December 8, 2022

This refers to new issues that are coming up as far as economic issues are concerned. Use of advanced technology-computers which have come up with new changes ranging from less paper work and many people are unemployed. E-Commerce E-Government-Application of advanced ICT to deliver government services E-procurement  NB Outsourcing- It is management strategy by which an organization outsources major non-core functions to specialized, efficient service providers. The basic objective is normally cost reduction and concentration on core activities. Benefit of outsourcing Time management Reduced staff costs Increased flexibility Cost certainty Reduction in staff management problems Improved consistency of service Reduced capital requirements Reduced risk  Problems of outsourcing Redundancy costs Quality of service maintenance problems Long term commitment absent Over dependence on suppliers Lack of suppliers flexibility Lack of management skills to control suppliers Possible loss of competitive advantage particularly in the loss of skills and expertise of staff Insufficient internal investment and the passing of knowledge and expertise to the supplier who may sieve the initiative. Emergence of automatic teller machines. Emergence of mobile banks. Emergence of customer care services department to handle financial matters only. Emergence of m banking Globalization-This is interaction and integration among people, companies and governments of different nations. It is a process whereby different systems and parts of a related trade, function as a closely-knit system at the international level. Communication and transport have vastly improved and affects many aspects of economics from competition policy to monetary policy and agricultural policy. Mergers and joint ventures of institutions so as to increase the institutions capital base. Drug abuse menace. Pollution-air, water, noise and solid waste due to drastic economic changes. Environmental Corruption. Depletion of natural resources. Rogue economics-recent credit crisis shows how financial deregulation and globalization has contributed to many new problems which leave economies vulnerable to financial speculation. Pressure on commodities-the world is used to dealing with a situation of abundant supply of raw materials, but diminishing supply and growing demand threatens to change that. Oil prices are rising due to speculation and due to fact demand is simply rising faster than supply. Shifting balance of global economy-in post war period, US economy was dominant. The old phrase when America sneezes, the rest of the world catches a cold was very much appropriate. Sleeping giants have risen. Dealing with commodity shortages there is the introduction of government quotas, tariffs, protectionism etc. Growth of china economies. HIV aids menace. Emergence of consumerism movements-this is an organized movement of citizens and government agencies to improve the rights and power of buyers in relation to sellers Destruction of environment e.g. lumbering, desertification etc. Emergence of fraudsters who produce counter fake products. Emergence of environmentalism movement-this is an organized movement of concerned citizens and government agencies to protect and improve people’s current and future living environment. Liberalization-this is removal of trade barriers-i.e. free trade. Regional economic integration- e.g. EAC, COMESA, PTA boundaries become irrelevant. Emergence of export processing zones-this are areas set aside by government where industries can set up firms to process goods for export at little or no charge. Enactment of new government policies ranging from quotas, rules, regulations and law enactment e.g. media bill, mututho law, traffic law and tobacco bill. Establishment of National Employment Authority(NEA) to address the issue of unemployment in Kenya Infrastructural advancement-Red lines in Thika super highway to usher in Bus Rapid Transit System, Direct flights to US( A major milestone) Crafting of National Addressing System to assist in dissemination of information. Emergence of drones in Rwanda to supply drugs in interior areas. Business Ethics 1. Ethics: this is a set of moral principal that govern the action of an individual or group Social Responsibility Refers to the roles undertaken by business organization on the surrounding environment   APPROACHES TO MANAGE EMERGING TRENDS AND ISSUES. Restriction of lending capacity of money to citizens, challenge-increases money supply in economy. Huge taxation-challenge-increased demand of level of goods. Control imports-challenge-imported inflation. Rationing of foreign exchange-challenge-imported inflation. Control exports-challenge-shortage of domestic market product

A government Refers to the way of ruling, administering and controlling people. A government can also be defined as; A political organization, structure and authority. A central government is the government that is a controlling power over a unitary state. Another type of distinct but sovereign political entity is a federal government, which may have distinct powers at various levels of government, authorized or delegated to it by the federation and mutually agreed upon by each of the federated states. Though inappropriate, the adjective “central” is also sometimes used to describe the government of a federation. The structure of central governments vary. Many countries have created autonomous regions by delegating powers from the central government to governments on sub-national level, such as regional, state, provincial, local and other instances. Based on a broad definition of a basic political system, there are two or more levels of government that exist within an established territory and government through common institutions with overlapping or shared powers as prescribed by a constitution or other law.   TYPES OF GOVERNMENTS   Democracy Democracy is a form of government that allows the people to choose leadership. The primary goal is to govern through fair representation and prevent abuses of power. The result is a system that requires discourse, debate, and compromise to satisfy the broadest possible number of public interests, leading to majority rule. Democracies advocate for fair and free elections, civic participation, human rights protections, and law and order. Communism Communism is a centralized form of government led by a single party that is often authoritarian in its rule. Inspired by German philosopher Karl Marx, communist states replace private property and a profit-based economy with public ownership and communal control of economic production, such as labor, capital goods, and natural resources. Citizens are part of a classless society that distributes goods and services as needed. Socialism Socialism is a system that encourages cooperation rather than competition among citizens. Citizens communally own the means of production and distribution of goods and services, while a centralized government manages it. Each person benefits from and contributes to the system according to their needs and ability. Oligarchy Oligarchies are governments in which a collection of individuals rules over a nation. A specific set of qualities, such as wealth, heredity, and race, are used to give a small group of people power. Oligarchies often have authoritative rulers and an absence of democratic practices or individual rights. Aristocracy Aristocracy refers to a government form in which a small, elite ruling class — the aristocrats — have power over those in lower socioeconomic strata. Members of the aristocracy are usually chosen based on their education, upbringing, and genetic or family history. Aristocracies often connect wealth and ethnicity with both the ability and right to rule. Monarchy Monarchy is a power system that appoints a person as head of state for life or until abdication. Authority traditionally passes down through a succession line related to one’s bloodline and birth order within the ruling royal family, often limited by gender. There are two types of monarchies: constitutional and absolute. Constitutional monarchies limit the monarch’s power as outlined in a constitution, while absolute monarchies give a monarch unlimited power. Theocracy Theocracy refers to a form of government in which a specific religious ideology determines the leadership, laws, and customs. In many instances, there is little to no distinction between scriptural laws and legal codes. Likewise, religious clergy will