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LOSSARY

CPA
Certified Public Accountant Examination
Stage:
Foundation F1.2
Subject Title:
Introduction to Law

Revision Guide

LOSSARY

INSIDE COVER - BLANK

CONTENTS

Title

Page

Study Techniques

4

Examination Techniques

5

Assessment Strategy

10

Learning Resources

10

Sample Questions and Solutions

11

Page 2

BLANK

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STUDY TECHNIQUE
What is the best way to manage my time?
•

Identify all available free time between now and the examinations.

•

Prepare a revision timetable with a list of “must do” activities.

•

Remember to take a break (approx 10 minutes) after periods of
intense study.

What areas should I revise?
•

Rank your competence from Low to Medium to High for each topic.

•

Allocate the least amount of time to topics ranked as high.

•

Allocate between 25% - 50% of time for medium competence.

•

Allocate up to 50% of time for low competence.

How do I prevent myself veering off-track?
•

Introduce variety to your revision schedule.

•

Change from one subject to another during the course of the day.

•

Stick to your revision timetable to avoid spending too much time on one topic.

Are study groups a good idea?
•

Yes, great learning happens in groups.

•

Organise a study group with 4 – 6 people.

•

Invite classmates of different strengths so that you can learn from one another.

•

Share your notes to identify any gaps.

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EXAMINATION TECHNIQUES
INTRODUCTION
Solving and dealing with problems is an essential part of learning, thinking and intelligence.
A career in accounting will require you to deal with many problems.
In order to prepare you for this important task, professional accounting bodies are placing
greater emphasis on problem solving as part of their examination process.
In exams, some problems we face are relatively straightforward, and you will be able to deal
with them directly and quickly. However, some issues are more complex and you will need to
work around the problem before you can either solve it or deal with it in some other way.
The purpose of this article is to help students to deal with problems in an exam setting. To
achieve this, the remaining parts of the article contain the following sections:


Preliminary issues



An approach to dealing with and solving problems



Conclusion.

Preliminaries
The first problem that you must deal with is your reaction to exam questions.
When presented with an exam paper, most students will quickly read through the questions
and then many will … PANIC!
Assuming that you have done a reasonable amount of work beforehand, you shouldn’t be
overly concerned about this reaction. It is both natural and essential. It is natural to panic in
stressful situations because that is how the brain is programmed.
Archaeologists have estimated that humans have inhabited earth for over 200,000 years. For
most of this time, we have been hunters, gatherers and protectors.
In order to survive on this planet we had to be good at spotting unusual items, because any
strange occurrence in our immediate vicinity probably meant the presence of danger. The
brain’s natural reaction to sensing any extraordinary item is to prepare the body for ‘fight or
flight’. Unfortunately, neither reaction is appropriate in an exam setting.
The good news is that if you have spotted something unusual in the exam question, you have
completed the first step in dealing with the problem: its identification. Students may wish to
use various relaxation techniques in order to control the effects of the brain’s extreme
reaction to the unforeseen items that will occur in all examination questions.

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However, you should also be reassured that once you have identified the unusual item, you
can now prepare yourself for dealing with this, and other problems, contained in the exam
paper.

A Suggested Approach for Solving and Dealing with Problems in Exams.
The main stages in the suggested approach are:
1. Identify the Problem
2. Define the Problem
3. Find and Implement a Solution
4. Review

1. Identify the Problem
As discussed in the previous section, there is a natural tendency to panic when faced with
unusual items. We suggest the following approach for the preliminary stage of solving and
dealing with problems in exams:
Scan through the exam question
You should expect to find problem areas and that your body will react to these items.
PANIC!!
Remember that this is both natural and essential.
Pause
Take deep breaths or whatever it takes to help your mind and body to calm down.
Try not to exhale too loudly – you will only distract other students!
Do something practical
Look at the question requirements.
Note the items that are essential and are worth the most marks.
Start your solution by neatly putting in the question number and labelling each part of your
answer in accordance with the stated requirements.
Actively reread the question
Underline (or highlight) important items that refer to the question requirements. Tick or
otherwise indicate the issues that you are familiar with. Put a circle around unusual items that
will require further consideration.

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2. Define the Problem
Having dealt with the preliminary issues outlined above, you have already made a good start
by identifying the problem areas. Before you attempt to solve the problem, you should make
sure that the problem is properly defined. This may take only a few seconds, but will be time
well spent. In order to make sure that the problem is properly defined you should refer back
to the question requirements. This is worth repeating: Every year, Examiner Reports note that
students fail to pass exams because they do not answer the question asked. Examiners have a
marking scheme and they can only award marks for solutions that deal with the issues as
stipulated in the question requirements. Anything else is a waste of time. After you have reread the question requirements ask yourself these questions in relation to the problem areas
that you have identified:
Is this item essential in order to answer the question?
Remember that occasionally, examiners will put ‘red herrings’ (irrelevant issues) into the
question in order to test your knowledge of a topic.
What’s it worth?
Figure out approximately how many marks the problem item is worth. This will help you to
allocate the appropriate amount of time to this issue.
Can I break it down into smaller parts?
In many cases, significant problems can be broken down into its component parts. Some parts
of the problem might be easy to solve.
Can I ignore this item (at least temporarily)?
Obviously, you don’t want to do this very often, but it can be a useful strategy for problems
that cannot be solved immediately.
Note that if you leave something out, you should leave space in the solution to put in the
answer at a later stage. There are a number of possible advantages to be gained from this
approach:
1) It will allow you to make progress and complete other parts of the question that you are
familiar with. This means that you will gain marks rather than fretting over something
that your mind is not ready to deal with yet.
2) As you are working on the tasks that you are familiar with, your mind will relax and you
may remember how to deal with the problem area.
3) When you complete parts of the answer, it may become apparent how to fill in the
missing pieces of information. Many accounting questions are like jigsaw puzzles: when
Page 7

you put in some of the parts that fit together, it is easier to see where the missing pieces
should go and what they look like.

