ENGINEERING LAW

BY

DR KAREEM ADEDOKUN
Department of Business and Private Law
College of Law
Kwara State University, Malete

COURSE CONTENTS

1
PART A: PRELIMINARY KNOWLEDGE OF LAW

 Meaning of Law
 Characteristics & Classifications of Law
 Functions & Sources of Law
PART B: NIGERIAN LEGAL ENVIROMENT

 Court System in Nigeria

 Engineers in Court
 Superior and Inferior Court
 Court Proceedings in Public
 Jurisdiction & Powers of Court
 Hierarchy of Courts in Nigeria
PART C: ETHICAL CONDUCT IN ENGINEERING

 Law and Morality

 Nature of Ethics
 Ethics and Conduct in Engineering
 Establishment of COREN
 Establishment of Disciplinary Tribunal & Investigating Panel
 Rights of an Engineer Appearing before Disciplinary Panel
PART D: ENGINEERING BUSINESS STRUCTURE

 Engineering Business Structures & Its Importance

 Relationship between Businesses and Employees
 Sole Proprietorship
 Partnership
 Limited Liability Company

PART E: ENGINEERS & CONTRACTUAL RELATIONSHIPS

 Meaning & Types of Contract

2
  Essential Elements of a valid Contract
 Terms of a Contract
 Exclusion Clauses and Limiting Terms
 Vitiating Elements in Contract
 Privity of Contact
 Remedies for Breach of Contract
 Contract of Employment

PART F: ENGINEERS & TORTIOUS LIABILITIES

 The Nature of Torts

 Trespass
 Negligence
 Defamation
 Nuisance
 Passing off
 Remedies for Tort

PART G: BASIC KNOWLEDGE IN ACQUISITION OF PROPERTY

 Types of Properties
 Contract of Sale of Land
 Intellectual Property in Engineering

CHAPTER 1

3
PRELIMINARY KNOWLEDGE OF LAW

Engineering is a profession with multifarious dimension. It has many

branches though regulated by a single professional body known as Council
for Regulation of Engineering in Nigeria (COREN). As a matter of fact, an
engineer is expected to be acquainted with the legal environment where he
operates in order to gain an understanding of how to prevent or limit his
legal liability. This will expose him to the culture of complying with legal
norms and principles affecting his profession. In view of this therefore, this
work provides guidelines and techniques that show how to manage
preventively legal challenges confronting him prior to taking action.

MEANING OF LAW
All human behavior is shaped in one way or the other by various laws. Law
consists of rules and regulations designed to regulate human conduct in the
society. Engineering Law is the aggregates of legal principles and legislation
that regulate variety of situations that directly relate to engineering
profession. For instance,
i. A civil engineer working on a construction site is an occupier of the
premises and as such he owes a duty of care to lawful visitors to
ensure that the premises are reasonably safe.
ii. An engineer must take the necessary steps to provide adequate plant
and equipment for his workers and he will be liable to any workman
whqp6eirdeghrxf78yptguflo is injured through the absence of any
equipment which is obviously necessary for the safety of the
workman.

4
iii. Assuming one heavy harmer falls on a casual food vendor who
brought food for workers at a construction site, what will be the
liability of the engineer (contractor) in such a situation?
iv. What is the legal implication where a mechanical engineer who is
employed to work at a power station was working when the
scaffolding on which he was standing collapsed, causing him to fall to
the ground?
v. An engineering company that intends to obtain loan facility from a
bank and mortgaged its landed property as security for the loan. What
happens should he default in repayment?
The above illustrations represent different situations that knowledge
of law sheds light on for engineers in the practice of engineering
profession.

CHARACTERISTICS OF LAW
Some of the attributes of law are as stated below:
a) Law is man-made- The law regulating engineering profession is not a
divine law revealed through inspirations. Rather, it is either the one made
by law makers at various legislative chambers or the accepted legal
principles made by judges of common law courts received into the corpus
of Nigerian legal system. For example Engineers Act was enacted by the
National Assembly which comprises the representatives of the people.
b) Law is dynamic- Human conduct changes from time to time and
generation to generation and so also the law. It changes along with
human behavior. About twenty years ago, there was no law known as
Terrorism Act or EFCC Act in Nigeria until recently when some
individuals started exhibiting acts of terrorism and money laundering.

