BUSINESS LAW

Unit 1: Introduction and Overview

1
 Headnote

“In a fast changing Zambian political, economic and

social environment, the centrality of the law cannot be
overemphasized. An understanding of the law by those
who will participate in the economic sphere/ business
world in their professional capacities is not only
necessary but imperative!“

2
 What is Law? – Definition, Elements (1)

“The principles and regulations in a community

established by some authority and
applicable to its members (individuals, businesses,
private and public organization),
and enforceable by a judicial decision.”

3
 What is Law? – Definition, Elements (2)

• Provision of Rights, Freedoms and Duties

• Protection against undesirable interference of others
(individuals, businesses, private and public
organisations)
• Prohibition of unlawful activities

„Law is a formal and organized mechanism of social

control.“

4
 What is Law? – Approaches (3)
The question „What is Law?“ in the context of Business Law in
Zambia could be approached in 3 ways:

• Understanding of the government

• Look at the background of the Zambian legal system
• Understanding of the meaning of Business Law in the
Zambian context

5
 Understanding Government
• Latin „gubernare“ = „to govern“ or „to manage“
• Government consists of a group of persons, which was
elected by a particular society
• Sole purpose is managing and protecting the rights
and freedoms of the said society in order to establish
a fair and just society based on a sound economy

6
The 3 branches of Government (1)
The executive

The legislative

The judicial branch

7
 The 3 branches of Government (2)
The executive

• Is supposed to identify aspects in society that need

regulation
• Initiates policies to meet those requirements

8
 The 3 branches of Government (3)
The legislature

• Has the task to enact laws to regulate initiated policies

• This government‘s fundamental function of enacting
laws is done through Parliament as that is its
sovereignty

9
 The 3 branches of Government (4)
The judicial branch

• Interprets and ensures the enforcement of the

enacted laws

10
 Separation of Powers (1)
• Describes a model of governing a state
• Government functions (3 Branches) are supposed to
operate separately
• Firstly in order to prevent a centralisation of too much
power respectively an abuse of power (control
mechanism)
• Secondly to protect the rights and liberties of the citizens
whilst the principle „Rule of Law“ ensures „Separation of
Powers“
11
 Rule of Law (1)
• Second important principle in a democracy is the
„Rule of Law“
• Law should govern the nation (legal compliance)
• Principle refers to the influence and authority of law
within a society, particularly as a constraint upon
behaviour, including behaviour of government officials

12
 Rule of Law (2)
• Enlightment philosopher Locke was the one who said
„freedom in society means being subject only to laws
made by a legislature that apply to everyone “
• Rule of law implies that every person is subject to the
law, including people who are lawmakers, law
enforcement officials as well as judges (“everyone has
to play by the same rules”)
• The Rule of Law stands in contrast to a dictatorship
where the rulers are held above the law
13
 Separation of Powers (2)
• Principle “Separation of Powers” was already
embedded in Greek Philosophy

Aristotle mentioned the „Mixed Government“

as a combination of Democracy, Aristocracy
and Monarchy to make their respective
degenerations impossible
14
 Separation of Powers (3)
• Aristotle “Mixed Government” – Terms
Democracy
government by the people
Aristocracy
privileged people/ elite rules
Monarchy
supreme power held by a monarch
15
 Separation of Powers (4)
• Later Separation of Powers was mentioned by the
Enlightenment Philosophers John Locke and Baron de
Montesquieu
They emphasized the need for an independent judicial
system that conducted its functions independent of
the executive
This was and still is fundamental in preventing the
abuse of power by the executive

16
 Separation of Powers (5)

• Courts became independent and could ideally provide

„checks and balances“ on the executive‘s exercise of
its powers

17
 Functioning Government

• For a Government to reach an adequate level of

harmony and for it to function effectively it needs
laws
In the case of Zambia, the Constitution being
Chapter 1 of the Laws of Zambia is the highest law
of the country

18
 Constitution of Zambia (1)

Part I: Section 1 (1) “This Constitution is the supreme law

of the Republic of Zambia and any other written law,
customary law and customary practice that is
inconsistent with its provisions is void to the extent of
the inconsistency.”…

Part I: Section 1 (3) “This Constitution shall bind all

persons in Zambia, State organs and State institutions.”
19
 Constitution of Zambia (2)
• Constitution provides the people‘s rights and
freedoms and regulates the organization of the state,
the parliament and the political parties etc.
• Some important provisions for citizens: The Bill of
Rights / Citizenship / Right to vote / Privacy of the
home and other property / Protection from
deprivation of property without compensation