3. Find and Implement a Solution
In many cases, after identifying and defining the problem, it will be easy to deal with the
issue and to move on to the next part of the question. However, for complex problems that
are worth significant marks, you will have to spend more time working on the issue in order
to deal with the problem. When this happens, you should follow these steps:
Map out the problem
Depending on your preferred learning style, you can do this in a variety of ways including
diagrams, tables, pictures, sentences, bullet points or any combination of methods. It is best
to do this in a working on a separate page (not on the exam paper) because some of this work
will earn marks. Neat and clearly referenced workings will illustrate to the examiner that you
have a systematic approach to answering the question.
Summarise what you know about the problem
Make sure that this is brief and that it relates to the question requirements. Put this
information into the working where you have mapped out the problem. Be succinct and
relevant. The information can be based on data contained in the question and your own
knowledge and experience. Don’t spend too long at this stage, but complete your workings as
neatly as possible because this will maximise the marks you will be awarded.
Consider alternative solutions
Review your workings and compare this information to the question requirements. Complete
as much of the solution as you can. Make sure it is in the format as stipulated in the question
requirements. Consider different ways of solving the problem and try to eliminate at least one
alternative.
Implement a solution
Go with your instinct and write in your solution. Leave extra space on the page for a change
of mind and/or supplementary information. Make sure the solution refers to your workings
that have been numbered.

4. Review
After dealing with each problem and question, you should spend a short while reviewing your
solution. The temptation is to rush onto the next question, but a few moments spent in

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reviewing your solution can help you to gain many marks. There are three questions to ask
yourself here:
Have I met the question requirements?
Yes, we have mentioned this already. Examiner Reports over the years advise that failure to
follow the instructions provided in the question requirements is a significant factor in causing
students to lose marks. For instance, easy marks can be gained by putting your answer in the
correct format. This could be in the form of a report or memo or whatever is asked in the
question. Likewise, look carefully at the time period requested. The standard accounting
period is 12 months, but occasionally examiners will specify a different accounting period.
Is my solution reasonable?
Look at the figures in your solution. How do they compare relative to the size of the figures
provided in the question?
For example, if Revenue were 750,000 and your Net Profit figure was more than 1 million,
then clearly this is worth checking.
If there were some extraordinary events it is possible for this to be correct, but more than
likely, you have misread a figure from your calculator. Likewise, the depreciation expense
should be a fraction of the value of the fixed assets.
What have I learned?
Very often in exams, different parts of the solution are interlinked. An answer from one of
your workings can frequently be used in another part of the solution. The method used to
figure out an answer may also be applicable to other parts of your solution.
Conclusion
In order to pass your exams you will have to solve many problems. The first problem to
overcome is your reaction to unusual items. You must expect problems to arise in exams and
be prepared to deal with them in a systematic manner. John Foster Dulles, a former US
Secretary of State noted that: The measure of success is not whether you have a tough
problem to deal with, but whether it is the same problem you had last year. We hope that, by
applying the principles outlined in this article, you will be successful in your examinations
and that you can move on to solve and deal with new problems.

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Stage: Foundation 1
Subject Title: F1.2 Introduction to Law
Examination Duration: 3 Hours
ASSESSMENT STRATEGY
Examination Approach
Students are required to demonstrate their understanding of the legal principles, concepts, case
law and legislative provisions that are relevant to the work of an accountant.
Students are presented with both essay and scenario questions. In answering essay-type
questions they are required to demonstrate an ability to analyse and discuss the relevant
concepts. With scenario-based questions, students should identify the material or relevant facts,
discuss the relevant rules of law, apply these rules to the facts and draw appropriate
conclusions. Questions are framed so that students have the opportunity to integrate case law
and/or statutory provisions, as appropriate, in their answers.

Examination Format
The examination is unseen, closed book and 3 hours’ in duration. Students are required to
answer 5 questions out of 7.

Marks Allocation
Each question carries 20 marks. The total for the paper is 100 marks.

Learning Resources – Core Texts
The Contribution of the Rwanda Tribunal to the Development of International Law –– Larissa
J. Van Den Herik - Martinus Nijhoff Publishers
International Criminal Law – Antonio Cassese
Manuals
F1.2 Introduction to Law – Institute of Certified Public Accountants of Rwanda

Useful Websites
(as at date of publication)
http://www.icparwanda.com/
http://www.rra.gov.rw/
http://org.rdb.rw/
http://www.hg.org/1table.html
http://www.un.org/en/law/index.shtml
http://www.geneva-academy.ch/RULAC/national_legislation.php?id_state=185
http://www.minijust.gov.rw/moj/default.aspx?UR=http://www.google.co.uk/url?sa=t&rct=j&q=
ministry%20of%20justice%20rwanda&source=web&cd=1&ved=0CEYQFjAA&url=http://ww
w.minijust.gov.rw/&ei=6LL6T7miDoel0AWJlKj8Bg&usg=AFQjCNFQpYHWUIZJOA6pOV
DbAKBna5Gn0g
http://www.amategeko.net/index.php?Parent_ID=3&Langue_ID=An
Page 10