5
 Again, the development in Information and Communication Technology
has brought about phenomena like e-commerce, e-banking and e-
generated documents and these engender new legal regimes regulating
commercial activities in cyber-jurisdiction as a result of legal dynamism.
It is the dynamic nature of law that usually warrants amendment and
reformation to meet the needs of the people as changes occur and society
develops.
c) Law is normative- Law regulates human conduct in various forms such
as in contracts, crimes, civil - wrongs among others. In the absence of
law, people will breach contractual obligations with impunity, commit
crimes with fun-fare, professionals will operate with negligence having
little or no regard for duty of care, government will trample upon
people’s rights intentionally without any award of compensation for the
victims. In essence, law limits and restricts human activities to bring
them under control. It does to human being what bridle does to a horse in
order to prevent it from being unruly.

d) Law is coercive- Law is devoid of its potency when there is no

enforcement or if the enforcement is weak. It is enforced with certain
element of force to be effective. It is a known fact that people don’t obey
law ordinarily unless there is an act or process of compelling obedience
or compliance with it. For instance, the fear of arrest, detention,
prosecution and imprisonment deters people from committing crime; the
punitive nature of award of heavy monetary compensation for breach of
contract or legal duty of care is frightful and consequently makes people
to be careful in discharging such duty and maintain expected standard of
care.
6
 e) Law has territorial limit- Law applies to all persons within a given
territory regardless of their citizenship or nationality. Nigerian law for
example cannot operate in India. Even within Nigeria, Laws of Kwara
State cannot operate in Oyo state. Each territory has laws regulating the
affairs of the people within that geographical territory.

CLASSIFICATION OF LAW

In the ordinary course of his business, an engineer may come across different
categories of law. It is important to stake out those divisions of law to enable one
know the relationship in structure, aims and differences in them. Law may be
classified in various ways such as:

a) Written and Unwritten Law

b) Civil and Criminal Law
c) Public and Private Law
d) Substantive and Procedural Law
e) Municipal and International Law
f) Common Law and Equity
g) Civil and Common Law

Written and Unwritten Law

Written law is the law enacted and codifieiedsthe law-making body. It is enacted in
form of statute, legislation or ordinance. Examples of such law is the Constitution
of the Federal Republic of Nigeria 1999,Acts of the National Assembly, Laws of
the House of Assembly of a state, Decrees and edicts made during military era and
treaties. Conversely, unwritten law is a rule, custom or practice that has not been
enacted in the form of a statute. It includes customary law, principles of common
7
law and judicial precedents. It should be borne in mind that engineers in the course
of practicing their profession will come across some laws which are written and
some unwritten.

8
9
Civil and Criminal Law

Civil Law is the law of civil or private rights as opposed to criminal law. Its main
object is the redress of wrongs by compelling compensation or restitution. The
parties in a civil suit are usually referred to as Claimant and Defendant. The burden
of proof in most civil trials is preponderance of evidence (balance of
probability).That is, evidence that has the most convincing force though not
sufficient to free the mind wholly from all reasonable doubt but sufficient to
incline a fair and impartial mind to one side of the issue rather than the other.
A crime is an act that the law makes punishable. Under the Constitution, no person
can be tried criminally unless the offence for which he is alleged and the
punishment to it are defined in a written law. Criminal Law therefore is the body of
law that defines offences and prescribes punishments for convicted offenders. The
objects of criminal law is to punish the offender in order to give him and others a
strong inducement not to commit the same or similar crimes and perhaps to satisfy
the public sense that wrongdoing ought to meet with retribution. Crimes are
committed against the state and as such parties in criminal trials are State and
Defendants or Accused person. The burden of proof in criminal proceedings is
prove beyond reasonable doubt, that is beyond the doubt that prevents one from
being firmly convinced of a defendant’s guilt. Each offence has provable
ingredients. A prosecutor has proved an offence beyond reasonable doubt when he
has proved all the ingredients of an offence otherwise an accused person will be
discharged and acquitted. An accused person is discharged when he is released
from confinement or free from criminal charge. He is acquitted when he is legally
certified by a judge’s verdict after trial that he is not guilty of the offence charged.
That is he is absolutely discharged by judicial pronouncement from the alleged
accusation.

