Professional Documents
Culture Documents
Construction Law
Construction Law
Law is defined as rules and regulations imposed by the state or a community aimed to shape the
conduct and characters of individuals and is enforced by imposition of penalties
Characteristics of law
Classifications of law
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STRRUCTURE AND JURISDICTION OF KENYAN COURTS
SUPREME COURT
COURT OF APPEAL
HIGH COURT
MAGITRATE
COURT 3RD CLASS
JURISDICTION OF COURTS
Jurisdiction is the legal power of court to make a decision and judgement to a case
Its of 2 kinds:
1. Original jurisdiction: court power to hear a case and make final decision and judgement without
any appellate review
2. Appellate jurisdiction: is a court power to hear a case and appeal it to another level for the final
judgement
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Research on functions and constituents of Kenyan courts
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Is categorized into 2:
Public nuisance- is the unlawful act or omission which endangers or interferes with
the life, safety or comfort of the public generally eg keeping a brothel, obstruction
of public highway or setting up a factory which emits excessive smoke, fumes, dirt or
noise
Private nuisance- is an unlawful interference with a man’s use of his property or
with health, comfort or convenience. Is categorized into;
Interference with the enjoyment of the property generally
Injuries to servitudes and easement
Defenses to nuisance
Remedies to nuisance
Abatement- it means self-help where by the injured party may stop the
nuisance by removing the cause
Damages- is the ordinary common law remedy where by the plaintiff is
compensated for the incurred as a result for nuisance
Injunction- is a court order to restrain further acts
Defenses to negligence
Remedies to negligence
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Abatement
Injunction
Damages
Imprisonment
It is of 2 classes;
Proof that the statement was defamatory- the statement should be direct
not indirect. Indirect statements are called innuendos
Apology- a defendant in action for libel or slander may plead for an apology
for his action
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Offers of amends- this defense is only available if when the defamatory
statements are published innocently
Remedies of defamation
Injunction
Damages
6. battery tort- is applying a slight force hostilely or against his will e.g
spitting at someone face, removing a chair under him, throwing water to
him or throwing fire wax to someone. This tort is considered to be trivial
and it can only be sued if accompanied by assault
Tort liability
Vicarious liability- here the superior is held liable for action of his juniors
Joint tort feasors- here several tort feasors are held liable for the actions
committed out of their collaboration
Strict liability- here the defendants are held liable for their plan of
committing a tort even if they did not actually commit it
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TOPIC 3: LAW OF CONTRACTS
A contract is legal binding agreement made between two parties where by one party offers something
and the other responds by accepting it. Law of contracts is essential in business and commercial life.
Void contracts- they do not confer any legal right on either party
Voidable contracts- are those which may be made void at the instance of one of the parties. For
example a contract which is induced by fraud can be avoided by the party deceived
Unenforceable contracts- are those which are valid but are not respected by law because of
absence of evidence and form required by law
Enforceable contracts- are valid and respected by law
Offer and acceptance- there must be one party making an offer and the other accepting and with that
the contracts comes into existence
Intention to create legal relations- a contract is intended to have legal consequences eg for commercial
and business relations
Considerations- this means both parties are supposed to benefit from the contract mutually
Contractual capacity- parties to a contract must be in a position to contract. The following are
exceptions of parties that makes a contract void because of their incapability to contract:
Free consent- this means that both parties should agree the same thing in the same sense. Absence of
free consent is induced by:
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ii. Fraudulent misrepresentation- are those statements of facts which the maker knows to be false
(deceit)
Legality of the object- a valid contract must not contravene a statute or common law. A contract can be
made illegal in regard to its performance, consideration or its purpose
Possibility of performance- parties to a contract must have the possibility of performance in terms of
skills, experience, qualifications or have a good history of performance
Termination of a contract
Is the immature end of a contract and mostly happens before acceptance of the offer under a contract.
It is determined by the following factors:
Discharge of a contract
Discharge of contract occurs after acceptance where by both the parties to a contract have tried or fully
met their contractual obligations. A contract can be discharged in the following ways:
Discharge by agreement- here the parties to a contract may come into agreement to release each other
of contractual obligations provided there is mutual consideration at that stage of discharge
Discharge by performance- after each party to a contract have fully completed their obligation under the
contract and nothing remains to be done, the contract is discharged by their performance
Discharge by operation of law- contract can be discharged when there reaches a time the law renders it
unenforceable by the following factors:
Discharge by breach- breach occurs when either of the party repudiates/ refuses or disables to comply
with his/ her contractual obligations. Such breach discharges a contract. Breach of a contract entitles the
injured party to an action to seek for remedies.