REVISION QUESTIONS AND
SOLUTIONS
Stage:
Foundation F1.2
Subject Title: Introduction to Law

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F1.2 – Introduction to Law
Revision Questions & Solutions
Question 1
Explain the differences between criminal and civil law
Solution 1
Criminal law consists of rules prohibiting anti-social conduct as well as certain deviant
behaviour. It aims to shape people’s conduct along lines which are beneficial to society, by
preventing them from doing what is bad for society. In Rwanda as elsewhere, these prohibitions
are listed in the penal code and a number of subsidiary legislation. Also forming part of the
criminal justice system are courts, which adjudicate questions of criminal liability, as well as
the police force and other enforcement agencies which exist not only to maintain law and order
but also to detect and prosecute violations against the criminal law. It is the society through
Government employees called public prosecutors that bring court action against violators. If a
person is found guilty of the crime such as theft, the person will be punished by imprisonment
and or a fine. When a fine is paid, the money goes to the side of the government, not to victim
of the crime.
Civil law lays down rules, principles and standards which create rights and duties and specifies
remedies to back up those rights. The duties are owed by one person (including corporations) to
another. Actions for the breach of civil duty must be brought by the injured party himself or his
representative. Generally, the court does not seek to punish the wrongdoer but rather to
compensate the injured party for the harm he or she has suffered. For instance, if someone
carelessly runs a car into yours that person has committed a civil wrong (tort) of negligence. If
you have suffered damages you will be able to recover to the extent of the damages suffered.
Note that although civil law does not aim to punish, there is an exception. If the behaviour of
someone who commits a tort is outrageous, that person can be made to pay punitive damages
(also called exemplary damages). Unlike a fine paid in a criminal case, punitive damages go to
the injured party.
Sometimes, the same behaviour can violate both the civil law and the criminal law. For
instance, a person whose careless driving causes the death of another may face both a criminal
prosecution by the state and a civil suit for damages by survivors of the deceased. If both suits
are successful, the person would pay back society for the harm done through a fine and or a
sentence, and compensate the survivors through the payment of the money damages.

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Question 2
Sources of national laws in Rwanda are ranged according to their hierarchy, what are the
hierarchy laws and explain each of them in detail?

Solution 2
The laws are ranged, according to their hierarchy, as following:
- The constitution;
- The organic law;
- The ordinary law;
- The Decree law, etc.
The constitution
At the national level, the constitution comes at the first position. The constitution is a set of
rules which form the fundamental law of a state with which all other laws have to be in
conformity. This means that when there is a conflict between constitutional provisions and any
other law of the country, the former prevails.
For G. Burdeau, the constitution occupies a central place in a system of the rule of law. A
certain philosopher M. Kamto wrote:
“A democracy should not be a government by peoples, but a government by the law”. This is
what is called the rule of law. In this sense, it coincides with a “democratic state” on condition
that “the law really expresses the general will of the public”.
Rwanda has only one constitution, which was adopted through the referendum of 26th May,
2003.
The organic laws
Besides the constitution, there are organic laws, which rank immediately below the constitution.
Within the hierarchy of laws, organic laws come after the constitution.
An organic law is adopted with a view to specifying or completing the constitution and other
laws. There are organic laws in Rwanda. This is the case of the organic law No 08/96 of
30/08/1996 on the organization of prosecutions of crimes constituting the crime of genocide or
crimes against humanity committed between 1st October 1990 and 31/12/1994, the organic law
on the organization and functioning of Gacaca jurisdictions, and so many others.
According to 93(6) of the Rwandan constitution, organic laws shall be passed by a majority
vote of three fifths of the members present in each chamber of Parliament.
Organic laws have a legal force superior to ordinary laws. It is the constitution, which
determines the areas reserved for organic laws. We can cite the:
- Conditions of acquisition, retention, enjoyment and deprivation of Rwandan nationality
(art. 7 const.)
- The organization of education in Rwanda (art. 40 const.)
- The modalities for the establishment of political organizations, their functioning, the
conduct of leaders, the manner in which they shall receive state grants as well as the
organization and functioning of the forum of political organizations (art. 57(2) const.)
- The internal regulations concerning each chamber of parliament (art. 73 const.) i.e. each
chamber of parliament shall adopt an organic law establishing its internal regulations.
- The conditions and the procedures by which parliament controls the actions of the
government.
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- The organization and jurisdiction of courts.
Ordinary laws
Ordinary laws, which are most frequent, are voted by the absolute majority of seating
parliamentarians of each chamber. It is the constitution that determines the relevant areas for
ordinary laws. These areas are many compared to those of organic laws. The quorum required
for each chamber of parliament is at least three fifths of its members (art.66(1) const.).

Decree Law
In case of the absolute impossibility of parliament holding session, the president of the republic
during such period promulgates decree laws adopted by the cabinet and those decree laws have
the same effect as ordinary laws (art. 63(1) Const.).
These decree-laws become null and void if they are not adopted by parliament at its next
session. This is in conformity with article 63(2) constitution.

Question 3
What are the auxiliary sources of law within Rwanda?