10
Public and Private Law

Public Law is the body of law dealing with the relations between private
individuals and the government and with the structure and operation of the
government itself. Examples of public law are Constitutional Law, Criminal Law,
administrative law, Law of Evidence, Revenue Law etc. Private Law on the other
hand deals with legal relationship of private persons and their property, examples
of which are Law of Contract, Property Law, Labour Law, Intellectual Property
Law, Family Law etc

Substantive and Procedural Law

Substantive Law is the law that creates, defines and regulates the rights, duties and
powers of parties. It may be civil or criminal; while the law of procedure defines
the modes and procedure for instituting substantive law in a court of law. For
instance, substantive law of contract defines the right and obligations of parties,
when such is breached, it is the law of civil procedure that defines the modes and
provides for the legal machinery to sue and enforce the breach in a court of law.
Procedural Law is also called Adjectival Law. Examples of Procedural Law
include, Civil Procedure, Criminal Procedure, Law of Evidence, Sheriff and Civil
Process Act etc.

Municipal and International Law

Municipal Law refers to laws applicable within a nation. It is the internal Law of a
sovereign nation made by the country for itself. In Nigeria for example Municipal
Law consists of substantive and procedural civil and criminal laws. International
Law regulates legal relationships among sovereign nations. It is the set of rules and

11
agreements which regulate the conduct of nations and international organizations.
International law may be private or public international law. The former regulates
cross-border activities of private individuals while the latter regulates relationships
between governments of two or more sovereign nations.

Common Law and Equity

Common Law is the body of legal principles developed by judges in England after
the Norman Conquest around 1066.It is one aspect of the laws received into the
corpus of the Nigeria laws from England as at 1 st day of January,1900. Common
Law was common because it applied in the four constituent parts or home nations
that make up the United Kingdom(England, Scotland, Ireland and Wales).The
courts employed judicial precedents to create the common law. The harsh nature
and rigidity of common law necessitated the emergence of equity. It means fairness
and justice. In other words equity was a reaction to the inadequacies of the
common law through equitable doctrines and maxims. The maxims were the
summation of the practices of equity over time. The twelve orthodox maxims of
equity are:
1) Equity will not suffer a wrong to be without a remedy
2) Equity follows the law
3) Where the Equities are equal, the first in time prevails
4) Where the Equities are equal the law prevails
5) He who seeks Equity must do equity
6) He who comes to Equity must come with clean hands
7) Delay defeats Equity
8) Equality is Equity
9) Equity looks to the Intent rather than the form

12
 10) Equity imputes an intention to fulfill an obligation
11) Equity acts in personam
12) Equity looks on that as done which ought to be done

FUNCTIONS OF LAW
The functions of law in society include:
1) It is an instrument that regulates the conduct and activities of the people in
the society
2) It is a means for the administration of justice through the establishment of a
court system.
3) It is an instrument of legitimacy
4) It establishes and allocates governmental structures and institutions
5) It provides for and safeguards the fundamental human rights of the citizens.

SOURCES OF LAW RELATING TO ENGINEERING

The Law relating to Engineering emanated from various sources such as the
Constitution, Nigerian Legislation, Received English Law, Case Law, Treaty

(a) Constitution
Constitution is the supreme law and its provisions have binding force on all
authorities and persons throughout Nigeria. It is referred to as the grundnorm from
where all other laws derived their validity. That is why if any other law is
inconsistent with the provisions of the Constitution, the Constitution shall prevail
and that other law shall to the extent of its inconsistency be void. In other words,
all other laws regulating Engineering profession must conform to the legal

13
frameworks or concepts set out by the Constitution such as rule of law, fair
hearing, separation of power, access to court etc.

