • Kadhi’s Court

Alternative dispute resolutions

  • Nature of alternative dispute resolutions (ADR)
  • General principles of ADR
  • Mediation
  • Negotiation
  • Conciliation

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Law of persons

  • Natural persons
  • Nationality, citizenship and domicile
  • Artificial person
  • Unincorporated associations
  • Incorporate associations
  • Co-operative societies

Law of tort

  • Nature of tort
  • General defences of tort
  • Negligence
  • Vicarious liability
  • Strict Liability
  • Defamation
  • Limitation of actions

Law of contract

  • Definition of contract
  • Classification of contracts
  • Essentials of a valid contract
  • Terms of a contract
  • Vitiating factors
  • Illegal contracts
  • Discharge of contract
  • Remedies for breach of a contract
  • Limitation of actions

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Sale of goods

  • Nature of the contract
  • Formalities of the contract
  • Terms of the contract
  • Implied terms by statute
  • Rights and duties of the parties
  • Auction sales
  • International contracts of sale: FAS, FOB, CIF, FCA, CPT, CIP, DAT, DAP, DDP, CFR, DAF,DDU, Ex-works and Ex-ship

Hire purchase contracts

  • Nature of the hire purchase contract
  • Difference between hire purchase and conditional sale/credit sale
  • Formalities of the hire purchase contract
  • Implied Terms of the hire purchase contract
  • Rights and duties of the parties
  • Termination and completion of the hire purchase contract


  • Meaning and nature of the agency contract
  • Types of agents
  • Creation of agency
  • Authority of an agent
  • Rights and duties of the parties
  • Termination of agency


  • Nature of partnership
  • Types of partnerships
  • Rights, duties and liabilities of existing, incoming and minor partners
  • Management of partnerships.
  • Dissolution of partnerships and its consequences

Indemnity and guarantees

  • Nature of the contracts
  • Rights and duties of the parties
  • Termination of the contract.
  • Remedies for breach of contract


  • Nature of the contract
  • Formalities of the contract
  • Principles of insurance
  • Types of insurance
  • Termination of the contract

Negotiable instruments

  • Nature and characteristics
  • Negotiability of the instrument
  • Types: cheques, promissory notes, bills of exchange
  • obligations of the parties

The law of property

  • Definition of property
  • Classification of property (real and personal, movable and immovable, tangible and intangible)
  • Property in land: private, public and community land
  • Interests in land: estates, servitudes and encumbrances
  • Intellectual property: plant breeder’s patents, trademarks, copyrights and industrial designs

Emerging issues and trends

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