Solution 3
AUXILIARY SOURCES OF LAW
The auxiliary sources of law are jurisprudence, doctrine, general principals of law and equity.
1. Custom (as a source of law)
A custom is generally defined as a set of a people’s way of doing things which has acquired an
obligatory force in a given social group and which is practiced over a relatively long time
period. Customs are practices or usages of a given society. Customary law is unwritten. It has to
be considered as legally binding on (obligatory by) the people in the society.
A custom is not created as a written law, a unique act, but by a repetition of similar practices
especially with the conception that it has a binding (obligatory) force. The essential elements of
a custom are therefore.
- The usage
- Binding force
- The social consensus

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- The time in which it is applicable
But the first two are the ones that are most frequently cited as the ones that form a custom. It is
also important to point out that custom can inspire the legislator when modifying or completing
an existing law or when judges are regulating new cases where the existing laws are not clear or
incomplete. Custom can also help for the comprehension of a legal text. However, it is
important to indicate that custom is applicable in the absence of law; and when they are not
contrary to the constitution, laws, regulations, public order and good morals.
These laws are the principal sources of law. Custom is just a subsidiary source of law, in the
sense that they can inspire the judge and help him in the comprehension of legal texts.
2. General principles of law.
These are principles of law common to the legal systems of the world. In Rwanda, examples of
general principles of law are:
-

the principle of double jeopardy
that law provides for the future and does not have a retroactive effect.
The principle of permanence and continuity of the state
It is presumed that no-one is ignorant of the law.

In hierarchy, general principles of law are inferior to the Law. Some of them are already part of
the Rwandan penal code. In general, general principles of law are not as direct a source of law
as the laws they inspire the judge and they are resorted to in the absence of the law.
3. Jurisprudence (Decided case law)
Jurisprudence means the set of decisions rendered by courts and tribunals. In RomanoGermanic legal systems, jurisprudence doesn’t bind the judge. The decisions of courts and
tribunals don’t have a general field of application. Judges’ decisions are only binding on those
parties involved in the case. If a judge is seized with a new case, he is not obliged to comply
with decisions made on similar cases in the past (precedent). This means that in a new case, he
may rule differently from his previous decision.
This led some people to say that jurisprudence is not strictly speaking a source of law.
However, even though the jurisprudence doesn’t have a legal value or a legal binding force, it
exercises an unquestionably factual influence that guides the judge to rule in a given way. We
refer to this influence as defacto authority of jurisprudence .
In a common – law legal system, the situation is different. Jurisprudence does constitute a
binding source of law .we refer to it as Precedent. A common – law precedent has a binding
force on the judge. He cannot easily depart from it.

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4. Doctrine
By doctrine, we mean legal scholars’ opinions on critical questions of law. In the wider sense,
doctrine refers to publications of persons deeply involved in the study of law. These are law
professors, senior judges, eminent lawyers, etc.
Doctrine serves to understand the positive law better, which means those rules applicable in a
given society at a precise time. Doctrine serves also to inspire possible law reforms by
proposing rules that should be enacted by the legislator. Although doctrine is not a principal
source of law, it constitutes a subsidiary impact on the law. It exercises an important influence
even though it is not a binding source of law. It guides the judge by promoting reasons for
deciding in a certain way. On the other hand, doctrine guides the legislator when enacting laws.
He can either consult legal works (publications) of scholars or ask them to participate in the
legal process as experts. The authority attached to doctrine relates somehow to the reputation of
the scholar himself. The more reputable he is in his field and publications, the more his opinion
will be of influence.
In conclusion, one can say that although doctrine is not a principle source of law, it plays a
significant role, as the opinion submitted by eminent lawyers on a subject of law can be useful
in case it is put forward and followed in courts, because it can help in the comprehension of a
legal text.
5. Equity
The regulation of 14 May 1886 foresees that in case there is a matter that is not provided by a
legal text, the disputes without solutions in local customs will be solved according to general
principles of law and equity.
Equity, which is based on the general feelings of justice, allows the judge, in case of silence of
law or a legal gap, to make judgements conforming to common sense and feelings of justice.
The notion of equity has a vague character and the judge is not bound by any certain precise
rule but he has the power to decide according to the circumstances but without arbitrariness
(unfairness) . This means that he has to apply equity with fairness. Certain legal provisions give
examples of how equity can be applied ( art 34,142, of the civil code iii , art.82 of the penal
code )
Equity is not itself a source of law. It is a means available to the judge when he is supposed to
give a judgement without applying a determined legal rule.
Question 4
Write a paragraph on any 3 of the following:1.
2.
3.
4.
5.