20
 Constitution of Zambia (3) – Bill of Rights
• Rights and freedoms set out in the Bill of Rights are …
Inherent in each individual and protect the dignity of the person
No discrimination (exception affirmative action)
Freedom of conscience, belief and religion / Freedom of
expression
Economic and social rights (access to health care, decent
housing, clean and safe water, education etc.)
Choice of trade, occupation or profession
Labour relations
Consumer rights … etc.
21
 Constitution of Zambia (4)

• These rights are to be enjoyed by everyone regardless

of his race, place of origin, political opinion, colour,
creed, sex or marital status
• It is important to note, that each person‘s right ends
where another‘s person‘s right begins (!)

22
 Background to the Zambian Legal System (1)

• Zambia was a British colony (1888 – 1964)

• The Zambian legal system is modelled after the
English legal system which is based on English
common law and customary law
• English legal system goes back to the Norman
Conquest in in the 11th Century

23
 Background to the Zambian Legal System (2)
• Whenever the Zambian Law was silent on a particular
principle, the English legal system of law became
applicable as well as the customary law unless it was
contradicting the rules of natural justice, equity and
good conscience
• Natural justice = duty to act fairly / fair procedure
• Equity = based on the principle of evenhanded dealing
• Good conscience = by any reasonable standard

24
 Background to the Zambian Legal System (3)

• Since Zambia’s independence in 1964 there was a

need to have an emphasis placed on home grown
laws and less on foreign laws
• 2011 the Parliament enacted the English Law (Extent
of Application) Amendment Act and clarified the
extent of application of English Law in Zambia

25
Background to the Zambian Legal System (4)
„the English law in force in Zambia shall be the
common law, the doctrines of equity, the
statutes in force in England on the 17th August
1911 and any other statutes passed in England
after 17th August 1911 which apply or shall
apply to the Republic by virtue of an Act of
Parliament“
26
 Background to the Zambian Legal System (5)

• Zambian Legal system still has access to the

practice and procedure pertaining in England
albeit in a restricted manner as stated above
• Zambian Legal system therefore is called a
“mixed legal system” (see the following chart)

27
28
 Key role of Law in Zambia (1)

• Law plays a key role in establishing and

maintaining political, economic, social,
organizational and legal structures which serve
also as checks and balances in every society
respectively every business world

29
 Key role of Law in Zambia (2) - Examples
• Political – Political Parties + Opposition; Anti
Corruption Commission – ACC > Anti Corruption Act
• Economic – Board of Directors in companies =
control committee
• Social – Laws restrict anti-social behaviour > e.g. sale
of harmful products or misleading business practises
(e.g. wrong labelling); controlled by the Competition
& Consumer Protection Commission - CCPC > The
Competition & Consumer Protection Act

30
 Key role of Law in Zambia (3) - Examples
• Organizational – Companies allow labour unions
to operate (organized association of workers
formed to protect rights and interests)
• Legal – the failure to follow laid down
procedures may be questioned and legally
enforced by the public (e.g. through reports to
the relevant commission or the courts)
31
 What is Business law? (1)
• A substantive law that regulates businesses (including
their registration, formation and their management)
and oversees commercial transactions between
business entities (B2B) and between business entities
and their clients
“Provides the general principles of law relating to
businesses and it defines the rights and
responsibilities that a business may entail”
32
 What is Business law? (2)

• Different relevant branches of business law

result in many statutory obligations for Zambian
business operators (!)

33
 What is Business law? (3)

• Business registration:
• Obligation to register every business in Zambia with
the Patents and Companies Registration Agency
(PACRA) accordingly to The Companies Act 2017
(NEW!) or the Registration of Business Names Act
Chapter 389 of the Laws of Zambia

34
 What is Business law? (4)
• Payment of taxes:
• Zambian businesses are obliged to pay various taxes to
the Zambia Revenue Authority according to the Zambia
Revenue Authority Act Chapter 321, e.g. the Income Tax
Act Chapter 322 and the Value Added Tax Act Chapter 331
of the Laws of Zambia etc.
• every business must obtain a Taxpayer Identification
Number (so called TPIN) for tax purposes