(b) Nigerian Legislation

This refers to the laws made by the law-making organs in Nigeria. A Legislation is
the law enacted by the legislature usually in a written form or code. At the National
Level, the National Assembly is empowered to make laws for the peace, order and
good governance for the Federal Republic of Nigeria. National Assembly consists
of the senate and the House of Representatives. At the state level, the House of
Assembly of each state makes law for the peace, order and good governance for
the state. Pursuant to this power, the National Assembly has enacted several laws
that impact Engineering profession such as Engineers Registration Act (which
establishes Council for the Regulation of Engineering in Nigeria (COREN) among
others, to regulate and control the practice of the engineering profession in all its
aspects and ramifications. The National Assembly and states Houses of Assembly
can enact statutes within the ambit of the legislative list assigned to them by the
Constitution.

(C) Case-Law/Judicial Precedent

Case-Law is the law formed from earlier decided cases. It is based on judicial
precedents or law laid down in earlier cases and the principle of stare decisis i.e
the practice of applying earlier decisions to a case at hand provided that the case at
hand is similar to the earlier case(s). Judicial precedent or case law consists of laws
expoused in judicial decisions. Example of case laws are Temco Engineering Co.
Ltd v Savannah Bank where the court of appeal analyzed what constitutes
promissory estoppel by conduct; Koiki v N.E.P.A where a mechanical engineer
employed by N.E.P.A was working at Ijora power station when the scaffolding on
14
which he was standing collapsed, causing him to fall to the ground, the defendant
was held liable for the injuries sustained by the engineer. In Ross v Associated
Portland Cement Manufacturers Ltd, it was held that an employer must take the
necessary steps to provide adequate plant and equipment for his workers and he
will be liable to any workman who is injured through the absence of any
equipment which is obviously necessary for the safety of the workman. This also is
a case law.

(c) Received English Law

This is the law received from England as at 1 st day of January 1900. It comprises of
the common law, doctrine of equity and Statutes of General Application. They
constitute essential aspects of Nigerian Law till date particularly in areas of
contract and torts (civil wrongs). While Common Law and Equity have been
explained earlier, Statute of General Application was not. The authority of A.G v.
John Holt Co defined the Statute of General Application as various enactments in
England as at 1st January, 1900 if at that date the statutes were either applied by all
civil and criminal courts in England or applied to all classes of persons in England.
In other words, Statutes of General Application were statutes passed by English
Parliament meant to apply or extend by reason of subject matter to the various
colonies and protectorates of the British Empire. In Lawal v Younan the court
classified Statute of General Application into two viz :
a) Statutes Concerning Property and Conveyancing such as Conveyancing Act
of 1881, Wills Act of 1897
b) Statutes relating to Commercial Transactions such as Bills of Exchange Act
1882, Partnership Act 1890, Sale of Goods Act, 1893.
These statutes, one way or the other affect Engineers in the course of practicing
his profession. For instance Bill of Exchange Act 1882 regulates the use of Bills

15
 of Exchange such as Cheques, Bank drafts and bill of lading in Commercial
transactions which are otherwise known as negotiable instruments. At least an
engineer should be familiar with the legal implication of a crossed-cheque
different from an open cheque.

PRACTICE QUESTIONS

Q1.
State the sources of law where principles that regulate the following
scenarios belong:
a) On 20th September, 2017, Kwara State University, Malete engaged the
service of Klean Apple Engineering Co.(a civil engineering company) to
construct and deliver KWASU dam within six months. As at 20th
October, 2018, Klean Apple Engineering Co handed over the dam to
KWASU but the institution threatens to sue the company for damages for
not delivering within six months.

b) Council for Regulation of Engineering in Nigeria (COREN) is a body

established by an enactment to regulate and control the practice of the
engineering profession in all its aspects and ramifications. The same
legislation defines who becomes an engineer in Nigeria.
(d) Dr Adedokun is a legal practitioner who represents Classic Engineering
firm before the High Court of Kwara State. In his contention before the
court on 3rd October, 2018, he implored the Honourable Court to be
guided by the ratio decidendi in the case of KWASU v Tremco
Engineering Ltd(2017)KLR 39 as it is on all fours with his client’s case.