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Remedies for breach of a contract
Equitable remedies- are actions rather than a financial award and are often granted when monetary
remedy do not provide adequate resolution. They include:
Refusal of further performance- on breach, the injured party may of his own accord treat the
contract as at end (rescinded) and refuse to perform or fulfill his part of the contract
Specific performance- it is a court order that requires the breaching party to perform their part
of the contract they breached according the original terms
Contract reformation or novation- the court orders the original contract to be rewritten to
reflect the actual intentions of each party in more details
Injunction- the judge can issue an injunction that requires one party to stop doing something
specific because it is causing irreparable harm to the other party and monetary damages cannot
replace or repair the issue
Quantum meruit- is an event in breach of a contract where the injured party may have a claim
other than for damages, claiming for damages of what he has done under the contract
Damages- is a compensatory remedy for the injured party for the losses caused by a breach of a
contract. These damages include:
i. Compensatory/ general damages- are compensations which the jury is entitled to award on
proof that a breach of a contract have been committed
ii. Nominal damages- where a technical breach has occurred and the plaintiff has suffered no real
loss, the court may find for the plaintiff and award a nominal sum to acknowledge his victory of
the case
iii. Liquidated damages- are damages which are ascertained and agreed beforehand by the parties
to a contract. It’s like a contingency plan for future breach
iv. Punitive damages- it’s there to compensate for every loss of time, money or feelings of the
injured party and is normally awarded to prevent further breach
The borrower may approach a friend who may agree to the loan quite freely, making no charge
A borrower may obtain a loan from a stranger who may insist on some form of a security against
payment. This security may be personal i.e a guarantor who undertakes to repay the loan should the
borrower default or the security may be in a form of property against which the lender may lawfully
make a claim should the borrower default in repayment of the debt
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Terms used
Mortgage is the transaction that involve transfer of entitlement of an asset from a creditor to a lender
as a liability to a loan. On repayment of loan plus interest on time stipulated the liability shall be
discharged and the asset shall be transferred back to the borrower.
If the loan is not repaid on the date named in the mortgage deed, the borrower will be deprived
permanently of his asset hence the asset becoming a dead pledge.
Incase of a dead pledge the borrower will be given an agreed addition time to make payment of the loan
on which he complies he will be granted the right to redeem his asset back. This right is known as equity
of redemption
Charge on the contrary simply means that transactions involving proprietary right/ holding of the asset
without transfer of entitlement of asset in acquiring of a loan
mortgage charge
Involves transfer of entitlement of the asset Involves holding of an asset
Suitable for larger loans suitable for small sized loans
There is an equity of redemption No equity of redemption
Mortgage is as a result of the act of the parties Charge is created either by the operation of law
or by the act the parties concerned
Terms are usually fixed Terms are usually infinite
Types of mortgage
Legal mortgage- is the most secure and comprehensive form of security interest whereby it involves the
transfer of legal title to the mortgagee and prevents the mortgagor from dealing with the mortgaged
property while in subject to the mortgage. Its like in a way of a lease
English mortgage- here the lender is entitled absolutely to take possession of the mortgaged property
incase the borrower defaults to make payment
Equitable/ beneficial mortgage- here the mortgagee receives merely equitable interests in the property
Remedies are acquired after a mortgage is in default. Rights and remedies of a mortgagee for
legal mortgage includes the following:
Right to be paid the loan plus interest within the stipulated time
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Right to maintain the mortgaged property
Remedy to sue for the debt on expiration of the redemption date
Remedy to take possession immediately after a dead pledge
Remedy to foreclosure- a foreclosure is a court extinguishing the mortgagor’s equitable right to
redeem the property and vesting the full estate in the mortgagee
Remedy and a right to sell the property after a foreclosure for vesting it has been given
Remedy and a right to appoint a receiver as per the mortgage deed to receive the profits and
interests on his behalf
Right to redeem the property after the liability has been discharged within the stipulated time
Right and remedy for equity of redemption as long as foreclosure has not been given
Right to receive his property in the same condition that was given out after the liability has been
discharged
Ownership: ownership is the exclusive right to use, enjoyment, destruction and disposition to land. This
right has a limit where by if there is any change in the use of the land permission has to be obtained
from the local planning authorities
Possession- is the right for the land usage only. It exists in leaseholds and formerly existed with early
land owners. Whereby in course of time the idea of ownership grew with an advancing industrial and
capitalistic economy and the right to possession changed into right of ownership today
Originally- this was for early land owners where by they occupied land claimed to be for no one but for
wild birds and animals
By succession- here is for beneficiaries under will on death of the previous land owner
Property- according to law it means things owned or those that are capable to be owned
Classification of property
1. Real properties- are freehold interest in land or immovable property attached to land. Real properties
can also be referred to as real estates but real property can include intangible properties unlike real
estates. It’s categorized into 2:
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i. Freehold estates- that involves long term and permanent ownership eg buying a commercial
