LAW OF BUSINESS AND

CARRIAGE
RRU 07422
NATIONAL ISTITUTE OF TRANSPORT (NIT
LEARNING OUTCOMES

At the end of the Course a student should be

able to:
i. Understand the basic legal principles relating to
law of business and carriage and applicable
legislations
ii. Understand the legal principles relating to
contract, sale of goods, bailment, hire purchase,
carriage of goods and agency.
iii. Understand transport dispute resolution
mechanisms
KEY LEGAL DOCUMENTS

 Constitution of the United Republic of Tanzania 1977

 The Law of Contract Act Cap. 345 R.E. 2019

 Sale of Goods Act [Cap 214]

 Hire Purchase Act [Cap. 14]

 Transport Licensing Act [Cap 317]

 Transport Licensing(Public Service Vehicles) Regulations, 2020

 Transport Licensing(Goods Carrying Vehicles) Regulations, 2020

 The Railways Act No. 10 of 2017

 MODULE I
INTRODUCTION TO LAW AND
LEGAL SYSTEM OF TANZANIA
Module Learning outcomes:

 At the end of the Module a student should be

able to:
i. Define the term Law and Business Law
ii. Describe the Nature of Law
iii. Explain the functions of Law
iv. Describe the classification of Law
v. Explain the sources of Law
vi. Identify the legal system of Tanzania
What is Law?
What is Law?

MORALITY
ORDER

JUSTICE
PRINCIPLES
 According to
LAW Blackstone, he
Law is the set of defines law as
rules and “A rule of civil conduct
principles which prescribed by the
regulate human supreme power in the
state, commanding
behaviour in the what is right and
community. prohibiting what is
wrong”
 “Law is the aggregate of
the rules set by men as
political superior or
sovereign to men as
politically subject”
Austin He means that the law is
the command of
sovereign. It imposes a
duty and duty is backed
by a sanction from the
state.
 Defined law as “the body of
principles recognized and
applied by the state in the
administration of justice”

means Law consists of a

John Salmond
series of rules regulating
behaviour, and reflecting, to
some extent, the ideas and
preoccupations of the
society within which it
functions.
 Law is the command of a
sovereign, containing a
John Erskine common rule of life for
his subjects and obliging
them to obedience.
 NATURE OF LAW
 Nature of law presupposes that law is a unique social-
political phenomenon, with more or less universal
characteristics that can be discerned through
philosophical analysis. General jurisprudence, as this
philosophical inquiry about the nature of law is called, is
meant to be universal. It assumes that law possesses
certain features, and it possesses them by its very
nature, or essence, as law, whenever and wherever it
happens to exist. They include:
  Law is a general rule of
human conduct. It does not
specify the names of specific
persons or behaviours. Hence,
its generality is both in
terms of the individuals
governed and in terms of
1. GENERALITY
the social behaviour
controlled.
 The extent of its generality
depends on whom the law is
made to be applicable.
Consider the following
illustrations.
 “Everyone has the
right to life, liberty
and the security of a
person.”

Illistration - This law is made to be

applicable to every
person on this world.
Therefore, it is universal.
 “Whoever intentionally
spreads or transmits a
communicable human
disease is punishable
Illustration with rigorous
imprisonment not
exceeding ten years.”
 The term "normative" refers to
something that establishes or
relates to norms, standards, or
rules of conduct. In the context
of law, it means that legal rules
2. NORMATIVITY
are not merely descriptive
statements about what people
do or have done, but rather
prescriptive statements about
what people should do or
should not do.
 Law does not simply
describe or explain the
human conduct it is made
to control. It is created
with the intention to
create some norms in
the society. Law creates
Law is Normative
norms by allowing,
ordering or prohibiting
the social behaviour. This
shows the normative
feature of the law.
 • A law prohibiting
speeding is a normative
rule, stating that drivers
should not exceed a
certain speed limit.
Examples • A law requiring people to
pay their taxes is a
normative rule, stating
that citizens should fulfil
their tax obligations.
 Permissive laws allow or
permit their subjects
to do the act they
provide. They give right
or option to their subjects
3. Law is whether to act or not to
Permissive/ act. Most of the time
Directive and such laws use phrases
Prohibitive like:
 Directive law orders,
directs or commands
the subject to do the act
provided in the law. It is
not optional. Therefore,
the subject has legal duty
Directive
to do it whether s/he
likes it or not, otherwise,
there is an evil
consequence that s/he
incurs unless s/he does it
as directed by the law.
  Prohibitive law discourages
the subject from doing the
act required not to be
done. If the subject does the
act against the prohibition, an
Prohibitive evil follows as the
consequence of the violation.
All Penal code provisions are
prohibitive laws.
 Each and every member
of a society is required to
follow the law. Where
there is violation the law
sanction would follow.
Sanction according to
4. Sanction Black’s Law Dictionary is
a penalty or coercive
measure that results
from failure to comply
a law.
The main purpose of
sanction is to prompt a
party (a wrong doer) to
respond. In other words,
sanction will make the
wrong doer to think that
s/he made a fault and
s/he should correct it.
FUNCTIONS OF LAW

1. Maintains Social Order and public safety

Without law our society would be chaotic, uncivilized
mess hence Law

✓ Establishing Rules and Regulations:

Law provides a framework of rules and regulations that
govern human behavior, ensuring a predictable and
organized society.
Cont…

✓ Preventing Crime:
Laws deter criminal activity by defining prohibited
actions and establishing penalties for violations.