Role of Lower Instance Courts
Role of Higher Instance Courts
Role of Higher Court
Role of Supreme Court
Role of Specialized Court
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Solution 4
Lower instance courts
There is established a lower instance court for sector councils. The court is to exercise
jurisdiction within the administrative boundaries of the sector council. In criminal matters lower
instance courts are competent to hear offences whose sentence a term of imprisonment does not
exceed five (5) years. They are not competent to hear offences relating to the violation of traffic
rules.
As regards civil disputes lower instance courts have original jurisdiction to hear and determine:
•
Disputes between natural or artificial (legal) persons whose monetary value does not
exceed three million (3,000,000Rwf), except civil actions related to insurance as well as
those seeking damages for loss occasioned by an offence tried by another court:
•
Disputes related to land and livestock and their succession:
•
Disputes related to civil status and family
•
Disputes related to immovable property other than land which does not exceed 3 million
Rwf of monetary value and its succession.
•
Disputes related to movable property which does not exceed 3million Rwf of monetary
value and its succession.
Note that judgments rendered by lower instance courts in both criminal and civil matter can be
reviewed by the same court or appealed to the higher instance courts. The exception is cases
whose monetary value does not exceed Rwf fifty thousand (50,000). In this case the lower
instance court shall serve as the final court of appeal.
Higher instance courts
There is a higher instance court in district councils. Each court has specialized chambers: the
juvenile chamber, the administrative chamber and the labour chamber.
In criminal matters higher instance courts shall have jurisdiction to try offences whose sentence
is a term of imprisonment exceeding five (5) years except where the law reserves the offence to
other courts; they have jurisdiction to try traffic offences and person placed in the first category
accused of crimes of genocide and other crimes against humanity committed between 1st Oct.
1990 and 31st Dec. 1994.
In civil cases, higher instance courts have jurisdiction to hear cases on the first instance that are
not triable by other courts. They shall have competence to hear on first instance case related to
insurance regardless of the value of the claim.
Note that the specialized chambers of higher instance courts shall hear administrative cases
relating inter alia, to actions for damages arising from contractual liability, government officials
and its parastatals.
In its appellate jurisdiction the court can hear appeals against judgment rendered on first
instance by lower instance courts within their respective jurisdiction.
The provincial or city of Kigali court can review its judgment or appeal to the Higher court.

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The Higher court
There is established a higher court whose seat is in the city of Kigali. Its jurisdiction covers the
entire territory of the republic. The higher court shall have four (4) chambers in other parts of
the republic namely: Musanze, Nyanza, Rwamagana and Rusizi. The jurisdiction of the
chamber that operates at Musanze is equal to the jurisdiction of the higher instance court in
Musanze and Rubavu. The jurisdiction of the chamber that operates at Nyanza is equal to the
jurisdiction of the higher instance court Muhanga, Huye and Nyamagabe. The jurisdiction of
the chamber that operates at Rwamangana is equal to the jurisdiction of the higher instance
court of Ngoma and Nyagatare. The jurisdiction of the chambers that operates at Rusizi is equal
to the jurisdiction of the higher instance court of Rusizi and Karongi. Finally cases originating
from the territorial jurisdiction of the higher instance court of Nyarungenge, Kabuga and
Gicumbi shall be tried at the seat of the high court of the republic.
The high court exercises both original appellate jurisdictions. In the exercise of the original
jurisdiction, the high court has competence to hear specific criminal cases, administrative cases
and civil matters; its jurisdiction is limited to the execution or enforcement of authentic deeds
executed by foreign authorities as well as foreign judgments. In the exercise of its appellate
jurisdiction, the higher court has jurisdiction to hear appeals from civil cases heard on first
instance by a higher instance court. It also hears specific appeals on second instance from
higher instance courts. In addition, it hears appeals from decisions taken by arbitration
tribunals.
The high court also hears appeals from criminal cases tried on first instance or appellate level
from higher instance courts.
Note that the high court of the republic has competence to review its own decision. A
dissatisfied party can party can appeal to the Supreme Court.
Supreme Court
The Supreme Court is the highest court in the Republic of Rwanda. The Supreme Court directs
and co-ordinates the activities of the lower courts. The court has jurisdiction over the territory
of the Republic of Rwanda. Its decision is not subject to appeal except in terms of a prerogative
of mercy or the revision of a judicial decision.
The Supreme Court exercises ordinary and special jurisdiction. In the exercise of ordinary
jurisdiction the court is the court of last resort for appeal for trials heard by the high court of the
republic in the first degree and in the second degree provided inter alia, the award of damages
equals or exceeds twenty million francs (20,000,000) or the subject matter in disputes equals or
exceeds twenty million francs (20,000,000).
In the exercise of its special jurisdiction the supreme court has, inter alia, exclusive jurisdiction
to try in the first and final degree, the president of the republic, the president of the senate, the
president of the chamber of deputies, the president of the supreme court and the prime minister
for offences committed during their terms of office, whether such offences relate to the exercise
of their public duties or their private matters, regardless of whether they are still or have ceased
to hold office.

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Specialized courts
a) Military courts
Military tribunals have competence to try all offences committed by all military personnel
except offences which constitute a threat to national security and murder committed by soldiers.
They also have competence to try all military personnel accused of the crime of genocide and
crimes against humanity committed between October 1st and December 31st 1994 that places
them in the first category.
Judgments rendered by a military court may be reviewed by the same court or appealed to the
military high court.
The military high court exercises both original and appellate jurisdiction. In that exercise of its
original jurisdiction, the military high court shall try all offences which constitute a threat to
national security and murder committed by soldiers. However, if, during judgment, the court
finds that the elements of the offences constitute manslaughter instead of murder, it shall
nonetheless hear the case.
In its appellate jurisdiction the court hears appeals from cases tried by the military court. Cases
heard in the first instance by the military high court may be reviewed by the same court or
appealed to the Supreme Court. If the case was heard in the second instance by the military high
court, the case will be appealed to Supreme Court provided the sentence passed by the military
high court is equal to or exceeds ten (10) years of imprisonment.

