Business Law Lecture Notes - ATSWA Study Text

Comprehensive vocabulary flashcards covering the Nigerian legal system, contract law, agency, sales of goods, partnerships, and company law based on the ATSWA Part I Business Law study text.

Law

A body of rules and regulations designed to regulate human conduct in society, backed by sanctions to ensure compliance.

Constitution

A document with special legal sanctity setting out the framework, functions, and principles of government organs while safeguarding the rights of the governed.

Supremacy of the Constitution

The principle that the provisions of the Constitution are binding on all authorities and persons, and any law inconsistent with it is null and void.

Common Law

Part of Received English Law developed by the old common law courts of England, consisting of rules found in judicial decisions.

Doctrines of Equity

Principles developed by the English Court of Chancery to provide relief where common law rules worked hardship or injustice; based on the principle that equity prevails over common law in cases of conflict.

Judicial Precedent

A principle of law on which a judicial decision is based, specifically the ratio\,decidendi (reason for the decision).

Customary Law

Rules of law which by custom are accepted by members of a particular community as binding upon them; includes ethnic and Islamic (Sharia) law.

Vicarious Liability

A legal doctrine where liability is imposed on an individual (such as a master) for the tortious actions of another (such as a servant) who is under their control and acting within the scope of employment.

Contract

A promise or set of promises which the law will enforce, requiring agreement, consideration, intention to create legal relations, capacity, and legality.

Offer

A definite promise made by one party (offeror) with the intention that it shall be binding once accepted by the party to whom it is addressed (offeree).

Invitation to Treat

A preliminary communication indicating willingness to negotiate, such as advertisements or display of goods, which is not an offer capable of acceptance.

Consideration

Something of value in the eye of the law, or the price paid by each party for the promise of the other; can be executed or executory.

Privity of Contract

The principle that only persons who are parties to a contract can acquire rights or incur liabilities under it.

Condition

A fundamental term of a contract that goes to the root of the agreement, the breach of which entitles the injured party to repudiate the contract.

Warranty

A less important term in a contract, the breach of which allows for a claim for damages but does not give the right to reject the contract.

Caveat Emptor

A common law doctrine meaning "let the buyer beware," placing the burden on the buyer to ensure goods are of adequate quality before purchase.

Nemo Dat Quod Non Habet

The legal rule providing that "no one can give what he has not got," meaning a buyer acquires no better title than the seller possessed.

Agency

A triangular relationship where one person (agent) is authorized by another (principal) to create legal relations between the principal and third parties.

Hire Purchase

An agreement where the owner lets goods on hire to a hirer with an option for the hirer to purchase the goods after paying a specified number of installments.

Insurance

A contract where the insurer, for a premium, agrees to pay the insured a sum of money or indemnify them against loss upon the happening of a specified event.

Insurable Interest

A legal requirement for insurance where the insured must have a financial relationship with the subject matter such that they benefit from its safety or are prejudiced by its loss.

Partnership

The relationship which subsists between persons carrying on a business in common with a view to profit.

Limited Liability Partnership (LLP)

A body corporate and separate legal entity from its partners, offering perpetual succession and limited liability to its members.

Promoter

A person who undertakes to take part in forming a company and setting it going, acting in a fiduciary capacity toward the proposed company.

Bill of Exchange

An unconditional order in writing, signed and addressed by the drawer to the drawee, requiring payment of a specified sum on demand or at a fixed future date.

Money Laundering

The process of concealing or disguising the origin of illegally obtained proceeds; regulated by acts that limit cash payments and mandate customer identification.