Banking Certificate Course:
Principles of Law
Objective

To enable candidates to:

- Demonstrate knowledge and understanding of the principles of law relating to the business of banking;
- Apply those principles to practical banking situations and problems;
- Communicate their conclusions to such problems effectively to colleagues and to customers.
A. INTRODUCTION TO TANZANIA LEGAL SYSTEM

The sources of Laws in Tanzania and their classifications:

(i) Sources

1. Constitution
2. Statues
3. Delegated Legislation
4. Customary and Islamic Laws
5. Reception Clauses
6. Case Law and Precedents
(These should be discussed in the context of Banking Business)
  (ii) Classifications

1. Public/Private
2. Civil/Criminal
3. Common Law/Equity
4. Substantive/Procedural
5. International/Municipal Law
  (iii) Tanzania Courts System and their Jurisdiction

• Primary Courts
• District Courts/Resident Magistrate Courts
• High Court
• Court of Appeal

(Powers and Jurisdiction of these Courts should be discussed)
Recommended Reading on this Part

1. Judicature and Application of Laws Ordinance, 1961
2. The Constitution of Tanzania, 1977
3. Magistrate Court Act, 1984
4. The Appellate Jurisdiction Act, 1979
5. English Text Books dealing with General Principles of Laws.
6. The Civil Procedure Code Act, 1966
B. CONTRACT LAW AND BANKING
  (i) Introduction to the Law of Contract

- Essentially of Valid Contracts
- Offer and its Acceptance
- Termination of an offer
- Revocation of Acceptance
- Consideration
- Intention to create Legal Relationship
- Contractual Capacity
- Free Consent
- Breach of Contract and its Consequences.

Relevant Local Statute: Law of Contract Ordinance Cap. 433.
  (ii) Special Contract: Banker and Customer

- Definitions and their Significance
- Aspects of banker/customer relationship
- Rights and Obligation of the Parties in Banker/Customer Agreement
C.
TYPES OF ACCOUNTS
- Types of Accounts
- Opening of Accounts
- Termination of Relationships
D. PROPERTY AND ITS USE AS SECURITY
  (i) Land

Introduction to Tanzanian Land Law
- The Right of Occupancy System
- Disposition of the Right of Occupancy
- Land as a Security - Mortgage of Land

Relevant Local Legislation

1. Land Ordinance - Cap. 113
2. Land Registration Ordinance - Cap. 334
3. Land Law (Conveyacing) - Cap. 114
4. Land Regulations - 1948
5. Registration of Documents - Cap. 117
6. Companies Ordinance - Cap 212.
7. Business Names – Cap 213.
  (ii) Other Securities: An Overview
E. CHEQUES AND OTHER MEANS OF PAYMENT
  - Meaning and Characteristics of a Cheque
- Crossing of a Cheque and the types of crossings
- Types of Holders
- Collection of Cheques and Liability ensuring therefore
- Paying Cheques
- Cheque guarantee cards and credit cards

Relevant Statues:

1. Bill of Exchange Ordinance Cap. 214(2)
2. Cheques Act, 1969
F. THE LAW OF TORT RELEVANT TO BANKERS
 

- Meaning and characteristics of the Law of Torts
- Specific Torts Conversion; Defamation and Negligence
- Contributory Negligence and Vicarious Liability

  THE EXAMINATION

Time Allowed: Three hours

Examination format:
The paper consists of three sections:
Section A: consists of a number of short answer questions, all of which should be answered for a total of 20 marks.
Section B: consists of two 20-mark questions on cheques and other means of payment, at least one of which should be answered.
Section C: contains four 20-mark questions, at least two of which should be answered.
Recommended Readings

1. TIOB 2003 Principles of Law: Colour Print, Dar es Salaam
2. CIB Study Text: Certificate-Banking Legal Environment
3. Tanzania Land Ordinances: Chapters 113, 117 and 334
4. Freehold Titles (Conversion and Government Leases Act, 1963)
5. David Palfremen: Banking the Legal Environment
6. Jolowicz: Law of Torts