b) Commercial courts
Commercial courts have a limited jurisdiction. Such courts are competent to try commercial
cases. In order to determine the jurisdictional scope of commercial courts, the Law provides a
list of commercial matters. According to Article 3 of the Law establishing commercial courts,
commercial matters refer to commercial, financial, fiscal and other matters closely related to
them regarding:














disputes arising from commercial contracts or commercial activities between persons or
business entities;
disputes arising out of the use of negotiable instruments such as cheques, bills of exchange
and promissory notes;
disputes relating to transactions between persons and financial institutions;
disputes related to liquidation, dissolution and recovery of limping business firms;
cases related to insurance litigation but not including compensation claims arising out of
road accidents by litigants who have no contract with the insurance firms;
claim related to fiscal disputes;
claims related to transport litigation;
any dispute that may arise between persons who own or manage registered entities and
commercial institutions and these include:
members of the Board of directors;
directors;
shareholders;
auditors;
liquidators;
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
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managers of the property of a bankrupt business firm.
cases arising from bankruptcy;
cases related to intellectual property including trademarks;
cases related to registration and deregistration of businesses;
cases related to appointment or removal of auditors responsible for auditing the books and
accounts of a firm;
 cases related to competition and consumer protection.
Problems may arise from the determination of the jurisdiction of commercial courts based on a
commercial list. Indeed, a list of commercial issues is not comprehensive and question of
jurisdiction may arise in some cases so as to decide jurisdiction. Thus, it is necessary to
formulate clear and efficient rules in order to avoid such problems.
As to the in-value jurisdiction of commercial courts, the Law provides that Commercial Courts
deal with all commercial disputes with a value below 20 million Rwandan francs and nonmonetary commercial matters. The Commercial High Court decides at first instance all cases
with a value above 20 million Rwandan francs and hears appeals from interlocutory interim
orders and judgments of the Commercial Courts at the first level. The Supreme Court hears
appeals against decisions of the Commercial High Court.
The territorial jurisdiction of the Commercial High Court and Commercial Courts is provided in
an annex to the Law establishing Commercial Courts.

Question 5
Arbitration can be defined as “a procedure applied by parties to the disputes requesting an
arbitrator or a jury of arbitrators to settle a legal, contractual or another related issue”,
Explain in detail the arbitration process
Solution 5
Introduction
In Rwanda, new law on commercial arbitration and conciliation was established in 2008 as Law
n° 005/2008 of 14/02/2008 on arbitration and conciliation in commercial matters.
Article 3 (2) of Rwandan law on arbitration defines arbitration as “a procedure applied by
parties to the disputes requesting an arbitrator or a jury of arbitrators to settle a legal,
contractual or another related issue‟.
Arbitration refers to a process in terms of which the parties to a dispute voluntarily and jointly
ask a third party, the arbitrator, to hear both sides of their dispute and make an award that they
undertake in advance will be final and binding. The fact that the arbitrator settles the dispute by
making a legally binding award distinguishes arbitration from mediation and negotiation. For
this reason, arbitration is more similar to litigation, as both are command processes where a
decision is imposed on the parties, in contrast to negotiation, which is consensual in nature. But,

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in contrast to litigation, the arbitrator`s award arises from the consent of parties to accept the
award, not from the power of the court imposing an order.
Significant features of arbitration

Four significant features of commercial arbitration are singled out for now, although they will
be the subject of a brief comment later. These features are :





The agreement to arbitrate;
The choice of arbitrators;
The decision of the arbitral tribunal;
The enforcement of the award.

The agreement to arbitrate
An agreement by parties to submit to arbitration any dispute or difference between them is the
starting point of the process in both national and international arbitration. If there is to be a
valid arbitration, there must first be a valid agreement to arbitrate. Arbitration is a contractual
process in the fact that it is based on an agreement between the parties, by opposition to some
cases where arbitration is imposed in statute, such as provided for in Switzerland by article 89
of the Statute on health care insurance for disputes between doctors and health insurers, or as
provided in France by Article 761-5 of the labour law code for certain disputes in the field of
journalism.
The Rwandan law on arbitration defines the arbitration agreement. The long Article 9 of the
above-mentioned law provides:
“Arbitration agreement is an agreement by both parties to submit to arbitration all or
certain disputes which arisen or which may arise between them in respect of a defined
legal relationship, whether contractual or not. An arbitration agreement may be in
the
form of an arbitration clause in a contract or in the form of a separate
agreement. The arbitration agreement shall be in writing. An arbitration agreement is
in writing if its content is recorded in any form, whether or not the arbitration
agreement or contract has been concluded orally, in a written form basing on the
conduct of the parties themselves, or based on other means. The requirement that an
arbitration agreement be in writing is met by an electronic communication if the
information contained therein is accessible so
as to be used for subsequent
reference; Electronic communication refers to any communication that parties make
by means of data message; Data message refers to any
information written, sent,
received or stored by electronic, magnetic, optical and other
means,
including,
but not limited to, electronic data interchange (EDI), electronic mail,
telegraph,
telex or telefax. Furthermore, an arbitration agreement is in writing if it is
contained in an exchange of statements of claim and defence in which the existence of
an
agreement is alleged by one party and not denied by the other. The reference
in a contract to any document containing an arbitration clause constitutes an
arbitration agreement in
writing, provided that the reference is such as to make
that clause part of the contract”.

