BACHELOR OF COMMERCE

BCM 1201: BUSINESS LAW

COURSE OUTLINE AND DELIVERY PLAN

Facilitator(s): Mr. William Agan

Email: wagan@strathmore.edu
Consultation: Anytime through email
Friday, 3.00 to 4.30. at STMB, Floor 4.
Lecture hours: 45
Prerequisite: None
Period: 8th January 2023 to 24th March 2024
Purpose of the Course
To develop knowledge and skills in the understanding of the general legal framework, and of
specific legal areas relating to business law, recognizing the need to seek further specialist legal
advice where necessary.
Intended Learning Outcomes
By the end of this course, participants should be able to:

1. Evaluate the nature of law, jurisprudential schools of thought and the tenets of legal
philosophy. Contrast and compare the different categories of law.
2. Discuss the governance structure of Kenya at both the national and country level
3. and its legal systems.
4. Distinguish and compare the hierarchy of the courts in Kenya within the superior and
subordinate court system.
5. Describe and explain the sources of law comparing the principles applicable to both written
and unwritten source.
6. Explain the concept of juristic persons, the mode through which they are formed and the legal
rules applicable to incorporated and unincorporated business organizations.
7. Critically analyse and explain the legal rules applicable to contracts, torts and agency in a
business environment and the application of the above rules to different case studies.

Course Content

The topics to be covered under this course include nature, function and classification of law that
will explore the definition of the concept of law and the underlying legal philosophy that informs
the definition. The functions and classification of law will be discussed. The additional topics

1
that will be the definition of contract, capacity to enter into a contract, essential elements of a
contract, legal formalities in contracting, terms of a contract, vitiating factors of a contract,
breach and termination of a contract. The law of torts will also be examined in particularly the
legal principles of the law of tort, the tort of negligence with an emphasis on professional
negligence, tort of nuisance, tort of defamation, trespass, occupiers and strict liability. Under the
law of agency the following areas will be discussed: definition of agency, formation of an agency
relationship, types and duties of an agents, duties of a principal and termination of an agency
relationship, sale of goods, negotiable instruments, and business associations –incorporated and
non corporated

Module Outline

Business Law

2
 Week Topic Sub-topics Intended Learning Class Activity
Outcome(s)
Week 1 & 2 Content: Defn of law,Nature Define law and  Lecture and
of law, criminal, nature of law, class discussions
Overview,  Nature and functions civil, public, describe the  Assigned
Introduction to of law private,internation various sources of reading:
Kenya legal  classification of law al, domestic, law, differentiate Ogolla, John
systems & procedureal, the classes of law Joseph Business
 Sources of law
substantive, law (2010) 2nd
Administration
Constituion, Ed Ch 1,2;
of The law in statutes, common Laibuta K.I.
Kenya law, Priciples of
equity,customs, Commercial
precedents Law (2006) 2nd
Edition Ch1;
Husssain Ashiq
General
Principles and
Commercial
Law (2010) Ch
1 &2;
Week 3 and 4 Content: Dfn of person, Define contract, list
The law of artificial, natural, and explain the  Assignment:
Persons and The  Essential elements of corporate, elements of contract, Class
Law of Contract contract associations, trade describe vitiating presentation
 Meaning of contract unions, factors, explain the  Book reading:
partnerships, office various recognised Ogolla, John
 Vitiating factors
of the public person in Kenya, Joseph Business
 Discharge of contract trustee identify rights of law (2010) 2nd
 Remedies etc..Meaning of persons deprived of Ed Ch 3,4;
 Natural persons contract, intention, liberty according to Laibuta K.I.
 Artificial persons capacity, the constitution Principles of
consensus, Commercial
legality, duress, Law (2006) 2nd
mistake, Edition Ch 2,3;
misreperesenstatio Husssain Ashiq
n, breach, General
agreement, Principles and
performance, Commercial
compenasatory Law (2010) Ch
damages, 3,5;
injunction,
rescission
Week 5  Creation of agency Special agent, Define agency, Book reading:
 Types of agents general agent, describe types of Ogolla, John
The law of actual agent, agencies, explain Joseph
Agency & The  Obligations, rights &
ostensible agent, rights, duties, Business law
Law of remedies of parties in authorisation, obligations and (2010) 2nd Ed
Partnership agency subsequent liability of parties Ch 5,6; Laibuta
 Liability of the ratification, right to an agency, K.I. Principles
principal and agent to remuneration, define of Commercial
 Meaning of lien,indemnificatio partnership, Law (2006) 2nd
n by describe the Edition
partnership 3
principal,action in various types of Ch11,12;
 Types of partnerships court as remedy partnerships, Husssain Ashiq
 Creation and against the explain the General
registration of principal,rts of difference Principles and
Course Content & Delivery Plan