35
 What is Business law? (5)

• Licences:
• Businesses that require licences to trade or to
manufacture must obtain the licences before they begin
to conduct their businesses according to The Trades
Licensing Act Chapter 393 of the Laws of Zambia

36
 What is Business law? (6)

• Employment:
• Businesses that wish to engage human resources in
Zambia have an obligation to abide by the provisions of
the Employment Act Chapter 268, the National Pension
Scheme Authority (NAPSA) Act Chapter 256, the Workers‘
Compensation Act Chapter 271 and the Minimum Wages
and Conditions of Employment Act Chapter 276 of the
Laws of Zambia

37
 What is Business law? (7)

• Aim Business Law:

• to bring uniformity into the business world; all
businesses are guided and governed by the same
rules and regulations; in that way order is
maintained and standards can be developed

38
 Main attributes of a good legal system
• Certainty or predictability (law should not be ambiguous; should be
known by everyone; written laws versus unwritten laws)
• Comprehensiveness (all potential problems and disputes re covered
by the law)
• Simplicity (law should be easily understood by its applicants)
• Accessibility (legal process should be inexpensive)
• Flexibility (good law must be flexible to keep up with political,
economical and social dynamics)
• Moral values (legal system should strive to conform to the moral
values of the society it serves)
39
 Types of law (1)
International law and National law

• International law:
concerned with relations and disputes between nations
• National law:
applies within the country

40
 Types of law (2)

National law

can be categorised as

Public law (incl. Criminal law) and Private law

41
42
 Types of law (3) – Public Law

Public law
involves the state or government in some way, while private
law is concerned with disputes between private individuals or
businesses

43
 Types of law (4) – Public Law

Constitutional law
Bill of Rights; Organisation of the state and
government; Elections; Disputes which arise over
such matters
Administrative law
Controls how ministers of state and public bodies
such as local councils should operate; often a result
of subordinated/ delegated legislation
44
 Types of law (5) – Criminal law
• Criminal Law
• Describes the types of behaviour which are forbidden at
the risk of punishment
• The Penal Code Act Chapter 87 of the Laws of Zambia
defines numerous crimes and offenses and determines the
respective punishment
• the state has the right to prosecute and the court will
punish the defendant for the offense, because he/she has
committed a crime (e.g. crimes such as murder, assault,
robbery, theft, housebreaking etc.)
45
 Types of Law (6) – Criminal Law

• Procedure: in court the parties are the prosecution, the

accused and the judge; if the accused is found guilty,
he/she is sentenced by the judge/magistrate; if he/he is
not proved guilty, he/she is acquitted
• more serious criminal cases are dealt with by judges at
High Court
• less serious offences (the overwhelming majority) are
dealt with by magistrates at the Subordinate Court
46
 Types of law (7) – Private law
Private law
• Involves the relationship between individual
citizens, or between legal entities (e.g. companies),
or between citizens and legal entities
• Legal mechanism through which individuals and
legal entities can assert claims against each other
and have their rights adjudicated and enforced

47
 Types of law (8) – Private law
• Private law is concerned with private litigation, such
as contractual issues, disputes concerning property,
trespassing etc.
• Government‘s role in reference to private law is to
establish and maintain the legal framework and
institutions through which any legal issue or dispute
arising may be adjudicated

48
 Types of law (9) – Private law
• Procedure: the plaintiff or claimant issues a
statement of claim, setting out the facts he alleges
against the defendant and asking for damages or
other remedies (e.g. Mulenga v Smith)
• the defendant puts in his defences to the allegations
of the complainant
• Judge considers the facts/ evidences and issues the
judgement/ decides the verdict
49
Types of law (10) – Branches of Private law

Law of contract
Law of tort
Company Law / Employment Law /
Competition Law / Intellectual
Property Law etc.
Family law / Law of Succession
50
 Sources of Law in Zambia (1)
• Sources of law = provide the authority for judicial decisions and
for legislation
• Zambia does not have a single codification containing its laws;
Laws in Zambia are drawn from a variety of historical and
modern sources, such as …
• Constitution
• Legislation
• Common law and Equity
• Judicial precedent
• Customary law …
51
 Sources of law in Zambia (2) - Legislation

• Refers to written laws that have been passed by

parliament and have been assented to by the
President > these laws establish certain courses of
conduct which certain groups of people/parties must
adhere to

• Parliament as the law-making body has been and is

still a fundamental source of law
52
 Sources of law in Zambia (3) - Legislation

• Term legislation covers also subordinate legislation

(also called delegated legislation) which refers to laws
passed by other bodies to which the parliament has
validly delegated such legislative powers, these
include statutory instruments, local laws / municipal
bye-laws etc.