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The choice of arbitrators
One of the features of that distinguishes arbitration from litigation is the fact that the parties to
an arbitration are free to choose their own tribunal. Sometimes, it is true; this freedom is unreal,
because the choice may be delegated to a third party such as an arbitral institution. However,
where the freedom exists, each party should make sensible use of it. A skilled and experienced
arbitrator is one of the key elements of a fair and effective arbitration.
The decision of the arbitral tribunal
It is not uncommon for a settlement to be reached between the parties in the course of arbitral
proceedings. However, if the parties cannot resolve their dispute, the task of arbitral tribunal is
to resolve the dispute for them by making a decision, in the form of a written award.
An arbitral tribunal does not have the powers or prerogatives of a court of law, but it has a
similar function to that of the court in this respect, namely that it is entrusted by the parties with
the right and the obligation to reach a decision which will be binding upon them.
The power to make binding decisions is of fundamental importance. It distinguishes arbitration
as a method of resolving disputes from other procedures, such as mediation and conciliation
which aim to arrive at a negotiated settlement. The procedure that must be followed in order to
arrive at binding decision by way of arbitration may be described as judicial. An arbitral
tribunal is bound to act fairly and impartially as between the parties, giving each party a
reasonable opportunity of putting his case and dealing with that of his opponent.
The enforcement of the award
Once an arbitral tribunal has made its award, it has fulfilled its function and its existence comes
to an end. The tribunal`s award, however, gives rise to important and lasting legal
consequences. Although it is the result of a private arrangement and is made by a private
arbitral tribunal, the award constitutes a binding decision on the dispute between the parties. If
it is not carried out voluntarily, the award may be enforced by legal proceedings both locally
(that is to say, in the place in which it was made) and internationally.
The registration or deposit of award is a sine qua non requirement for an award to be
recognized an enforced in Rwanda. However, no fee is paid for that registration or deposit for
recognition of arbitral awards sought in Rwanda.
According to article 395 of the law establishing Commercial, civil, social and administrative
procedure code, the party seeking recognition shall deposit the duly authenticated original
award or duly certified copy thereof; and the original agreement or duly certified copy thereof
award at the president of the higher instance court`s office and request the executory stamp on
the deposited award. Article 396 of the same law, states that the President has 8 days to make a
decision concerning that recognition.
In 2008 Rwanda ratified the New York convention on Recognition and Enforcement of foreign
arbitral awards and became the 143rd State party to the convention.
The New York convention provides for a simpler and effective method of enforcement of
obtaining recognition and enforcement of foreign awards. It is mainly due to the provisions of
the New York convention that arbitration has become a very attractive alternative to traditional
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litigation. It is one of the widest accepted international conventions. It has significantly
simplified the enforcement of foreign awards and harmonized the national rules for the
enforcement of foreign awards.
Matters excluded from arbitration
The subject matter of a dispute must be arbitrable in order for legitimate arbitration to take
place. According to article 47 para 5 of Rwandan law on arbitration provides that a party can
appeal against an award if:
“The award deals with a dispute not contemplated by or not falling within the terms of the
submission to arbitration, or contains decisions on matter beyond the scope of the
submission to arbitration, provided that, if the decisions on matters submitted to
arbitration can be separated from those not submitted, only that part of the award which
contains decisions on matters not submitted to arbitration may be set aside”.
Arbitration is not permissible in following matters:




Matrimonial causes;
Matters relating to status;
Criminal cases

Question 6.
Discuss the distinction between civil law and criminal law in the Rwandan law

Solution 6
Criminal law is a set of rules that prohibit anti- social conduct as well as certain deviant
behaviour. This law aims to shape people’s conduct along lines which are beneficial to society,
by preventing them from doing what is bad for society. In Rwandan law, these prohibitions are
listed in the penal code and a number of subsidiary legislation. Also forming part of the
criminal justice system are courts which adjudicate questions of criminal liability as well as the
police force and other enforcement agencies which exists not only to maintain law and order
but also to detect and prosecute violations against the criminal law. It is society through
Government employees called public prosecutors that bring court action against violators. If a
person is found guilty of a crime such as theft, the person will be punished by imprisonment
and or a fine. When a fine is paid, the money goes to the government, not to the victim of the
crime.
Civil law consists of rules, principles and standards which create rights and duties and specifies
remedies to back up those rights. The duties are owed by a physical or a moral person to
another. Actions for the breach of civil duty must be brought by injured party or her/his
representative. In a civil matter, the court does not seek to punish the wrongdoer but rather to
compensate the injured party for the harm they have suffered. For instance, if someone
carelessly runs a car into yours that person has committed a civil wrong (tort) of negligence. If
you have suffered damages you will be able to recover to the extent of the damages suffered.

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However, although civil law does not aim to punish, there is an exception. If the behaviour of
someone who commits a tort is outrageous, that person can be made to punitive damages (also
called exemplary damages). Unlike a fine paid in a criminal case, punitive damages go to the
injured party.
In some cases, the same behaviour can violate both the civil law and the criminal law. For
instance, a person whose careless driving causes the death of another may face both a criminal
prosecution by the state and a civil suit for damages by survivors of the deceased. If both suits
are successful, the person would pay back society for the harm done through a fine and/or a
sentence, and compensate the survivors through the payment of the money damages.

