CHINHOYI UNIVERSITY OF TECHNOLOGY

SCHOOL OF ENTREPRENEURSHIP AND BUSINESS SCIENCES

DEPARTMENT OF ACCOUNTING SCIENCES AND FINANCE
 P. Bag 7724, CHINHOYI, ZIMBABWE
 +263 67 22203-5 ext 208
 +263 67 28957
Website:www.cut.ac.zw/home/cut/sob/dept-accounting.php
E-mail: inzero@yahoo.co.uk/inzero@cut.ac.zw.

The Chairperson’s Office

Course Title and Code : COMMERCIAL LAW /BUSINESS LAW

Course Code : CUAC 106/CUAC 211
Course Lecturer : DR. I. NZERO
CONTACT : office: +263 67 22203 (Ext 1313)
Mobile +263 772 745 326
Email: ignzero@yahoo.co.uk/inzero@cut.ac.zw
Office: 10 Block 7

1.0 Time Allocation:

The course is allocated 4 hours per week. Each student also has an additional 1
hour reserved for tutorials per week.

2.0 Rationale
Business organizations play an important role in achieving and stimulating economic
growth in a country. The course is designed to enable students to have a basic
understanding and appreciation of rules of law that govern aspects of modern day
businesses. An understanding of these legal rules provides a framework for making
sound business decisions, facilitates commercial transactions, and promotes order in the
economy. It focuses on the organization and operation of the business legal system, and
the practical application of these rules and constraints to real world situations.
Emphasis is placed on analytical problem solving and ethical decision making. Learners
are expected to be equipped with knowledge and skills in respect of theoretical,
practical and legal dimension of business organisations. Accordingly, this course
intends to introduce to students to legal principles, cases, practices and applications in
the commercial business environment.

4.0 Purpose
The course is intended to introduce and broaden non-law students’ understanding of
basic legal principles and rules that governs the business environment in Zimbabwe.
The course provides a theoretical framework and skills that enables learners to apply
the legal rules and principles to simulated practical problems.

5.0 Learning Outcomes

Upon the successful completion of the course, students should be able to:

 Understand how certain activities of an organization are affected by the law.

 Show and an understanding and appreciation of basic legal principles that apply
to businesses.
 Discuss and analyze legal rules and principles applicable to business.
 Apply legal rules and principles to practical cases.

6.0 Methods of Teaching

Each section of the course outline will be thoroughly discussed (taught), with
comprehensive examples articulated to the students. Students will also be asked
to research in groups and present their answers during lectures where debates
are encouraged and the lecturer will moderate the debates. The following
methods among others will be used:
Lectures
Tutorials
Cases
Discussions

7.0 Students Assessments

7.1Assessment criteria
The final grade will be computed as follows;
Course work 30%
Examination 70%

7.2 Coursework

Students are expected to submit one individual or group assignment on a given topic.
The date of submission will be advised. The assignment is to be submitted on or before
the respective due dates failure of which 5 marks will be deducted for each day the
student(s) will be in default. Only exceptional cases like illness will be entertained if
accompanied by documentary proof from credible authorities.

An in-class test will also be used to assess the students and the date of which will be
advised.

7.3 Examination

At the end of the formal lecturers, students will write a 3 hour examination that will
cover all the material actually taught or where students were required to do some
research. Students are advised to carefully check notices for the examination dates.

7.4 Lecture attendances

Students are strongly advised to attend all lectures since they will be assessed on
material covered in class. Students who miss lectures can expect to struggle in the
exams. Students are also expected to be punctual.

8.0 Course Content

8.1. Introduction to business law

 The meaning and purpose of law in general
 Sources of law in Zimbabwe
 The division of law
 The place of business law within the legal system

8.2. The law of contract

 Introduction and definition
 Requirements for a valid contract –essentialia v naturalia
 Void and voidable contracts
 Offer and acceptance
 Breach of contract and remedies
 Termination / Discharge of a contract

8.3.The law of sale

 The contract of purchase and sale defined
 Essentials of a contract of purchase and sale
 Duties of parties to the contract- the seller and the buyer
 Concept of ownership and passing of risk
 Termination of the contract
 8.4. The law of agency
 Introduction and definition
 Creation of agency
 Types of agents
 Agency authority
 Duties of the agent
 Rights of the agent
 Termination of agency

8.5. Contract of lease

 Introduction and definition
 Essentials of the contract of lease
 Duties of the landlord
 Duties of the tenant
 The “Huur gaat voor koop” principle
 Statutory rules regulating rent- The Rent Regulations
 Termination of the lease

8.6. Principles of Company law

 Forms of business enterprises in general
 Formation of a company
 Features of a company- accompany distinguished
 The concept of legal personality
 Piercing the corporate veil
 Company directors- duties and liabilities
 Winding up of a company
8.7. Law of Partnership
 Partnership as a form of business entity- definition and nature of
 Elements of partnership
 Duties and liabilities of partners
 Dissolution of partnership

8.8. The law of delict

 Delict defined
 Delict distinguished from a crime
 Purpose of the law of delict
 Forms of delict
 Elements of a delict
 Fault liability system

8.9. The law of insolvency

  Introductions and definitions
 Compulsory sequestration
 Voluntary sequestration
 Effects of insolvency
 Rehabilitation

Prescribed reading

There is no prescribed reading material. Students are advised to utilize the reading
provided below as well as case law that will be highlighted in class and discussed in
tutorials.

Recommended reading
1. Abbott, K. & Pendlebury, N. (1993) Business Law. London: Lets Education
2. Bampton, L & Drury, D. (1994) Introduction to Zimbabwean Business Law.
Harare: Legal Resources Foundation
3. Cheeseman, H.R. (2001) Business Law: the legal, ethical, and international
environment Englewood Cliffs, N.J. : Prentice Hall
4. Cheshire, G. Fifoot, C, & Furmston, M. (1999) Law of Contract. London:
Butterworths
5. Christie, R.H. (2001) Business Law in Zimbabwe, Cape Town: Juta
6. Loubser (Ed), Midgley (Ed), Mukheiber, Niesing, Perumal (2010). The Law of
Delict in South Africa Oxford University Press, Cape Town
7. Manase, A.J. & Madhuku, L (1997) A handbook of Commercial Law in
Zimbabwe. Harare: University of Zimbabwe Publications
8. Nkala, J & Nyapadi, T.J. (1995) Company Law in Zimbabwe, Harare: Zimbabwe
Distance Education College
9. Treitel, G.H. (1991) The Law of contract, London: Butterworths
10. Madhuku L Introduction to Law…

11. Gibson J.T.R, South African Mercantile and Company Law, Juta & Co. Ltd

Assignment . (Due date TBA)

On 5 May 2014, Gudo and Tsoko enters into an agreement in terms of which Gudo
sells his motor vehicle to Tsoko. Advise the parties on their legal position in each of
the following separate situations. Refer to relevant authorities where possible.
a). Soon after Tsoko has taken delivery of the vehicle, he discovered that the steering
mechanism is defective. Does he have any remedy against Gudo? Would the position be
any different if the sale has been ‘voetstoots’? [10]

(b). Tsoko cannot afford to pay the purchase price immediately. They agreed that he
will pay the Purchase price on 30 June 2014, at which time he will become owner of the
vehicle. Until then, the vehicle remains with Gudo. On 20 June 2014, the vehicle is stolen
by Tsuro. Is Tsoko still liable for the purchase price? [10]