53
 Source of law in Zambia (4) – Legislation
• Laws coming from legislation are the sources of law
which can prevail Common law or Equity rules, if
there is a conflict between them
• They can also be used as a tool to abolish or amend
Common law rules which have outlived there
usefulness

54
 Source of law in Zambia (5) – Legislation

• Law-making process in Zambia > SEE THE VIDEO!

55
 Source of law in Zambia (6) – Legislation
• the method of subordinate legislation is also
relevant for the field of Business law
• A number of company statutes, insolvency
statutes and consumer statutes give power to
the government Ministers and their civil
servants to make detailed rules and orders (this
work is not done in Parliament)
56
 Source of law in Zambia (7) - Common Law
• The historical origins of the „Common Law“ lie in the legal
system of England, which was established in 11th Century,
after William the Conqueror conquered England (referred
to as the Norman Conquest)
• William established a strong centralized power
• Judges were sent by the King around the country to
administer justice without an existing codification of law
• The judges while administering justice referred to customs
which differed from region to region
57
 Source of law in Zambia (8) - Common Law
• It took time till the judges developed common general
principles
• A slow formulation of the common law took place
• Judges started to look at previous decisions made by other
judges for guidance in order to maintain consistency (cases
with the same subject-matter)
• To maintain this consistency it was essential, that judges‘
decisions were recorded (beginning of the law reporting,
which is still in practice today)
58
 Source of law in Zambia (9) - Common Law
• In former times, cases in the common law courts
could only be started by use of a specific document
referred to as a „writ“
• The plaintiff/claimant who had to procure the writ at
an royal office was compelled/obliged to use this type
of a claim form in order to commence a legal action
• For this purpose different writs were created

59
 Source of law in Zambia (10) - Common Law
• System was very formal > Maxim was: „No writ, no
remedy!“
• Problem: not all causes of action from people‘s real
life were covered by an appropriate writ
• This led to a deficient system of legal protection
• Strict formalism resulted in injustice and hardship
• “Doctrine of Equity” was developed
60
 Source of law in Zambia (12) - Equity
• Equity was a parallel to the Common Law
established system of jurisdiction (before 1873)

• Administered by the Lord Chancellor on behalf

of the Crown to improve the harshness and
rigidity of Common Law

61
 Source of law in Zambia (13) - Equity

• Common Law only recognized certain types of

cases; special forms (“writs”) needed to be
filled by plaintiffs/claimants

• Only remedy which Common Law Courts could

give was „damages“ (a sum of money), which
was just not practical enough
62
 Source of law in Zambia (14) - Equity

• Equity brought more solutions and more fairness

• Chancery Courts provided now remedies in equity
such as
Order of injunction - a judicial order that restrains
a person from beginning or continuing an action
threatening or invading the legal right of another, or
that compels a person to carry out a certain act
63
 Source of law in Zambia (15) - Equity
 Order of specific performance - order of a court
which requires a party to perform a specific act
(usually what is stated in the contract; e.g. supply of
goods)

Order of rectification - is a remedy whereby a

court orders a change in a written document to
reflect what it ought to have said in the first place
(correction)
64
 Source of law in Zambia (16) - Equity
Order of rescission – is the defined as the unmaking of
the contract or the unwinding of a transaction/ reverse
transaction; is done to bring the parties, as far as
possible, back to the position in which they were before
they entered into a contract

Order of restitution - is designed to restore the injured

party or the party who suffered damages, to the
position they were before the formation of the contract
65
 Source of law in Zambia (17) - Equity

• Conflict between the rules of Equity and Common

Law rules arose but the two courts merged in 1873
• Finally it was also decided, that in cases with
reference to the same subject-matter the rules of
Equity should prevail
• Equity maxims are still relevant today (!)