typically occupy leadership roles, sometimes including the highest office in the nation. Colonialism Colonialism is a form of government in which a nation extends its sovereignty over other territories. In other words, it involves the expansion of a nation’s rule beyond its borders. Colonialism often leads to ruling over indigenous populations and exploiting resources. The colonizer typically installs its economy, culture, religious order, and government form to strengthen its authority. Totalitarianism Totalitarianism is an authoritarian form of government in which the ruling party recognizes no limitations whatsoever on its power, including in its citizens’ lives or rights. A single figure often holds power and maintains authority through widespread surveillance, control over mass media, intimidating demonstrations of paramilitary or police power, and suppression of protest, activism, or political opposition. Military Dictatorship A military dictatorship is a nation ruled by a single authority with absolute power and no democratic process. The head of state typically comes to power in a time of upheavals, such as high unemployment rates or civil unrest. They usually lead the nation’s armed forces, using it to establish their brand of law and order and suppress the people’s rights. Dictators dismiss due process, civil liberties, or political freedoms. Dissent or political opposition can be dangerous or even deadly for the country’s citizens. TRIBUNALS Tribunals are bodies established by Acts of Parliament to exercise judicial or quasi-judicial functions. They supplement ordinary courts in the administration of justice. Tribunals, however, do not have penal jurisdiction.Tribunals, like the courts, have to respect the Bill of Rights in their decisions and not be repugnant to justice and morality or be inconsistent with the Constitution or other laws of the land. Most tribunals are subject to the supervision of the High Court.   LIST OF TRIBUNALS IN KENYA Political Parties Disputes Tribunal – PPDT. The National Environment Tribunal. Sports Disputes Tribunal. Cooperative Tribunal. Auctioneers Licensing Board. Water Appeals Board. HIV and AIDS Tribunal. Public Private Partnership Petition Committee. INQUIRIES IN KENYA Commissions of inquiry have been defined as ad hoc advisory bodies set up by the government to obtain information. In their working they are expected to make an assessment of the facts and later recommendations to the government in power. The government can accept or ignore the recommendations The purpose of this audit is six fold: To assess the public interest arguments that have been used to justify establishing commissions of inquiry; To determine how effective commissions of inquiries have been in answering the issues before them and making implement able recommendations; To audit the extent to which government has implemented recommendations made by commissions, task forces and probes;

Delegated legislation is also referred to as subsidiary (subordinate legislation). It is Law made by parliament indirectly. Delegated legislation consists of rules, orders, regulations, notices, proclamations e.t.c. made by subordinate but competent bodies’ e.g. Local Authorities Professional bodies such as ICPA(K) Statutory boards Government ministers These bodies make the laws in exercise of delegated legislative power conferred upon them by parliament through an Enabling or Parent Act. Delegated legislation takes various forms e.g. Local Authorities make by-laws applicable within their administrative area Government ministries, professional bodies and others make rules, orders, regulations, notices e.t.c. Characteristics of delegated legislation All delegated legislation is made under the express authority of an Act of Parliament. Unless otherwise provided, delegated legislation must be published in the Kenya Gazette before coming into force. Unless otherwise provided, delegated legislation must be laid before parliament for approval and parliament is empowered to declare the delegated legislation null and void by a resolution to that effect whereupon it becomes inoperative to that effect. Why delegated legislation? Delegated legislation is described as a “necessary evil” or a Constitutional impropriety”. This is because it interferes with the doctrine of separation of powers which provides that the Lawmaking is a function of the legislature. Parliament delegates Law-making powers to other persons and bodies for various reasons: Parliament is not always in session Parliament is not composed of experts in all fields Inadequate parliamentary time Parliamentary Law-making is slow and unresponsive to urgent needs. Additionally it lacks the requisite flexibility Increase in social legislation Advantages of delegated legislation Compensation of last parliamentary time: Since members of parliament are not always in the National Assembly making Laws, the Law-making time lost is made good by the delegates to whom legislative power has been given hence no Lawmaking time is lost. Speed: Law-making by government Ministers, Professional bodies and other organs are faster and therefore responsible to urgent needs. Flexibility: The procedure of Law-making by delegates e.g. Government Ministers is not tied to rigid provisions of the Constitution or other law. The Minister enjoys the requisite flexibility in the Law-making process. He is free to consult other persons. Technicality of subject matter: Since parliament is not composed of experts in all fields that demand legislation, it is desirable if not inevitable to delegate Lawmaking powers to experts in the respective fields e.g. Government Ministries and local authorities.   Disadvantages of delegated legislation Less Democratic: Compared to statute law, delegated legislation is less democratic in that it is not always made by representatives of the people affected by the law. E.g. Rules drafted by technical staff in a government ministry. Difficult to control: In the words of Professor William Wade in his book “Administrative Law” the greatest challenges posited by delegated legislation is not that it exists but that it’s enormous growth has made it impossible for parliament to watch over it. Neither parliament nor courts of law can effectively control delegated legislation by reason of their inherent and operational weakness. Inadequate publicity: Compared to statute law, delegated legislation attracts minimal publicity if any. This law is to a large extent unknown. Sub-delegation and abuse of power: Delegates upon whom law making has been delegated by parliament often sub-delegate to other persons who make the law. Sub-delegation compounds the problem of control and many lead to abuse of power. Detailed and technical: It is contended that in certain circumstances, delegated legislation made by experts is too technical and detailed for the ordinary person.   CONTROL OF DELEGATED LEGISLATION Both parliament and courts of law have attempted to control delegated legislation, however neither can effectively do so. PARLIAMENTARY OR LEGISLATIVE CONTROL Parliament has put in place various mechanisms in its attempt to control or contain delegated legislation: Parliament delegates law-making power to specific persons and bodies e.g. government ministries, local authorities, professional bodies, chief justice e.t.c. T U D Y T E X T The Enabling or Parent Act prescribes the scope and procedure of Law-making. The delegates can only make law as defined by the scope and must comply with the procedures prescribed. The Enabling or Parent Act may require the draft rules to be circulated to interested parties for comments e.g. By-law. The Enabling or Parent Act may provide that the delegated legislation made be laid before the concerned minister for approval e.g. By-laws made by local authorities. This is political control and is largely ineffective. Under Section 27 (1) of the Interpretation and General Provisions Act6, unless otherwise provided, delegated legislation must be published in the Kenya Gazette before coming into force. Under Section 34 (1) of the Interpretation and General Provisions Act, unless otherwise provided, delegated legislation must be laid before parliament for approval and parliament is empowered to pass a resolution declaring the Law null and void where upon it becomes inoperative. NOTE: Legislative control of delegated legislation is by and large ineffective by reason of the operation and inherent weakness of parliament. 2. JUDICIAL CONTROL This is control of delegated legislation by courts of law. Courts of Law attempt to control delegated legislation through the doctrine of ultra vires (beyond the powers). A court of law declares delegated legislation ultra vires thereby rendering it null and void. Delegated legislation may be declared substantively or procedurally ultra vires. 1. Substantive Ultra Vires A court of law on application by a party declares delegated legislation substantively ultra vires if satisfied that: The delegate exceeded the powers prescribed by the Enabling of Parent Act. The delegate exercised his powers for a purpose other than for which the power was given. This is abuse of power. The delegate acted unreasonably. What amounts to an unreasonable act is for the court to decide on the basis of the facts before it. 2. Procedural Ultra Vires A court of law may declare delegated legislation procedurally ultra vires on application if satisfied that the Law-making procedure prescribed by the Enabling or Parent Act was not complied with by the delegate in the law-making process. D Y