Mode of Delivery
Lectures, class discussions, case study discussions, guest lectures, simulation and worked-out
practice examples.
Assessment
The assessment for this unit will constitute continuous assessments and a final exam. The
continuous assessment comprises of sit-in CAT(s), assignments, group work and a term paper.
Marks will be distributed as follows:
Assessment Weighting (%)
Continuous Assessment
 Sit-in, Supervised CAT
30
 Group Assignments
 Individual assignments
Final examination 70
Total 100

Core Reading Materials

1. Ogola, John Joseph (2010). Business Law (2nd Ed). Nairobi: Focus Publishers Ltd.
2. Beatty, J.F. and Samuelson, S.S. (2015) Essentials of business law (5 th Ed) Cengage
Learning. (ISBN 9781285427003)
3. Clarkson, K.W., Miller, R.L., and Cross, F.B. (2014) Business Law: Text and cases:
legal, ethical, global and corporate (13th Ed) South-Western College/West (ISBN 978-
1285185248)
4. Laibuta, K. I. (2006). Principles of Commercial Law. Nairobi: Law Africa Publishers.
5. Adams, Alix (2008). Law for Business Students (5th Ed). New York: Pearson
Longman.
6. Keenan, D & Riches S. (1990). Business Law (2nd Ed). London: Pitman Publishers.
7. Marson, James (2009). Business Law. Oxford: OUP.

Other Recommended Texts and Materials

Other Recommended Texts and Materials

1. Shekhar, K.C., and Shekhar, L.( 2013 ) Banking Theory and Practice: Incorporating
Banking Law and foreign exchange (21st Ed)Vikas Publishing (ISBN9789325969056)
2. Keith Abbot Business Law UK Cengange (2007)
3. Mann, Richard A. Barry Roberts S., Smith & Roberson’s Business Law Thomson
West (2006)
4. Rush Jon, Ottley Michael, Business Law Thomson West
5. World Bank Doing Business 2020 and previous series (2020)

4
Any other lecture materials and case studies issued out in class.
Preview of specific regulation in different jurisdictions:

Research Journals
N/A

Research Articles Reading List

N/A.

Internet Sources
http://kenyalaw.org/kl/index.php?id=8993

Reflection
Ignorance of the law is no defence.

Class Policies
Classes
1. Punctuality is fundamental.
2. Active participation in class discussions is encouraged

Assignments and/or Course Work

1. Plagiarism is a serious offence. If detected in any form in course work and assignments, the
following will apply:
a. In partial or non-serious cases (such as not citing whole word-for-word quotes), half
the total possible marks of the assignment are duly struck off.
b. In serious cases (such as whole duplication of a paper), a zero policy will apply i.e.,
all offending assignments will be awarded a mark of zero.

Note: The level of seriousness referred to above is at the discretion of the lecturer.
Appeals are certainly possible through the relevant channels
2. Referencing: APA System
3. Notwithstanding the above, collaboration in course work is certainly encouraged as this
promotes team spirit and group synergy as long provided originality is preserved.

Communication Channels
Any of the following: E-mail, Pigeon Hole, Module Leader.

Lecturer Information

Mr.William Agan

5
 Executive Fellow
Strathmore University Business School

Contact: wagan@strathmore.edu