66
Source of Law in Zambia (18) – Equity maxims
• „Equity look to the intention and not the form“ - It
would be fair to look at the intention rather than
the fact that parties got formalities wrong

• „He who comes to equity must come with clean

hands“ - An equitable principle or remedy will not
be granted to a plaintiff/claimant who has not acted
fairly
67
Source of Law in Zambia (19) – Equity maxims
• „Delay defeats Equity“ - This means that a
plaintiff/claimant must not wait too long before
making a claim as this might lead to unfairness to
the other party

• „Equity will not suffer a wrong to be without a

remedy“ - This maxim allows Equity to continue to
develop, e.g. new remedies when needed
68
 Source of law in Zambia (20) - Judicial Precedent

• Judicial Precedent forms a crucial part of the law of

Zambia
• Developed by judges who issued opinions and
interpreted laws when deciding cases
• Creation of principles which became precedent for
later judges deciding similar cases

69
 Source of law in Zambia (21) - Judicial Precedent

• Decisions of superior courts are therefore binding to

lower courts, not the other way around (!)
• Judicial precedent have been justified for bringing
certainty and uniformity to the law and have been
blamed for causing rigidity of legal systems,
preventing development of the law

70
 Source of law in Zambia (22) – Judicial Precedent

• the doctrine of precedent includes both advantages

and disadvantages
• PRO: (1) Efficiency – same legal problem needs not to
be solved twice, saving cost and time,
(2) Predictability of legal decision-making, easier for
lawyers to advise clients,
(3) Justice – people are treated alike in parallel
circumstances
71
 Source of law in Zambia (23) – Judicial Precedent

• CONS/ CRITICISIMS: (1) Unconstitutionality – Violation of

the principle of “Separation of powers”, Parliament should
decide/determine and reform the law, not the judges,
(2) Risk of judicial laziness – Judges may be prevented
from taking responsibility for thinking through solutions to
legal problems,
(3) Risk of stagnation in the law – It‘s a backward-looking
rule in a way, could stifle creativity in decision-making

72
 Source of law in Zambia (24) – Customary law
• Custom is a rule which is not written but has the traditional
consent of a particular district, class or tribe > “Custom is a
traditionally accepted norm of conduct” (e.g. Marriage
contracted under Zambian laws and traditions, where “lobola”
is paid and other required procedures has been followed etc.)
• In Zambia the Local Courts use Customary law to administer
justice
• Traditional courts in rural areas apply local customs as well
(these courts are not recognized as being part of the
established court structure in Zambia)
73
Source of law in Zambia (25) – Customary law
• In early times in England custom was taken by judges
and turned into Common law
• This does not apply for mercantile customs (customs
of the merchants), which were developed mainly
independent from the Common law
• Their customs developed for example into Lex
Mercatoria or the new Law Merchant

74
 Source of law in Zambia (26) – Customary law
Lex Mercatoria (1)
• body of commercial rules and principles used by merchants
throughout Europe with local variation during the Medieval
period
• commercial practices which responded to the needs of the
merchants and was considered a best practice
• It was enforced through a system of merchant courts along the
main trade routes
• A distinct feature was the reliance by merchants on a system
developed and administered by themselves

75
Source of law in Zambia (27) – Customary law
Lex Mercatoria (2)
• States or local authorities did not interfere a lot in
internal domestic trade (freedom of the market)
• Under Lex Mercatoria trade flourished and states took
in large amounts of taxation
• BUT: the concept of Lex Mercatoria is by nature
customary and solely consists of customary commercial
rules and principles

76
Source of law in Zambia (28) – Customary law
Lex Mercatoria (3) – Disadvantages/Criticism (1)

• No binding force as it is not enacted in Parliament

or endorsed in an international convention (it also
falls from the traditional definition of law)
• Voices criticize that the concept is vague and
incomplete
• No legal answers to relevant issues as validity,
capacity and contract form
77
Source of law in Zambia (29) – Customary law
Lex Mercatoria (4) – Disadvantages/Criticism (2)

• Trade usages (= trade customs) fall under the party

autonomy (freedom of contract) > parties might
just exclude the application of trade usages in the
contract
• In short: It‘s not a legal system as such (!)