16
(e) Explain what you understand by the term “grundnorm” and its relevance
to the practice of the engineering profession in Nigeria

Q2
(a) Attempt various classifications of law and state their relevance to
Engineering practice in Nigeria.
(b) Law has many features and relevance to human society. Explain them

REFERENCES
1) Ese Malemi- The Nigerian Legal System( Text and Cases) 4th
Edition, Priceton Publishing Company, 2012
2) Bryan A. Garner- Blacks Law Dictionary,Ninth Edition,West
Publishing Co., 2009
3) Adamu Kyuka Usman- The Law and Practice of Equity and Trust,
Faith Printers International, 2012
4) Kharisu Sufiyan Chukkol- The Law of Crimes in Nigeria, A.B.U
Press Limited, 2010

CHAPTER 2: NIGERIAN LEGAL ENVIROMENT

17
 Court System in Nigeria
Nigeria is a federation consisting of states and a Federal Capital Territory. The
powers of the Federal Republic of Nigeria are separated and entrusted in the hands
of the various organs of government. By Section 4 of the Constitution, the
Legislature is vested with legislative power which is the power to make laws. The
Executive is imbued with Executive powers pursuant to Section 5 of the
Constitution. This is the power to execute the policies of the government in
accordance with the laws made by the legislature. Section 6 of the Constitution
vested the Judiciary with the judicial powers. This is the power of administration
of justice. The judiciary comprises the court system and the judicial personnel that
administer justice in the court. A court is a governmental body consisting of one or
more judges who sit to adjudicate disputes and administer justice 1. The judges are
referred to collectively as the Bench while the whole body of lawyers qualified to
practice law are called the bar2.In a simple parlance, the court is a forum for
dispute resolution and interpretation of laws. In Zakari v. Alhassan3 the Court of
Appeal remarked that the court plays an important role in the interpretation of the
Constitution, protects the rights of Citizens from encroachment by any organ of the
government and generally has the inherent jurisdiction to determine cases between
persons and persons or government.4
Engineers in Court

Engineers’ presence may be needed in court for various reasons. First, as parties to
a suit particularly in a criminal matter, the presence of an engineer who is standing
trial as the Accused or Defendant is mandatorily required. Second, an engineer
may be required to be in court as a witness in a matter. He may come willingly as a
1
. Bryan A. Garner- Blacks Law Dictionary, Ninth Edition, West Publishing Co., 2009, P.405
2
Ibid, Pp 168 and 179
3
(2002)2 N.W.L.R 119 at 141
4
Asein J.O-Introduction to Nigerian Legal System 2nd Edition, Lagos, P.169

18
witness to any of the parties and he may be compelled to come to court as witness
of the court if subpoenaed. A subpoena is an order of court commanding a person
to appear before it and failure to comply attracts sanctions from the court. An
engineer may be subpoenaed for the purpose of giving testimony in court (
subpoena ad testificandum) or for the purpose of producing documents only
( subpoena duces tecum). Third, an engineer may be in court to stand surety for the
purpose of securing the bail of an accused person in a criminal trial. His role as
surety is to assure the court of the presence of an accused person whenever he is
needed in court. The accused will be released to him on bail bond and whenever
the accused person jumps bail, he will be liable in a penal sum. In effect, the
release on bail bond is to transfer custody of the defendant or accused from the
court to the custody of the surety on the bail bond. The surety undertakes to re-
deliver the defendant to the legal custody at the time and place appointed in the
bond.