Judicial Review is the process through which an aggrieved person can find redress in a Court of Law. Judicial Review forms part of administrative law because it is the most appropriate way that a party aggrieved by an administrative body can find redress. Judicial Review refers to the examination of the actions or inactions of public bodies by the High Court. Judicial Review is an examination of the manner in which a decision was made or an act done or not done. The purposes of Judicial Review from the definition are as follows: To prevent excessive exercise of powers by administrative bodies and officials; To ensure that an individual is given fair treatment by Administrative authorities; To keep Administrative excesses in check and also to provide a remedy to those aggrieved as a result of excessive exercise of power by administrative bodies. GROUNDS OF JUDICIAL REVIEW By looking at the grounds of judicial review, we will be studying the circumstances in which an aggrieved person may petition the High Court for Judicial Review. Courts of Law will intervene in public administration in one or more of the following circumstances i.e. courts of law will review actions of administrative bodies in one or more of the following circumstances: When a body acts ultra vires; Unreasonableness; When there is jurisdictional error; When there is an error of law; When there is an error of fact; When there is an abuse of power; When irrelevant considerations governed the making of a decision; When there is bias; When there is unfair hearing; When there is procedural flaw; When there is irrationality When a public official or body acts in bad faith; When there is breach of the principles of natural justice. There are some overlaps in these grounds e.g. what amounts to procedural flaw may at the same time amount to ultra vires. In actual practice any one of the grounds will entitle an aggrieved party to apply for judicial review and in actual practice circumstances occasioning judicial review will involve one or more of those grounds. One does not have to have all the 13 circumstances to apply for judicial review. Any one of the grounds will suffice and the list is not exhaustive. DOCTRINE OF ULTRA VIRES The doctrine of ultra vires is a legal doctrine. In the English Legal System judicial control of administrative agencies is based on the doctrine of ultra vires. This is the doctrine on the basis of which the courts will interfere or intervene in matters of public administration. Ordinarily courts would not interfere. What is ultra vires It simply means “beyond the powers” so that if ultra vires is the basis in which courts will interfere or intervene on matters of public administration then the point is that courts will intervene on matters of public administration if the administrative bodies have acted beyond the powers that have been conferred on them. The exercise of powers by administrative bodies often affects the rights of citizens and for this reason it is necessary that these powers be exercised only with accordance with the statute granting the power so that people do not suffer. Limits are placed by statutes to ensure that powers conferred to administrative bodies do not end up causing suffering to citizens. For these reasons any act of a public administrative body that is outside the limit of law has no legal validity because it is Ultra Vires. The term Ultra vires can cover a wide range of actions undertaken in excess of the law or in excess of the powers granted. Types of ultra vires: Substantive Ultra Vires. Procedural Ultra Vires. substantive ultra vires Substantive ultra vires is acting in excess of powers with regard to matters of substance. This would include for example administrative body acting beyond what is authorized to do. Substantive ultra vires includes the following cases: Exercising power in excess of statutory limits; Acting in excess of jurisdiction; Breach of the principles of natural justice; in this case failure to give notice of hearing to a concerned party. For example would amount to breach of principles of natural justice and that falls under substantive ultra vires Procedural ultra vires These are cases where administrative bodies fail to follow prescribed procedure. They also include cases where an error occurs in following the procedure. UNREASONABLENESS One of the things the court considers, in determining unreasonableness is whether a public body has considered or taken into account any matter that it ought not to take into account. Another thing that the court will consider is whether a public body has disregarded any matter that it ought to take into account. JURISDICTIONAL ERROR Jurisdiction means the scope or area in which a body is allowed to act. It includes territorial limits. Where there is an error it means: That an administrative agency has acted without jurisdiction i.e. they have acted over matters which they have no authority to act. They have acted within jurisdiction but have gone beyond or exceeded their limits. This can happen: When a body erroneously exercises power or authority over a matter that is outside of its territorial limits. Where a body legislates over a matter that falls outside of the matters it is authorized to legislate over. Where an administrative body declines to exercise jurisdiction to hear and decide a case or to legislate over a matter over which it has jurisdiction to hear or decide or legislate over. (The Administrative body has the authority to do something but it declines to do it.) It may also arise when a body fails to administer a function or to carry out a duty that it has the statutory authority to administer or to carry out. In case any one of these things occurs and a person is aggrieved, the aggrieved person can apply to the High Court for Judicial Review on the ground that a public body has committed jurisdictional error. ERROR OF LAW An error of law is a

Definitions: Natural: Natural is being in accordance with or determined by nature i.e. based on the inherent sense of right and wrong. Just: Means morally upright, correct, proper, good, merited deserved etc. Natural Justice is the administration, maintenance, provision or observance of what is just, right, proper, correct, morally upright, merited or deserved by virtue of the inherent nature of a person or based on the inherent sense of right and wrong. The principles of natural justice are rules governing procedure and conduct of administrative bodies. They were developed by the courts in England and imported into Kenya as part of common law principles. Principles of natural justice are implied i.e. they are not expressed in a statute; they are supposed to apply in every case unless a statute expressly states that they will not apply. Principles of natural justice are applicable in the absence of statutory provisions authorizing their applicability or their observance.   To which bodies do the principles of natural justice apply? In Kenya these principles apply so long as a public body has power to determine a question affecting a person’s rights. The principles also apply to bodies in every case involving a question affecting a person’s interest. Wherever there is a right there is an interest but not vice versa. Interest may include other things. Interest may be pecuniary interest or something else and does not necessarily have to be a right. These principles apply to administrative bodies that are judicial, quasi-judicial legislative or administrative.   