AD12: Introduction to Law and Ethics

AD12: Introduction to Law and Ethics is a Foundation Level paper in the KASNEB Accounting Technician Diploma (ATD) qualification. It equips learners with the fundamental knowledge and practical skills required to understand the legal system, business law, and ethical principles that govern individuals, organizations, and professional practice. The course introduces learners to the sources of law, contracts, business organizations, legal rights and obligations, and professional ethics, enabling them to make informed legal and ethical decisions in business and society.

Key Topics Covered

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 doctrine 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
• General principles of ADR
• Mediation
• Negotiation
• Conciliation

Law of persons

• Natural persons
• Nationality, citizenship and domicile
• Artificial person
• Unincorporated associations
• Incorporated 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 

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 

Agency

• 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

Partnership

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

Insurance

• 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