Superior and Inferior Courts

In Nigeria, Courts are generally categorized into Superior courts and Inferior
Courts. Superior Courts consist of the Supreme Court, the Court of Appeal, the
Federal High Court, the High Court of the FCT, a High Court of a state, National
Industrial Court, the Sharia Court of Appeal of the FCT, the Sharia Court of
Appeal of a state, the Customary Court of Appeal of the FCT, the Customary Court
of Appeal of a State5. The judicial powers vested on these courts extend to all
inherent powers and sanctions of a court of law. It is exercisable on all matters
between persons or between government or authority and to any person in Nigeria.
It also extends to all actions and proceedings relating to them for the determination
of any question as to the civil rights and obligation of that person. 6 Other courts
5
Section 6 (5), Constitution of the Federal Republic of Nigeria, 1999
6
Ibid, Section 6(6)

19
aside the ones specifically stated above are inferior courts. Examples of inferior
courts are District Court, Magistrate Court, Area Court, Sharia Court, Customary
Court, coroner court, juvenile court, Court martial and Tribunals.

Court Proceedings in Public

As earlier stated, a court is a public forum. As such the Constitution provides that
its proceedings or the proceedings of any tribunal including the announcement of
their decisions shall be held in public.7 In, R v. Chief Registrar of Friendly
Societies(Ex-Parte New Cross Building Society)8, the court stated it as a general
rule that court or tribunal should conduct their proceedings in public and it is only
if, in wholly exceptional circumstances, the presence of the public or public
knowledge of the proceedings is likely to defeat the paramount object of the courts
or tribunal to do justice in accordance with the law that the court or tribunal is
justified to take proceedings in camera. Examples of instances where proceedings
of court may be held in camera are Matrimonial matters when custody or issues
affecting the children of the marriage are in question, juvenile matters, ex-parte
matters. All criminal matters are to be held in public.

Jurisdiction & Powers of Court

Jurisdiction is the authority of a court to entertain a subject matter within its

territorial limit. It is denoted either by subject matter or territorial limit. This is
different from the powers of a court. In Ajomale v. Yaduat(No 1)9Supreme Court
has made it clear that jurisdiction should not be equated with powers. While
jurisdiction is the right in the court or tribunal to hear and determine the dispute
between the parties, the power in the court is the authority to make certain orders
7
Ibid, Section36(3)
8
(1984)2 All E.R. 27
9
(1991)5SCNJ 172 at 176

20
and decisions with respect to the matter before the court. To get the distinction
clearer, Federal High Court and State High Court have different subject matter
jurisdiction but have the same powers of a High Court e.g. power to cite for
contempt, power to issue subpoena or witness summons etc.

Hierarchy of Courts

Supreme Court

The term Hierarchy of courts denotes the ranking of courts in order of seniority.
The apex court in Nigeria is the Supreme Court. It consists of the Chief Justice of
Nigeria as the head and other justices of the court but not than 21 Justices. 10 The
Supreme Court has both original and appellate jurisdiction. To the exclusion of any
other court, the Supreme Court has original jurisdiction in any dispute between the
Federation and states or between one state and another. 11It also has jurisdiction, to
the exclusion of any other court of law in Nigeria, to hear and determine appeals
from the Court of Appeal.

Court of Appeal

The next in the hierarchy is the court of appeal. It is the penultimate court in the
ranking of courts in Nigeria. It consists of the President of the Court of Appeal as
the head and such other justices not less than forty-nine. Out of this number, three
of the justices must be learned in customary law and another three must be learned
in Islamic personal law.12The Court of Appeal, to the exclusion of any other court
of law in Nigeria have original jurisdiction to hear and determine election petition

10
Section 230(1), CFRN, 1999
11
Section,231(1), CFRN,1999
12
Section 237, CFRN, 1999

21
concerning the office of the President or Vice-President or any matter as to
whether the term of the President or vice president has ceased or whether the office
has become vacant.13 It also has jurisdiction to entertain appeal from the Federal
High Court, the High Court of the FCT, a High Court of a state, National Industrial
Court, the Sharia Court of Appeal of the FCT, the Sharia Court of Appeal of a
state, the Customary Court of Appeal of the FCT, the Customary Court of Appeal
of a State.14

The Courts of Co-ordinate Jurisdiction

The following courts are courts of co-ordinate jurisdiction: the Federal High Court,
the High Court of the FCT, a High Court of a state, National Industrial Court, the
Sharia Court of Appeal of the FCT, the Sharia Court of Appeal of a state, the
Customary Court of Appeal of the FCT, the Customary Court of Appeal of a State.
An appeal from one of these courts cannot go to another. They all have the same
power of a high court but different subject-matter jurisdiction.