✓ Protecting Public Safety:

Laws address issues like traffic control, environmental
protection, and public health, ensuring the safety and
well-being of the community.
2. Resolving Disputes and Providing Justice:
✓ Dispute Resolution:
Law provides mechanisms for resolving conflicts and
disputes between individuals, businesses, or the
government.
✓ Enforcing Contracts:
Laws ensure that agreements and contracts are upheld,
promoting fair and reliable business practices.
Cont…

✓ Protecting Rights and Freedoms:

Laws safeguard fundamental human rights and
freedoms, ensuring that individuals are treated fairly
and justly under the law.
3. Promoting Social and Economic Development:
✓ Facilitating Trade and Commerce:
Laws create a stable and predictable legal environment
that encourages economic activity and investment.
✓ Protecting Property Rights:
Laws define and protect property rights, ensuring that
individuals and businesses can freely own and use their
assets.
Cont…

✓ Promoting Social Justice:

Laws can be used to address social inequalities and
promote fairness and equality for all members of
society.
Role of law in Business:-

Law plays an important role in the business

world, when setting a business it is the laws
that determine what type of business it is to
became, and the structure is to be formed.

Also the law sets up a reasonable expectation

on how the business should operate in order
to protect the business owner’s interest and
interests of the Customers.
Cont…

 Law not only allows people to understand what is

expected of them in their personal capacities but also set
forth rules for business so that they, too know what is
expected of them in their dealing and transactions the law
protects those who work for a business. Example rights
and duties of parties to contract, labour Law etc

 In short the laws for business create an honest environment

where consumers and business owners interest can be protected
and we have ways to solve any disputes which may arise. If
these laws are violated it sets up guidelines for punishment or
remedies.
CLASSIFICATION OF LAW

Law can be classified into two main categories

I. International Law, and

II. Municipal or National law

I. International Law

The legal Process that concerns legal relations

among nations is called international law
The major sources of international law are
multilateral Treaties, international custom and
such General Principles as are recognized by
civilized nations
Categories of International Law

Public international law Private international law

 Rules and principles according
 Public international law to which the cases between
is that body of rules individuals having foreign
element are decided.
which govern the  Example, if a contract is made
between an Indian and
conduct and relations Tanzanian and it is to be
performed the rules and
between States principles on which the rights
and liabilities of the Parties
would be determined would be
called Private international
law.
[Link] Law/National Law

Refers to the body of legal rules and principles

that govern a country and its citizens,
encompassing areas like criminal, civil, and
constitutional law, and is enforced by the
country's legal system.
 National law focuses on a country's internal
affairs
 Categories of Municipal Law

Public Law Private Law

 It determines and regulates  This branch of law regulates
the organization and and governs the relations of
functioning of the State and citizens with each other. The
determines the relation of the parties in such cases are
State with the private individuals and the
subject/citizens. State through its judicial
organ adjudicates the
matters in dispute between
 Example Constitutional Law, them.
Administrative Law , Criminal
Law  Example; Law of contract,
Law of Tort(Civil law)
Classification of Law

SUBSTANTIVE LAW PROCEDURAL LAW

Is a law that creates  Is the law that provides

for procedures on
and controls the
enforcing the rights and
rights and duties of
duties under substantive
parties
law.
Take home Snack!

Draw a hierarchical chart showing clearly

the clssification of Law, and in doing so,
show the category under which business
law and carriage fits.
What is Business Law?

This is the law dealing with commercial

transactions between individual persons.
It also refers to the rules and principles
which governs commercial relations
between persons example Contract, sale
of goods, agency, bailment, hire
purchase, partnership company etc.
SOURCES OF LAW(Business Law)

 ”Source of law”

It also, broadly, refers to the power/authority from

which the law derives its validity and include a code
of binding rules that enable any state to govern its
subjects and interactions with other states/organs.
There are several sources of law in Tanzania, namely:
I. CONSTITUTION
THE CONSTITUTION OF UNITED REPUBLIC OF TANZANIA(1977)

A constitution is the basic law of

the land and the most
fundamental source of law. Any
other laws of the country must
conform it.
The principle of constitution
supremacy is that it establish all
organs of the state and any law which
inconsistence with it shall be declared
void- Article 64(5). It is the
foundation of legal framework of the
state.
Cont…