THE PRINCIPLES/RULES OF NATURAL JUSTICE Broadly the principles are two Nemo Judex in causa sua – which means that procedures must be free from bias. Audi Alteram Partem – which means that no person should be condemned unheard i.e. a person should not be denied an opportunity to be heard. These two principles have been broken down into a number of principles or rules which are as follows: Rule against bias The right to be heard Prior notice Opportunity to be heard Disclosure of information Adjournment Cross examination Giving reasons Legal representation RULE AGAINST BIAS In summary there can be bias when: There is some direct interest in the matter to be adjudicated; e.g. pecuniary interest; Where short of a direct interest there is a reasonable appearance or likelihood of bias; Where there is actual bias. RIGHT TO BE HEARD This is simply that a concerned person must be given a right to be heard. If an administrative body fails to give a concerned person the right to be heard, whatever decision it makes will be invalidated upon review. PRIOR NOTICE This rule requires that adequate prior notice be given to a person of any charge or allegation. It simply means that if an administrative body makes a charge it has to give a person against whom allegations have been made adequate notice before a decision is made. Prior notice must be served on the relevant party. The notice must contain sufficient detail to enable the person concerned to know the substance of any charge, allegation or action to be taken against him. OPPORTUNITY TO BE HEARD There is no settled rule as to whether hearing should be oral or written but in all cases one must be afforded a chance to present his case whether oral or written. DISCLOSURE OF INFORMATION A concerned party must be given all information which the decision maker will rely on to make his judgment. This rule requires that all allegations and reports bearing on a person’s case must be disclosed to that person. Failure to do so is fatal to a decision. ADJOURNMENT Natural Justice requires that a party be granted adjournment of a hearing of a case if the exigencies require (it does not matter how guilty a person is, if exigencies arise, they must be accorded an adjournment by the administrative body and if they are denied an adjournment and a decision is given, the court will quash such a decision) Please note that wrongful refusal to adjourn amounts to a denial of a fair hearing and will result in the quashing of a decision. CROSS EXAMINATION An opportunity to cross-examine can only be availed if there is an oral hearing i.e. the rule applies to cases where there is an oral hearing. Whenever there is an oral hearing and a party requests to cross-examine, the affected party must be granted an opportunity to cross examine. If an affected party requests to cross-examine but an opportunity is denied, the decision made can be voided on grounds of breach of principles of natural justice. Please note that if a party does not ask for a chance to cross-examine, he is precluded from complaining. GIVING REASONS Progressively, courts are insisting on giving reasons for a decision as a component for natural justice. (If an administrative body denies you let’s say a license, they must give you the reasons why failure to which you can petition the High Court for a review). LEGAL REPRESENTATION This does not apply in every case but in suitable cases and suitable circumstances, the right to representation by a lawyer or some other person may be part of natural justice. For example in the Liquor Licensing Act, it allows for a person applying for a license to be represented by an authorized agent in which case he becomes the legal representative before the court. Where legal representation is necessary, authorized and is requested by a party the right to legal representation must be granted. If denied, a decision may be quashed on grounds of failure to observe the principles of natural justice.   EFFECT OF BREACH OF PRINCIPLES OF NATURAL JUSTICE The effect of failure to comply with the rules of natural justice is that any decision or other administrative action taken is null and void and can be invalidated by the courts. Breach of principles of natural justice has been a good ground of judicial review. Please note that breach of any one of the rules

MEANING OF ADMINISTRATIVE LAW Administrative Law can be defined as the law relating to public administration. It is the law relating to the performance, management and execution of public affairs and duties. Administrative law is concerned with the way in which the Government carries out its functions. Administration is the act or process of administering, which simply means it is the act of meeting out, dispensing, managing, supervising and executing government functions It is the law relating to control of governmental power. It can also be said to be the body of general principles, which govern the exercise of powers and duties by public authorities. The primary purpose of administrative law, therefore, is to keep the powers of government within their legal bounds, so as to protect the citizen against their abuse. Administrative law is also concerned with the administration and dispensation of delivery of public services. However it does not include policy making. Administrative law is concerned with how the government carries out its tasks. The government tasks include delivery of public services such as health, security, facilitating trade, arbitration of disputes, and collection of revenue. Administrative law is the law relating to the executive branch of government. The law deals with a variety of things e.g. The establishment of public authorities e.g. the city council, establishment of public bodies and organs. The nature of the tasks given to various public organs and public agencies. The legal relationship between the public bodies themselves and also between the public agencies and the public and between public agencies and the citizens. Administrative Law is concerned with the means by which the powers and duties of the various public agencies, public bodies and public institutes can be controlled.   FUNCTIONS OF ADMINISTRATIVE LAW Administrative functions can be divided into a number of broad categories namely Ministerial functions; Examples of Ministerial Functions are those functions carried out or performed by Government Ministers in their implementation of governmental policies and programs. Examples include appointment of public officials by Ministers and the grant of ministerial approvals and consents. Administrative functions: these are the functions carried out by public officials and public bodies in their management of various governmental bodies in their provision of services for example educational services and in their administration of various social services as in the case of social security services. Legislative functions: These include the function of making or creating subsidiary legislation. The responsibility of legislative functions is on the respective Ministers‟. The duty of making by-laws is also the respective ministers. Judicial functions: These primarily involve the functions of determining claims or disputes between individuals and other bodies. A good example of administrative body that performs judicial functions is the Industrial Court which functions as a court of law. Quasi Judicial functions: These involve the exercise of powers which are fundamentally judicial but without the usual trappings of a court of law for example without strict requirement of rules of evidence or the observance of rules of evidence, without strict requirements of examination of witnesses and without other legal Technicalities. A good example being the Liquor Licensing Court, the Land Control Boards and the Motor Vehicle Licensing Authorities.   Objective /purposes of administrative law It ensures proper dispensation of services. It seeks to protect citizens from abuse of power. To keep the powers of government i.e powers of various public bodies within their legal bounds, so as to protect citizens from their abuse. Abuse of power can arise either from malice, bad faith or even from the complexities of the law. There are duties placed in public bodies (public institutions) such that another function of the law is to see that the duties are performed and that the public agencies can be compelled to perform their duties where there is laxity or where they refuse or otherwise fail to do so.