78
Source of law in Zambia (30) – Customary law
Lex Mercatoria (5) - Today
• Despite of the criticism crucial customs of merchants
relating to negotiable instruments and contracts, including
the Sale of Goods became part of the Common law and
were later translated for example into Sale of Goods Act
(1979), for the Business law a very relevant codification
• But a single codification/collection of rules called “Lex
Mercartoria” does not exist today (different countries yet
try to preserve some rules and principles and summarize
them in books > e.g. “TransLex Principles” in Germany

79
80
 The Zambian Judicial System (1) - Judicature
• The judicature shall be independent and subject to
the constitution only (Separation of Power)
• It has jurisdiction in all public, criminal and civil
matters, including matters relating to the constitution
• Distinguishing feature amongst the courts in Zambia is
their jurisdiction and the procedural rules that tend to
be different in each court

81
 The Zambian Judicial System (2) – Ministry of
Justice

• Ministry of Justice plays a key role in the

dissemination of justice in the judiciary
• The Ministry has the Department of the Director of
Public Prosecution that prosecutes criminal matters
in the High Court as well as Appeals in the Supreme
Court on behalf of the People of Zambia

82
 The Zambian Judicial System (3) - Lawyers

• Lawyers who work in the Ministry of Justice are called

State Advocates (no private practice permitted)
• Lawyers in private practice are referred to as “Legal
Practitioners” or “Counsel” or “Advocates” > they
need a practicing certificate required by the Law
Association of Zambia

83
 The Zambian Judicial System (4) - Lawyers

• Lawyers in private practice are playing a major role since

they defend members of the public in all legal proceedings
> Corporate entities more and more have in-house lawyers
to handle their legal issues
• In court before the bench of the judge applies a strict dress
code (e.g. sober colours; suits in black, grey or blue; shirts
plain white) > Lawyers are expected to be polite and
disciplined since they are officers of the court (e.g. genuflect
before Judges and Magistrates)
84
 The Zambian Judicial System (5) - Lawyers

• Lawyer who practices for 10 years qualifies to be a

High Court Judge and can apply for the position
• Majority of the Judges are qualified lawyers > a few
Judges are not lawyers but were magistrates and have
“risen through the ranks”

85
 The Zambian Judicial System (6) - Legal Aid
Board

• Establishment of a Legal Aid Board under the Legal

Aid Act Chapter 34 of the Laws of Zambia > for
members of the public without adequate means
• Legal Aid Board handles criminal and civil matters

86
The Zambian Judicial System (7) - Proceedings
• Proceedings that are commenced in the Zambian judiciary
have to be filed in the relevant registry > Each court has got
it’s own registry
• Registries are run by clerks who charge an amount for each
document that is filed
• Court documents are usually filed in “fours”, meaning 4
copies > Court, Lawyer, Plaintiff/Claimant, Defendant
• Each court has got a civil registry and a criminal registry

87
The Zambian Judicial System (8) - Proceedings
• The common feature in all the courts is the fact that all
evidenced is adduced viva voce, and on oath or affirmation
whichever is applicable
• Viva voce = “by word of mouth”
• Once the parties and relevant witnesses have testified,
either the lawyers on both sides or the parties (if appearing
in person) submit submissions (oral or written) to the bench
which then prepares the judgement > in criminal matters a
sentence is passed after judgement
88
89
 The Zambian Judicial System (9) - Courts
• Constitutional Court
• Supreme Court
• High Court / Commercial Court / Industrial Relations
Court
• Subordinate Courts
• Local Courts
• Small Claim Courts
90
 Constitutional Court
• Establishment of the Constitutional Court is prescribed in
Clause 127 of the Constitution of Zambia
• Youngest Court in Zambia > established in 2016
• Jurisdiction to hear matters related to a.o.
Interpretation of the Constitution
Violation or contravention of the Constitution
President, Vice-President or an election of the
President
Election of Members of Parliament and councillors …
91
 Supreme Court
• Appellate court under the Supreme Court Act Chapter 25 of
the Laws of Zambia
• Jurisdiction to hear and determine appeals in both civil and
criminal matters
• Building in Lusaka (right next to the High Court), but the
Supreme Court also sits in Ndola (uses the building of the
High Court there)
• The appeals which are heard in this court are from the High
Court, Industrial Relations Court and the Commercial Court
• Chief Justice is the highest Judge; Counsels can appear in
this court after of 3 years of practice
92
 The High Court
• Superior Court > Jurisdiction of the Judge is subject to the
High Court Act Chapter 27 of the Laws of Zambia
• High Court has got court buildings in Lusaka, Ndola,
Livingstone, Kitwe and Kabwe, but sits also in Solwezi and
other towns
• High Court hears both criminal and civil matters both in
open court and in chambers, but as provided by the High
Court Rules
93
 The Commercial Court
• Specialized commercial court division of the High Court
• Jurisdiction to hear and determine commercial matters such
as those relating to insurance, competition, mortgage,
contracts winding up of companies, taxation, bankruptcy,
banking and financial services
• When proceedings are instituted in the High Court, those
matters that are supposed to be heard by the Commercial
Court are transferred to the Commercial List accordingly

