THIS MODULE IS A CONTINUATION OF BUSINESS LAW 1 AND IS MAINLY BASED ON THE PRINCIPLE CONTRACT

The terms 'business', 'commercial' and 'mercantile' are synonymous. Commercial Law is a branch of General Law. It relates to industry, trade and commerce. It includes law relating to contracts, sale of goods, partnerships, negotiable instruments, companies, co-operative societies etc. Before we analyze all these concepts, it is important for us to try and understand law in general. We need to know what law is and why it is important for one to study it.

This unit aims at introducing you to the general principles of law and its application. in particular the unit discusses how this law relates to the business world.

Purpose of the course: To prepare students for such aspects of law as will touch their business operations so that they can play a practical role in the field of commercial enterprise in the community and nation as a whole.

The course is designed to equip the student with knowledge of business law in corporate and business world. The main objective is to give the student elementary knowledge in business law in relation to needs for law in the society, law of contract and the purpose and importance of the law of contract. The emphasis should be put on law of contract.

The purpose of the course is to examine the candidates’ ability to understand the legal principles relevant to businessmen and knowledge of the basic principles of law. Law creates rules that govern the relationship between the state and private citizens and also citizens themselves. Law is important because it creates certain rights which are fundamental to the maintenance of order in society. Therefore, the essence of this course is to enable the business student acquire some understanding of laws governing business operators, managers, and their customers in business environment.

Mike writes to Peter "I will sell you my car for £ 2,000. If I hear nothing from you before next Saturday, I will take it that you have accepted". Peter does not reply by Saturday.Mike is now threatening to sue Peter for breach of contract to buy the car. Advise Peter.

Business law - is defined as rules that govern business relationships.It is the body of law which governs business activity. It is concerned with the day to day operations of a business e.g. regulations, licenses, contracts, accounting, taxes, etc. It governs the interactions between a business and its third party; - customers, vendors, suppliers, society, etc.

This is a first year Diploma courses in business course which gives the students an exposure to the legal principles that bind transactions that business people engage in. The course first explores the nature of Law and introduces the student to the Kenyan legal system. Further the course explores diverse areas of law that relate to the activities that business people engage in a day to day basis.

‘Law’ means any rule of conduct, standard or pattern, to which actions are required to conform; if not conformed, sanctions are imposed. When we speak of the law of a State, we use the term ‘law’ in a special and strict sense. In this sense, the term ‘law’ is defined in Oxford English Dictionary as “the body of rules whether proceeding from formal enactment or from custom, which a particular State or community recognises as binding on its subjects or members”. These are rules which are recognised and acted on by courts of justice. Law may also be defined as rule of conduct of persons (both natural and artificial), imposed upon and enforced among the members of a given State.