space or inheriting parents’ home
ii. Non freehold/ leasehold estates- have short term control or use eg renting an apartment or
leasing a business space
2. Personal property- is the collection of items owned that are not attached to land or otherwise fixed in
a permanent location. Eg home furnishings, cars, jewels or other items you can move. Are categorized
into 2 namely:
Tenancy
Estates- are interests granted out of the land possessed or owned. Are categorized into 2:
Lease- is a contractual agreement calling for the lessee/ user to pay the lessor/ owner for the use of the
land within the agreed time for payment
Premium- is the amount paid by the lessor to the lessee for the use of the land
Co-ownership- is the right for two or more people to own a land together. Its of 2 kinds:
Joint ownership- here each individual is the owner of the whole land though the right of
ownership is subject to the right of the other party or parties. Eg for a husband and a wife both
have the same absolute entitlement to the property
Ownership in common- here each individual is regarded as owning an individual share in the
property though not a specific part eg for co-operations, associations etc
Waste- is a term used to mean the damage to a property. Incase of a lease waste should not be
deliberate or permit it to depreciation unreasonably by neglect
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Servitudes- is the right to land that extends to the neighbour’s land. This right is 2 kinds:
Easements- is the right to use and restrict the land of another in some way eg rights of light,
water or right to support buildings or other property
Profits a prendre- is the right to take something from the land of another eg the right to fishing
in another ane’s river, grazing of livestock or collection of firewood
Types of tenancies
Fixed tenancy- here the commencement and the termination are certain. It’s for leasehold properties
Periodic tenancy- is for freehold properties in which its end date is uncertain
Tenancy at will- here the tenant takes possession of the property with the owner’s consent on the
understanding that the term can be brought to an end at any time by either the party giving a notice
Tenancy at sufferance- it comes to existence where on the expiration of the tenancy, a tenant’s holds
over without the landlord’s permission
Tenant’s duties
to pay rent
to pay rates and taxes
covenant to make repairs
to obtain insurance
not to carry out trade or business
not to sign or underlet without consent
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3. Adjudication; is a method of peaceful conflict resolution in which parties present arguments and
evidence to a neutral third party for a decision in their favor according to the established
procedures and rules of law
4. Arbitration; is a procedure in which dispute is submitted by agreement of both parties to one or
more arbitrators who make a binding decision on the dispute
ARBITRATION
Principal characteristics of arbitration
i. Arbitration is consensual: It can only take place if both parties have agreed to it.in the
case of future disputes arising under a contract, the parties insert an arbitration clause
in the relevant contract
ii. The parties choose arbitrators: under the arbitration rules, the parties can select a sole
arbitrator together. If they choose to have a three-member arbitral tribunal, each party
appoints one of the arbitrators.
iii. Arbitration is neutral: In addition of their selection of neutrals of appropriate
nationality, parties are able to choose such important elements as the applicable law,
language and venue of the arbitration. This allows them to ensure no party enjoys a
home court advantage
iv. Arbitration is a confidential procedure: Arbitration rules specifically protects the
confidentiality of its existence, disclosures made during that procedure and the award.
TERMINOLOGIES IN ARBITRATION
Umpire: is another name for an arbitrator or an arbitrator appointed when the original
one does not reach to an agreement.
Arbitration award: Is a determination of merit by arbitration tribunal and is analogous
to a judgement in a court of law
Submission: Is the process by which both parties must sign at the outset of an
arbitration in which they agree to submit to an arbitration under the customer and
industry.
Reference: Terms of reference clarifies the terms of dispute and if the arbitrator is able
to conclude evidence or not.
Cost follows the event: means that the cost in arbitration proceedings shall be paid by
the unsuccessful party to the successful party.
ADVANTAGES OF ARBITRATION
i. Less costly compared to litigation
ii. Easy and quick since it involves less bureaucracies
iii. Proceedings are conducted at the conveniency of parties in terms of venue and language
applicable
iv. Arbitral tribunal is generally free from technicalities that evident in courts
v. Its proceedings are confidential
vi. There is flexibility since the decisions are not bound to the previous one
DISADVANTAGES OF ARBITRATION
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i. Exercises unregulated discretion
ii. Tribunal award cannot be relied upon on other disputes
iii. Proceedings may at time not guarantee justice particularly if the questions are complex and the
arbitrator is not well versed in law
POWERS OF AN ARBITRATOR
Administers oaths
Determines the admissibility of evidence
Demands security from either party
Provides interim relief for remedies where necessary
Determines whether he has the jurisdiction to hear the dispute
Orders for relief on provisional basis
DUTIES OF AN ARBITRATOR
1. Submission: Parties subject to dispute enters into a contract and signs a submission agreement
subject to arbitration rule
2. Reference and appointing of arbitrators: Each party selects arbitrators among people they trust
who prepares supporting evidence upon the claims of the parties
3. Arbitration cost: arbitration fee and administration fee must be paid before the process begins
4. Hearing: Arbitration tribunal hears the case that he examines and analyses
5. Award: Upon arbitral tribunal clarification of the case to the extent being sufficient for material
resolution it issues an award. The award can be set aside by the common court or request the
court to recognize it to ascertain its enforceability impeachment
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