There is no precise legal definition of a company‟ .The word „company‟ is a by- product of mercantile rather than legal ingenuity and was in use in England long before what is now called „company law‟ came into existence Although the word was initially used by English merchants to denote associations which they had formed for trading overseas, such as the British East India Company and the Hudson Bay Company, it was gradually extended with surprising latitude to diverse association until it ceased to have a specific meaning. One major consequences of this extension is that the English Company Law which has been adopted in Kenya defines or classifies „companies‟ according to the mode of their formation rather than according to their intrinsic attributes. CLASSIFICATION OF COMPANIES Section 389 of the Companies Act provides that „‟no Company, association or partnership consisting of more than twenty persons shall; be formed ….. Unless it is registered as a company under this Act, or is formed in pursuance of some other Act, Act of the United Kingdom or of letters patent‟‟. Three types of companies are provided for under this section. They are: Chartered companies Statutory companies Registered companies 1. CHARTERED COMPANIES A chartered company is formed when the queen or King of England issue a charter, or „letters patent‟, to a group of people who intend to carry on a business as a chartered company. No such company can be formed in Kenya after political independence and the words „letters patent‟ in s. 389 only serve as a reminder of the England origin of our Companies Act which is the replica of the English Companies Act, 1948, with a few minor modifications. 2. STATUTORY COMPANIES Statutory companies are set up by specific Act of Parliament or under authority of an Act of parliament by the state. The Act confers upon the statutory company corporate personality to enable it to exist separate from the government. In the past, the government established such companies under specific Act of parliament e.g. Kenya Railways (set up under the Kenya Railways Corporations Act), the former Kenya Post and Telecommunications (set up under the Kenya posts and telecommunications Act which has since been repealed) and the Kenya ports Authority (set up under the Kenya ports Authority Act). However, since the passing of the state Corporation Act (Cap 446) law of Kenya, the government has moved towards formation of state corporations under the Act. Section3 (1) of the Act provides that, the president may, by order, establish a state corporation as a body corporate to perform the functions specified in the order. In this regard many state corporations have been established through the authority of this Act as fewer are being formed through specific Acts. Such state corporations are endowed with perpetual succession; the ability to institute suits and being sued in their corporate name; and capacity to hold and alienate movable and immovable property in accordance with the Act. The object of statutory corporations is set out in the Act which creates them or the creating instrument which is usually an order from the president under the State Corporations Act issued as a subsidiary legislation to the Act. Therefore a statutory corporation can only carry out those functions for which it was created. Moreover the capital of a statutory corporation is raised through borrowing, guaranteed by the Treasury, or by Treasury. Its profits and gains are injected back into the corporation or paid to the Treasury as dividend. When it makes loss and is unable to pay its debt it can be sued and its property attached to settle a judgment of the court but it cannot be wound up on the grounds that it is unable to pay its debts as happens in registered companies. Such statutory corporations are wound up on the repeal or revocation of the parent statute. 3. REGISTERED COMPANIES A registered company is formed by registration under the companies Act. It is this type of company that people usually have in mind when they talk of „a company‟. The notes that follow are concerned exclusively with „registered companies‟. It should be noted that s.2 of the Companies Act defines a company as „„a company formed and registered under this Act’’. CLASSIFICATION OF REGISTERED COMPANIES/TYPES OF COMPANIES Registered companies are classified by s.4 (1) of the companies Act into: A company formed by „‟any seven or more persons‟‟. Such a company is known as a public A company formed by „‟any two or more person‟‟. Such a company is referred to in the Act as „‟a private company‟‟. A PRIVATE COMPANY OR A PUBLIC COMPANY MAY BE: 1. Limited by shares if the liability of its members is limited by its memorandum to the amount, if any, unpaid on the shares, respectively held by them. 2. Limited by guarantee if the liability of its members is limited by its memorandum to an amount which the members have undertaken to contribute to the assets of the company in the event of its being would up. 3. Unlimited if it does not have any limit on the liability of its members. Limited liability companies may be classified into either private or public limited company: PRIVATE LIMITED COMPANIES. A private limited company may be identified by the following characteristics: Can be formed by two to fifty members. Does not invite subscription for shares and debentures from the public. Restricts the transfer of shares and debentures. Can be managed by at least one director. Can start business immediately after receiving a certificate of incorporation. PUBLIC LIMITED COMPANIES A public limited company may be identified by the following characteristics: Formed by a minimum of seven members and no maximum. Cannot start business before it receives a certificate of trading. Accounts are required to be published. Shares and debentures are freely transferable. Invite the public to subscribe for shares and debentures. ADVANTAGES OF LIMITED COMPANY. Shareholders have limited liability (can only lose what they have put in the business)

NATURE AND CHARACTERISTICS What is a negotiable instrument? This is a document which represents money and the title in passes to a bona fide transferee free from only defect. It is a chose in action. Negotiable instruments are transferable by reason of law or trade usage or custom. Characteristics of Negotiable Instruments Consideration is presumed to have been provided i.e. past consideration is good consideration. A bona fide transferee of a negotiable instrument need not be notified before it is negotiated. A holder for value can sue on it in his own name. If payable to the bearer, it is negotiable by delivery. If payable to the order of specified person, it is negotiable by endorsement/ endorsement and delivery. The party liable on a negotiable instrument needs to be notified before it is negotiated. Examples Include: Cheque, bills of exchange, promissory notes, share warrants, dividend warrants, bearer debentures etc.   TYPES: CHEQUES, PROMISORY NOTES, BILLS OF EXCHANGE CHEQUES Under Section 74(1) of the Bill of Exchange Act, a cheque is a bill of exchange drawn on a banker, payable on demand. It is a negotiable instrument negotiable by delivery or by endorsement and delivery. It differs from a bill of exchange in various ways: – It can only be drawn on a banker It is payable on demand It does not require acceptance Non-presentation does not discharge it It is less negotiable It may be crossed generally or specially Notice of dishonour is not necessary   Types / classification of cheques Cheques may be classified on the mode of payment and to whom payable: Bearer cheque: This is a cheque whose proceeds are payable to the holder. Order Cheque: This is a cheque whose proceeds are payable to specified person or his order. Whereas a bearer cheque is negotiable by delivery an order cheque is negotiable by endorsement or delivery. Open Cheque: This is a cheque whose proceeds are payable across the counter. Crossed Cheque: Is a cheque that contains two parallel transverse lines on its face with or without account. A crossing is an instruction to the banker not to pay the proceeds across the counter.   Types of crossing A cheque may be crossed generally or specially: General Crossing: Consist of two parallel transverse lines on the fact of the cheque with or without the words “and Co.” “Account payee”, “Not negotiable” etc. A cheque crossed generally may be crossed specially by the drawee. Special Crossing: Consists of two parallel transverse lines of the face of the cheque with the name of the banker in told.   BANKER-CUSTOMER RELATIONSHIP There is a simple contractual relationship between the banker and customers. It is a debtor credit or relationship which imposes upon the parties certain legally binding obligations.  