The Constitution provides for

fundamental rights and freedom- article
12 to 24, article 25 to 28 imposes duties
on every individual.
Hence all other laws derives their origin
from the Constitution
[Link]

 Are laws passed by a legislative body/ enacted by a

parliament/ legislature (Principal Legislations) or
those enacted by administrative boards and municipal
authorities. (Subsidiary Legislations)

 Principal Legislations includes, Law of Contract Act,

Sale of Goods Act, Bills of Exchange Act, Fair
Competition Act, Transport Licensing Act, The Road
Traffic Act, The Railways Act etc.
Cont…

Subsidiary legislations such as by-laws, regulations,

rules, directives, orders and etc. are passed by a body
delegated by the Parliament of the URT through an Act
of Parliament. Article 97(5) of CURT
[Link]/CASE LAW

 Case law as a source of law is developed through

decisions made by courts. In other words, it is the law
pronounces by judges while making decisions in
cases. It is also known as judicial precedent. Such
decisions must be made by the superior court here in
the High Court and the Court of Appeal which will
then bind subordinate courts when determining
matters of similar factual situation in future cases.
IV. RECEIVES LAWS

 Is a body of laws that were imposed in Tanganyika during

British colonial rule. They were received by virtue of what
has come to be referred as ‘reception clause’ dated 1st of
January, 1920.

 Received laws are applicable as of today in Tanzania if the

local circumstances permit and courts are mandated to
apply substance of common law, doctrine of equity and
statutes of general application.
V. INTERNATIONAL LAW

 Comprised of rules, regulations or customs that

regulate relation between states.
 In another words it is a body of rules established by
custom or treaty/convention and recognized by
nations as binding in their relations with one another.
 International law may only be applicable in Tanzania if
it has been acceded by the government and then
ratified by the Parliament. Also it may be
domesticated as a legislation or subsidiary legislation.
[Link] LAW
 Body of rules in which rights and duties are acquired
or imposed or established by long usage among
African communities and accepted for having force of
law.
 The applicability of customary law is restricted to
matters of a civil nature only, members from same
society or communities with similar customs.
 Customary rules or laws that are inconsistence with
the Constitution or provisions in Acts of Parliament
are null and void. Tanganyika Order in Council1920
Customary Contract; Mtatiro Mwita v. Mwita
Marianya
[Link] LAW

 In Tanzania, the body of Islamic law is applicable in

matters relating to marriage, divorce, succession and
waqf. In relation to business law, there are emerged
concepts of Islamic banking which originates from
Quran.
 Its Applicability is restricted to matters of a civil
nature only and to members or persons who profess
Islam.
 In case of conflict between Islamic law and state law,
state law shall prevail
VIII. SCHOLARLY WORKS OF PROMINENT
AUTHORS

The works of prominent business law jurists are

also sources of business law, and Courts of law
in Tanzania have, often, sought persuasive
guidance from scholarly works of prominent
authors in resolving business related disputes.
COURT SYSTEM IN TANZANIA
FOR BUSINESSTRANSACTIONS
Court and Court System

What is a Court? What is Court System?

 This refers to the
 This is the body arrangement of courts from
established by law for the lowest court to the
highest court vested with
administration of
different powers in
justice by judges or
administration of justice. This
magistrates. system is often known as
court hierarchy
What is Jurisdiction?

Jurisdiction is the power/ authority of the

court to determine a certain case/ suit.
 Types of Jurisdiction

1. Original Jurisdiction: 2. Appellate Jurisdiction:

This is the power of the This is the power of the
court to entertain a case at court to entertain appeals
the first instance. arising from lower court
Cont…

[Link] Jurisdiction:
[Link] Jurisdiction:
Means more than one Court has Power given to a resident
jurisdiction over the matter. magistrate to hear matters
E.g. Divorce petition can either that would otherwise fall in
be filed in Primary Court, the original jurisdiction of
District Court, Resident
the High Court.
Magistrate Court or High Court;
 Cont…

[Link] jurisdiction: [Link] jurisdiction

It is the power of the Means court's authority to

hear a case is limited by
court to entertain a
the monetary value of the
case within its
claim or subject matter in
geographical limit.
dispute.
 Court System

COURT OF APPEAL
(CAT)

HIGH COURT
(HCT)

RESIDENT
DISTRICT COURT
MAGISTRATE COURT
(DC)
(RM’S)

PRIMARY COURT
(PC)
 Divisions of the High Court
[Link] Court Main Division
[Link] Court Land Division
[Link] Court Labour Division
[Link] Court Commercial Division
It is a court with jurisdiction to entertain proceedings
concerning commercial disputes. It has powers to review
or revise decisions of the subordinate courts, may also
review its own decisions.