Question 7
Explain the nature of negotiable instruments with particular reference to Bills of Exchange,
Cheques and Promissory notes.
Solution 7
Negotiable Instruments are property which is acquired by anyone who acquires it on a bona fide
basis, and for “value”, notwithstanding any defect of title in the person from whom they
obtained it. Negotiable instruments are transferable by delivery or by endorsement and delivery,
without notice to the party liable, in such a way that a) the holder of it for the time being may
sue upon it in his own name, and b) the property in it passes to a bona fide transferee for value
free from any defect in the title of the person from whom he obtained it.
The negotiable instrument refers to a promissory note, bill of exchange or cheque payable either
to order or bearer. These three instruments are usually characterised as negotiable instruments.
A bill of exchange is an instrument in writing containing an unconditional order, signed by the
maker, directing a certain person to pay a certain sum of money only to, or to the order of,
another specified person or to the bearer of the instrument.
A promissory note is an unconditional promise in writing made by one person to another,
signed by the marker, engaging to pay on demand or at a fixed or determinable time in the
future, a sum of money to, or to the order of, a specified person or bearer. A promissory note
therefore has two parties to it, the promissory and the promisee; this is in contrast to for
example a bill of exchange which has three. It is a promise to pay, not an order for someone
else to pay. A promissory note is complete when it is delivered to the promisee.
A cheque is a bill of exchange drawn on a specified banker and expressed to be payable
otherwise than on demand. In ordinary usage cheques have generally taken the place of bills of
exchange; however their use is still important as cheques are generally not intended to be
negotiated, though there are instances where cheques may be.

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Question 8
Discuss, with respect to real property, the concept of ownership in Rwanda law

Solution 8
Ownership is defined by the article 14 of the civil code book II as the right of disposing of
things in the absolute and exclusive manner, subject to any restriction of the law and the real
rights belonging to other persons. The same article also provides that “Restrictions of the right
of ownership resulting from the relationship between neighbours are established in the title
concerning charges on Land”.
The concept of the right of ownership is considered as a total and an exclusive right strictly
reserved to the usage and enjoyment of individuals. The Rwandan constitution recognizes
ownership rights where it says “Every person has a right, to private property, whether personal
or owned in association with others” (Art. 29 of Rwandan constitution).
The inviolability of the right of ownership is provided for by the Rwandan Constitution.
“Private property, whether individually or collectively owned, is inviolable. The right to
property may not be interfered with except in the public interest, in circumstances and
procedures determined by law and subject to fair and prior compensation”.
Ownership rights are the most complete real rights one can talk about because they are the only
ones that accord to their owner all the three prerogatives; i.e. Usus, Fructus and Abusus. Art.1
of the civil code Book II makes an introduction of the concept of ownership and the related subrights such as the superficiary, emphyteusis, and servitudes. The full owner of a property must
have all the three mentioned sub-rights which together form the ownership right (Usus, Abusus
and Fructus).

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Question 9
Describe the concept of risks in Rwandan Insurance Law.
Solution 9
The concept of risks are very important in any insurance contract. There are three main
categories of risks: technical risks, asset risks and other risks.
Technical risks arise from the very nature of the insurance business hinging on the
determination of liabilities. Insurance liabilities are estimated using actuarial or statistical
techniques, based on probability using past experience and making assumptions about the
future. If these calculations are incorrect, liabilities would be understated or premiums would be
undercharged, both would distort the insurer’s true financial position and lead to liquidity or
even solvency problems. Underpricing, unforeseen or inadequately understood events and
insufficient reinsurance are all examples of technical risks. As an example of asset risks,
insurers face market risk, credit risk and to a lesser degree, liquidity risk. Other risks include
legal and operational risks.

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Question 10
Briefly outline the following concepts in Rwandan Law governing contracts
A)
B)

Minors
Consideration

Solution 10
A minor (also called an infant) is a person who has not attained the age of legal majority. In
Rwanda, unless specifically provided otherwise, the age of majority for a valid contract is
twenty-one years. Exceptions are that in commercial matters, the majority is sixteen years while
for employment contracts, the majority is eighteen.
A minor‘s contract, whether executed or executory, is voidable at his/her guardian’s option.
Thus the minor is placed in a favored position by having the option to disaffirm the contract or
to make it enforceable.
The exercise of the power of avoidance, called disaffirmance, releases the minor from any
liability under the contract.
On the other hand, after the minor comes of age, they may choose to adopt or ratify the
contract, in which case they surrender their power of avoidance and become bound by their
ratification.
A minor may disaffirm a contract within a reasonable time after coming of age as long as they
have not already ratified the contract. Determining a reasonable time depends on circumstances
such as the nature of the transaction and whether either party has caused delay. Some
jurisdictions prescribe a time period within which the minor may disaffirm the contract.
A minor has the option of ratifying a contract after reaching the age of majority. Ratification
makes the contract binding from the beginning (ab initio). Once effected, ratification is final
and cannot be withdrawn; furthermore it must be in total, validating the entire contract.
Contractual incapacity does not excuse a minor from an obligation to pay for necessaries such
as food, shelter, medicine and clothing that are suitably and reasonably supplied for their
personal needs.
Consideration
The concept of consideration is new in Rwandan Law. It is slightly different from the concept
of cause known in the Rwandan Civil code.
The doctrine of consideration ensures that promises are enforced only where the parties have
exchanged something of value in the eye of the law. Gratuitous promises those made without
consideration are not legally enforceable except under some circumstances.

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A performance or a promise by the promisee is a consideration if it is established as such by the
promisor and is given by the promisee in exchange for that promise. The consideration
exchanged for the promise may be an act, forbearance to act, or a promise to do either of these.
The law does not regard the performance of, or the promise to perform a preexisting legal duty,
public or private, as a consideration.
The consideration for a promise must be either a legal detriment to the promise or a legal
benefit to the promisor. The promisee must give up something of legal value, or the promisor
must receive something of legal value in return for the promise.
Legal benefit means the obtaining by the promisor of that which he had no prior legal right to
obtain.
Consideration must not be in the past: If one party voluntarily performs an act, and the other
party then makes a promise, the consideration for the promise is said to be in the past. Past
consideration is regarded as no consideration at all.

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