Duties of the customer Duty of Care: The customer is bound to the exercise reasonable care when drawing cheques to guard against alterations. The banker is not liable for any loss arising if the customer has failed to exercise reasonable care. Notice of irregularities: The customer is bound to notify the banker of any irregularities affecting the accounts e.g. forgeries or unauthorized which the customer is estopped from relying on the irregularity. Duties of the banker Paying Bank: This is the banker on which the cheque is drawn. It is the banker liable for the amount. Collecting Bank: This is the bank in which the cheque is deposited for payment. Duty of Care: The banker is bound to exercise reasonable care and skill in his dealings with the customer. The standard of care and skill is that of a reasonably competent banker. If the banker fails to exercise such care and skill, the customer has an action in damages for any loss arising for professional negligence. Professional Advice: The banker is bound to give the customer professional advice on request. He is bound to give advice on investments as and when requested failing which he is liable in damages. Duty to Honour Cheques: The banker is bound to honour all cheques drawn by the customers provided: – The cheque is complete and regular on the face of it The customer‟s account has sufficient funds The cheque is presented at a reasonable hour on a business hour and business day. The payee identifies himself to the satisfaction of the banker. If a banker fails to honour a cheque in breach of this duty, the customer has an action in damages. Duty of Secrecy: The banker is bound to maintain confidentially in his dealings with customer. He must not discuss to 3rd parties any information which comes to him in the course of his dealings with the customer. The duty of secrecy was laid down in Tournier v. National Provincial and Union Bank of England which the English Court of Appeal insisted of the upholding of the duty. However the court was emphatic that the duty may be qualified in certain circumstance where personal information relating to the customer may be discharged to 3rd parties e.g. Where disclosure is provided for by the law Where the banker has the customer convent to disclose Where disclosure is necessary in the public interest What it is necessary to protect the banker Duty not to pay without Authority: The banker must not pay any monies out of the customer’s account without his express or implied authority failing which he is liable in damages for breach of duty. However, banker losses his authority to pay in various ways:- Countermand of payment: This is an express instruction by the customer to his banker not to honour a particular cheque If the banker has notice of the customer’s death If the banker has notice of the customers‟ unsoundness of mind If the banker has notice of presentation of a bankruptcy petition against the customer in court. If the cheque is irregular e.g. amounts in words and figures do not tally. If the customer’s account has been frozen by a court order. If the cheque is presented before time (post

ALTERNATIVE DISPUTES RESOLUTION Alternative dispute resolution (ADR) includes dispute  resolution processes and techniques  that act as a means for disagreeing parties to come to an agreement short of litigation. It is a collective term for the ways that parties can settle disputes, with the help of a third party. GENERAL PRINCIPLES OF ADR The following principles shall apply in Alternative Dispute Resolution (ADR) implemented for contested cases: Voluntary The parties usually must agree to submit their dispute  to mediation or early neutral evaluation. an alj, however, may require parties to attend facilitated workshops, settlement conferences, or meet with a neutral to explore the feasibility of mediation. Timeliness ADR should shorten, not prolong, proceedings. but even if a negotiated settlement takes longer, the result may be more beneficial to all. Good faith Those who engage in adr should do so in an attempt to reach agreement–not to delay or secure tactical advantage. Confidentiality Most ADR processes require confidentiality so that the parties’ fundamental interests can be explored. Benefits and disadvantages ADR has several advantages over litigation: Suitable for multi-party disputes Lower costs Likelihood and speed of settlements Flexibility of process Parties’ control of process Parties’ choice of forum Practical solutions Wider range of issues can be considered Shared future interests may be protected Confidentiality Risk management However, ADR less suitable than litigation when there is: A need for precedent A need for court orders A need for interim orders A need for evidential rules A need for enforcement Power imbalance between parties Quasi-criminal allegations Complexity in the case There are three main types of dispute resolution currently in use: Arbitration Mediation Negotiation Advantages of resolving commercial disputes Resolving a commercial dispute provides an opportunity to: Remedy an unwanted commercial situation Present your side of the argument Remedy an injustice Learn lessons about the way your business is run Appear strong, principled and Disadvantages of resolving commercial disputes There are few drawbacks to actually resolving disputes, but during the process some or all of the following problems might arise: Financial expense Increased stress and pressure Senior executives’ time being taken up by the dispute Bad publicity Options for resolving your dispute ARBITRATION This is an out of court method of settlement of civil disputes by arbitral tribunals which make arbitral awards as opposed to judgments. The law relating to arbitration in Kenya is contained in the Arbitration Act2,. Under the Act, an arbitration agreement is an agreement between parties to refer to arbitration all or certain disputes arising between them. Principles of Natural Justice in Relation to Arbitration proceedings are a fundamental requirement of justice in deciding a dispute between two or more parties. Firstly, that the arbitrator or the tribunal must be and must be seen to be disinterested and unbiased. Secondly, every party must be given a fair opportunity to present his case and to answer the case of his opponent. The first principle is embodied in Section 13 of the Arbitration Act which provides that  when a person is approached for appointment as an arbitrator he must disclose any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. That duty on the part of the arbitrator is a continuing duty right from the time that he is approached through to the time he accepts appointment, conducts the reference, and renders his award. So under Section 13(2) the arbitrator is obliged through the arbitral proceedings to disclose without delay such circumstances. The arbitrator must be on his guard with respect to connections with a party or connections  in the subject matter of dispute or connections with the nature of the dispute. And the test  that the arbitrator must always bear in mind is whether a reasonable person not being a    party to the dispute would think that the connection was close enough to cause the arbitrator to be biased. An arbitration agreement must be written, it may take the form of a detailed agreement or a clause in the agreement. The Arbitration Act governs national and international disputes. Methods of reference to arbitration  A dispute may be referred to arbitration by: The parties to the agreement An Act of Parliament A court of law with consent of the parties to the Arbitrators may be appointed by: The parties to the dispute A third party as agreed to by the parties The High Court on application Under section 12 (1) of the arbitration Act, the High Court may appoint an Arbitrator on application if: The parties cannot agree as to who the single arbitrator shall be In the case of two arbitrators, either party has failed to appoint an arbitrator within 30 days of receipt of the parties notice to do The two arbitrators fail to appoint a 3rd arbitrator within 30 days of their appointment. Powers of the arbitrator To determine whether it has jurisdiction to hear the To provide interim relief or remedies where necessary To demand security from either party To determine the admissibility of evidence To administer oaths To examine persons on Duties of the arbitrator Once the arbitrator is pointed, he must enter upon his duties without undue delay. And if the terms of appointment dictate he must make an interim award, however, at the conclusion of the process he is bound to make a final The decision of the arbitrator is known as an award. It must be written setting out the reasons for the decisions. It must be by majority and must be signed by all It must specify the date and the place at which it was made. Recourse to the high court Under section 35 (1) of the Arbitration Act, the High Court has jurisdiction to set aside an arbitral award an application by either of the parties. The award will be set aside if the court is satisfied that: One of the parties to the arbitration agreement had no capacity to enter into it. The arbitration agreement was invalid in The party was not offered