94
 The Industrial Relations Court (IRC)
• Sole jurisdiction relates to the resolution of industrial relations
matters or employment disputes > It‘s governed by the Industrial
and Labour Relations Act Chapter 269 of the Laws of Zambia
• The proceedings in the IRC are commenced by a Complaint and
the respondent files an Answer > Complaint filed within 90 days
of the occurrence of the event; and a judgement being delivered
within one year after hearing the case
• IRC not bound to the rules of evidence in civil or criminal
proceedings; Main objective is to do justice between the parties
before it; Appeal at the Supreme Court possible
95
 The Subordinate Court (1)
• Governed by the Subordinate Courts Act Chapter 28 of the
Laws of Zambia
• This court is constituted in each District in Zambia
• It can only exercise its jurisdiction within the limits of the
district within it is constituted
• Subordinate Courts of the first class are presided over by
either the Principal Resident Magistrate, a senior resident
magistrate or a magistrate class one (mainly lawyers by
profession) > Subordinate Courts of the second and third
class are presided over by magistrates of the second and
third class respectively (mainly passed magistrate‘s courses)
96
 The Subordinate Court (2)
• Jurisdiction of the Subordinate Court of the first class in civil
matters is subject to Section 20 (1) of the Subordinate Courts Act
with the Principal Resident Magistrate (PRM) having the highest
jurisdiction of not more than 30.000 ZMW (claims above this
amount must be instituted in the High Court or Commercial Court)
• In criminal matters, the jurisdiction of the court is governed by the
Criminal Procedure Act Chapter 88 of the Laws of Zambia as well
as the Subordinate Courts Act (Examples: Theft and smaller
crimes)
• Decisions are Judgements or Rulings (Appeal to HC and then SC)
97
 The Small Claims Court (1)
• Is governed by the Small Claims Courts Act Chapter 47 of the
Laws of Zambia
• Is composed of an arbiter sitting alone whose aim is to reconcile
the parties
• It is therefore not bound by the rules of evidence but applies law
and equity > evidence is given on oath or affirmation
• Proceedings in the SCC are commenced by a Notice of Claim filed
before a clerk of court
• Its jurisdiction is limited to liquidated claims of not more than four
thousand fee units and is exercised by way of arbitration
98
 The Small Claims Court (2)
• The court has got the power
to make final award, or order the restitution of any
property or order the specific performance of a
contract other than a contract of personal service;
or make any other order which the justice of the
matter requires
To enforce its own award and may where
applicable issue a warrant of distress
99
 The Small Claims Court (2)
• Appeals at High Court on points of law only within 30
days of the decision
• Arbitrators are appointed by Judicial Service
Commission > part-time > they must be legal
practitioners of not less than 5 years standing at the
bar
• No Legal representation since proceedings are simple
and informal
100
 The Local Court (1)
• Is governed by the Local Courts Act Chapter 29 of the Laws
of Zambia and administers the African customary law inter
alia; and in so far it is not repugnant (widersprechend) to
natural justice or morality or incompatible with the
provisions of any written law
• Lawyers have no right of audience before local courts
• Jurisdiction is territorial in nature > Grade A LCs cases up to
3.020 ZMW > Grade B LCs cases up to 2.500 ZMW

101
 The Local Court (2)
• Section 5 (1) of the Local Courts Act restricts the
jurisdiction as follows: „…no local court shall be given
jurisdiction – (i) to determine civil claims, other than
matrimonial or inheritance claims, of a value greater
than one hundred and twenty fee units; or (ii) impose
fines exceeding forty penalty units; or (iii) to order
probation or imprisonment for a period exceeding two
years; or (iv) to order corporal punishment in excess of
twelve strokes of the cane.“
102
 The Local Court (3)
• The court shall be constituted by a presiding justice
• The court may hear a civil matter within its jurisdiction
provided the defendant is a resident of the area or the cause
of action has arisen in the area > Real property matters shall
be heard in the local court situated in the area where the
property is situated
• Jurisdiction over crimes committed in the area (not where
death is alleged to have occurred or which is punishable by
death); Appeal at the Subordinate Court
103