Carriage of goods, in law is the transportation of goods by land, sea, or air. The relevant law governs the rights, responsibilities, liabilities, and immunities of the carrier and of the persons employing the services of the carrier. Until the development of railroads, the most prominent mode of transport was by water. Overland transportation of goods was relatively slow, costly, and perilous. For this reason, the law governing carriage of goods by sea developed much earlier than that governing inland transportation. The preclassical Greek city-states had well-developed laws dealing with the carriage of goods by sea, along with specialized commercial courts to settle disputes among carriers, shippers, and consignees. The sea laws of the island of Rhodes achieved such prominence that a part of them was carried, many centuries later, into the legislation of Justinian. In Roman law the contract of carriage did not achieve the status of a distinct contractual form; jurisconsults (legal advisers) dealt with it in the framework of the contractual forms known to them, such as deposit and hire of services or of goods. There was special regulation only insofar as the responsibility of the carrier was concerned: shipowners (nautae), along with innkeepers and stable keepers, were liable without fault for destruction of or damage to the goods of passengers. Nevertheless, they could be relieved of responsibility by proving that the loss was attributable to irresistible force. TYPES OF CARRIERS A ‘carrier’ can be simply defined as a person who carries cargo (or indeed carries passengers, but passenger carriage is outside the scope of this Practice Note) for the benefit of other persons, whether gratuitously or for payment (or ‘reward’). THE TYPES OF CARRIER ARE: Common carriers Private carriers Other types of carriers with special rights and duties For the avoidance of doubt, the following are not carriers: Stevedores Forwarding agents who merely arrange or procure carriage by others MODES OF CARRIAGE Road Transport It incorporates transport using road bound means like Lorries, trucks, vans, tankers etc. It is suitable for transporting durable, bulk products, door to door deliveries especially where the distances covered are not long. Categories of road transport include: Own fleet e.g. company Lorries, Vans etc. Contract hire e.g. Swan carriers, Andy forwarders etc. Public hauliers e.g. Signon freight. Advantages of Road Transport Roads are widely spread throughout the country therefore many places are accessible It is a source of employment to drivers and conductors. Special facilities e.g. refrigerated trucks make it possible to transport perishable goods It is faster over short distances. It is readily available especially in well-developed roads. Promotes industrial growth. Roads are widely spread throughout the country therefore many places are accessible It is a source of employment to drivers and conductors. Special facilities e.g. refrigerated trucks make it possible to transport perishable goods Usually flexible. It provides door-to-door service It’s relative cheap compared with other modes of transport Disadvantages of road transport They cause environmental pollution because of gases they emit to the air. Bad roads may be impassible during rainy season. Causes traffic congestion and jam especially in towns and large cities. It is slow and expensive when carrying bulky goods over long distances. They cause environmental pollution because of gases they emit to the air. They are more prone to accidents, theft and pilferage of goods Bad roads may be impassible during rainy season. Unreliable since road transporters don’t stick to strict time schedules Not suitable for urgently required goods and perishable unless special facilities are installed. Rail Transport It is one of the oldest modes of transport and its popularity was fueled by the industrial revolution. The first trains were steam powered which were later replaced by diesel powered and more recently electric trains were introduced. Rail transport is suitable for bulky and durable goods to be transported over long distances, heavy /less value consignment like sand, gravel, cement, grains etc. ADVANTAGES OF RAIL TRANSPORT It is less affected by delays caused by extreme weather conditions such as heavy rainfall. Rails occupy less space as compared to roads which are wide. Causes little pollution in the environment especially where modern electric trains are in use. It is economical in the use of labor i.e. one engine can pull several wagons It is relatively fast especially where electric trains are in use. It is convenient to clients in terms of time because trains run on a regular schedule. Special cargo e.g. petrol, vehicles and cattle can be transported using specifically designed wagons. Still perishable goods are transported in refrigerated wagons. It is less likely to be affected by theft and accidents Most railway stations have warehouses where goods can be stored awaiting collection. Trains have direct routes on which they move and one can predict the various stations they will pass through It is more comfortable for passengers travelling for long distances as they can sleep. It is reliable due to adherence of strict schedules No major limitations on geographical areas. It is economical for transportation of bulky and irregular goods e.g. tractors. Over long distances. DISADVANTAGES OF RAIL TRANSPORT. Not flexible- It can only serve areas where there are railway lines Cannot be utilized while the tracks are being constructed unlike road transport-it has to be laid out in totality for it to be used. It is a slow means of transport when numerous stops to load or off-load cargo have to be made. This makes it an unsuitable means of transporting perishable goods. A break down along a railway line could easily result in a buildup of goods and passengers, resulting in alternative means of transport being sought. It is an expensive means of transport for small quantities of goods and for short distances. The loading and offloading at the start and end of each journey present opportunities for damage and loss of goods. It involves heavy capital investment to construct and maintain It requires specialized skills to operate. Water Transport It encompasses the use of ships, barges, steamers, ocean liners, tankers, cruisers, ferries canoes and boats. It’s suitable over long distances, bulky

Bankruptcy is a legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt Bankruptcy is a legal proceeding carried out to allow individuals or businesses freedom from their debts, while simultaneously providing creditors an opportunity for repayment. Bankruptcy can allow you a fresh start, but it will stay on your credit reports for a number of years and make it difficult to borrow in the future. Bankruptcy offers an individual or business a chance to start fresh by forgiving debts that simply cannot be paid while giving creditors a chance to obtain some measure of repayment based on the individual’s or business’s assets available for liquidation. In theory, the ability to file for bankruptcy benefits the overall economy by allowing people and companies a second chance to gain access to credit and by providing creditors with a portion of debt repayment. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations ACTS OF BANKRUPTCY (1) A debtor commits an act of bankruptcy in each of the following cases—  If in Kenya or elsewhere he makes a conveyance or assignment of his property to a trustee or trustees for the benefit of his creditors generally; If in Kenya or elsewhere he makes a fraudulent conveyance, gift, delivery or transfer of his property, or of any part thereof; If in Kenya or elsewhere he makes any conveyance or transfer of his property, or of any part thereof, or creates any charge thereon, which would under this or any other Act be void as a fraudulent preference if he were adjudged bankrupt; If with intent to defeat or delay his creditors he does any of the following things, namely, departs out of Kenya, or being out of Kenya remains out of Kenya, or departs from his dwelling-house, or otherwise absents himself, or begins to keep house; If execution against him has been levied by seizure of his goods in any civil proceeding in any court, and the goods have been either sold or held by the bailiff for twenty-one days: Provided that, where an interpleader summons has been taken out in regard to the goods seized, the time elapsing between the date at which the summons is taken out and the date at which the proceedings on the summons are finally disposed of, settled or abandoned shall not be taken into account in calculating the period of twenty-one days; If he files in the court a declaration of his inability to pay his debts or presents a bankruptcy petition against himself; [Rev. 2012] CAP. 53 Bankruptcy B3 – 11 [Issue 1] If a creditor has obtained a final decree or final order against him for any amount, and, execution thereon not having been stayed, has served on him in Kenya, or, by leave of the court, elsewhere, a bankruptcy notice under this Act, and he does not within seven days after service of the notice, in case the service is effected in Kenya, and in case the service is effected elsewhere then within the time limited in that behalf by the order giving leave to effect the service, either comply with the requirements of the notice or satisfy the court that he has a counterclaim, set-off or cross-demand which equals or exceeds the amount of the decree or sum ordered to be paid, and which he could not set up in the action in which the decree was obtained, or the proceedings in which the order was obtained; and for the purposes of this paragraph and of section 4, any person who is, for the time being, entitled to enforce a final decree or final order shall be deemed to be a creditor who has obtained a final decree or final order; If the debtor gives notice to any of his creditors that he has suspended, or that he is about to suspend, payment of his debts. (2) In this Act, except where the context otherwise implies, “a debtor” includes any person, whether domiciled in Kenya or not, who at the time when any act of bankruptcy was done or suffered by him— 1. Was personally present in Kenya; or 2.  Ordinarily resided or had a place of residence in Kenya; or 3.  Was carrying on business in Kenya personally or by means of an agent or manager; or 4.  Was a member of a firm or partnership which carried on business in Kenya, and for the purposes of Part IX includes a person against whom bankruptcy proceedings have been instituted in a reciprocating territory and who has property in Kenya.. BANKRUPTCY PROCEDURE The Bankruptcy Commission has worked since its establishment to provide instructive materials in the form of guides, templates, and tools that aim to facilitate and clarify the regulations of the bankruptcy procedures. The beneficiaries can understand the stages of every bankruptcy procedure by visiting the page of the main seven bankruptcy procedures. Each procedure’s page contains a journey that illustrates the procedure’s steps and stages, as well as the stakeholders’ roles and responsibilities. The page contains a guide to the commencement of bankruptcy procedure and a card that illustrates the information and documents required while the commencement of the procedure. The bankruptcy procedures aim to allow the bankrupt, distressed, or potentially distressed debtor to benefit from the bankruptcy procedures so that he or she can restructure his or her finances, and resume his/her business activities while protecting the creditors’ rights and maximizing the Bankruptcy Assets. The Bankruptcy Law contains seven main procedures:​​ 1.Protective Settlement ​​Procedure ​ (Bankruptcy Law, chapter 3, Implementing Regulations, chapter 3) A procedure that aims to facilitate reaching an agreement between the debtor and his/her creditors to settle the debts and allow the debtor to continue running his/her business.  ​​ Financial

Bailment mainly referred to as the Transfer of the Personal property to a person for the complete safekeeping purpose only. Normally, the Contract of bailment is a contractual relationship for a specific period of time. The person receiving property would have the possession as well as control on the property. What is the Contract of Bailment? A bailment of the personal property mainly includes the Bailor (party having possession but not ownership) and the bailee (for a kind of particular purpose). Normally, the transfer would be made based on the way of expressing or implement of the contract to the highest extent so that the Property would be conveniently redelivered for bailor to complete purpose. In fact, during this period of time, the person signed would be responsible for the whole property. However, the original owner for the property would mainly retain the ownership with the interest on time. For exploring these aspects, you could conveniently consider with Bailment to the extent. Personal property in the bailment would be made in the custody of the person with payment of the money. Based on the custody of the property to the person would be bound with the due care for keeping as well as preserving property that is entrusted to the extent. What are the Five Sorts of Bailments? Normally, the Bailment is quite the unique contract that does not include with property for sale so that these contracts mainly include with the seller-financing or with making payment of property to the extent. With higher intent of the contract is to transfer then bailment mainly does not have any kind of transfer of the property bit with the temporary control of the property. For conveniently enabling the bailment to exist, bailee needs to have the intention for possessing the property as well as actual possession of the property. Bailor mainly intends that your property would be returned within the speculated time or during the end of the time. Bailments are mainly divided into 5 sorts that include Depositum, or Deposit Mandatum, or Commission Commodatum, or Loan for use Pignoli Accepted, or Pawn Located, or Hiring What are the Purposes of Bailment? Bailment is mainly created without any kind of actual written contract in most of the cases but the low also recognizes that the bailment also exists. The main purpose for the creation of the Bailment is Mutual benefit for Bailor and Bailee – Easier to exchange of services between the parties so that when bailor leaves the property then bailee is to be repaired. Later bailor needs to repay for any repairs For gaining sole bailor benefit – Mainly created with a valuable item like TV, car, jewelry or leaving an item for the safekeeping For Bailee benefit – Mainly created for the owner of the loan item that priority would mainly enable for another person Unilateral and Mutual Benefit Bailments   What Are “Mutual Benefit Bailment” And “Unilateral Benefit Bailment”? Normally, the bailment would be made by either the party or both the parties. unilateral benefit bailment and mutual benefit bailment are quite different from each other. Unilateral Benefit Bailment is the unique aspects where bailor mainly helps the bailee to receive more benefits for the bailment that is either the party does not. In fact,  it could mainly arise as a gift or favor as one party to each other. Mutual Benefit Bailment mainly offers the complete benefit for bailee as well as bailor. The mutual benefit bailment mainly has the complete pursuant for the enforceable contract and could exchange[1] the value that mainly has the impetus in the relationship. What are the Main 3 Elements of A Bailment? According to the civil lawsuits mainly arise on the failure in bailee for the property of bailor. Bailee mainly has the duty to protect the property of the bailor and it mainly proves that this bailment of property existed. Bailee would be under the obligation for taking the most responsible care of the property that is placed under the possession. In fact, Bailment contracts are quite a common occurrence in modern-day life. Below are some of the most important elements that existed for the bailment: Delivery: Property needs to be delivered based on the Bailment with the best care to the bailee so that they may control the property for a few periods of time based on the agreement. Normally, Control of property also does not require the possession of the actual property in most of the cases however, it also mainly gives the complete access for the property like providing the keys for the secure storage unit and many others. Bailor would mainly give the bailee with complete access on taking custody of property to the extent with actual delivery. Acceptance: Bailee mainly knows to accept the possession or control of the property so that when no one is mainly unwitting to become the bailee then it is important to include the type of contract, acceptance, and knowledge. With the creation of bailment mainly implied or expresses the possession or control on property enabled by Bailee. Consideration: Unlike any other typical contract, both parties also need to receive the value of the property as one party needs to receive something that is mainly enabled with the value in bailment. When one party loans use of his car for a good friend then bailment is created in the process even though bailor mainly receives with nothing of value and this would be the benefit for bailee. With the exchange of something of value that needs to be present when bailment exists. Consideration of the contracts also gives the complete value for the property so that every action on the property would be regarded as the consideration. What are the Rights And Responsibilities to Be Considered By Bailee? Written Bailment Contract is made then it also mainly enabled with certain rights and duties mainly suitable for the parties. For some circumstances, if there is no written contracts are made then law mainly recognizes that the Bailee needs