The Federal High Court

It consists of a Chief Judge and such other number of judges of the Federal High
Court as may be prescribed by an Act of the National Assembly. 15 The Federal
High Court has and exercises jurisdiction on revenue of Federal government,
taxation of companies, custom and excise duties, copyright and trademarks,
aviation and safety of aircraft among others. 16 The Federal High Court entertains
appeal from the Tax Appeal Tribunal.

The High Court of the FCT

13
Ibid, Section 239
14
Ibid, Section 240
15
Ibid, Section 249
16
Section 251(1), CFRN, 1999

22
It consists of a Chief Judge of the court and such other number of judges of the
High Court as may be prescribed by an Act of the National Assembly. 17 It has
original jurisdiction to hear and determine any civil proceedings in which the
existence or extent of a legal right, power, duty, liability, privilege, interest,
obligation or claim is in issue or to hear and determine any criminal proceedings
involving or relating to any penalty, forfeiture, punishment or other liability in
respect of an offence committed by any person. 18 The jurisdiction of this court is
limited to the Federal Capital Territory, Abuja. It entertains appeal from Magistrate
and District Courts.

National Industrial Court

It consists of a President of the court and such other number of judges of the
National Industrial Court as may be prescribed by an Act of the National
Assembly.19 It has original jurisdiction on trade disputes and industrial relation
matters including matters involving strike-action and minimum wages and
salaries.20

Sharia Court of Appeal of the FCT

It consists of a Grand Khadi of the court and such other number of khadis of the
Court as may be prescribed by an Act of the National Assembly. 21The Sharia Court
of Appeal exercises appellate and supervisory jurisdiction in civil proceedings
involving questions of Islamic personal law such as Islamic marriage, succession,
Islamic endowment.22 The jurisdiction of this court is limited to the Federal Capital
Territory, Abuja
17
Section 255, CFRN,1999
18
Section 257, CFRN, 1999
19
Ibid, Section 254A
20
Ibid, Section 255A
21
Ibid, Section 260
22
Section 262, CFRN,1999

23
Customary Court of Appeal of the FCT

It consists of a President of the court and such other number of judges of the Court
as may be prescribed by an Act of the National Assembly. 23 The customary Court
of Appeal exercises appellate and supervisory jurisdiction in civil proceedings
involving questions of customary law.24 The jurisdiction of this court is limited to
the Federal Capital Territory, Abuja

The State High Court

It consists of a Chief Judge of the court and such other number of judges of the
High Court as may be prescribed by the law of the House of Assembly of the
state.25 It has original jurisdiction to hear and determine any civil proceedings in
which the existence or extent of a legal right, power, duty, liability, privilege,
interest, obligation or claim is in issue or to hear and determine any criminal
proceedings involving or relating to any penalty, forfeiture, punishment or other
liability in respect of an offence committed by any person.26 The jurisdiction of this
court is limited to each state. It entertains appeal from District Court, Area Court,
Magistrate Court, Rent Tribunals among others

Sharia Court of Appeal of a State

It consists of a Grand Khadi of the court and such other number of khadis of the
Court as may be prescribed by the law of the House of Assembly of the state. 27The
Sharia Court of Appeal of a state exercises appellate and supervisory jurisdiction in
civil proceedings involving questions of Islamic personal law such as Islamic

23
Ibid, Section265
24
Ibid, Section 267
25
Section 270, CFRN,1999
26
Section 272, CFRN, 1999
27
Ibid, Section 275

24
marriage, succession, Islamic endowment.28 The jurisdiction of this court is limited
to the territory of the state.

Customary Court of Appeal of a State

It consists of a President of the court and such other number of judges of the Court
as may be prescribed by the law of the House of Assembly of the state. 29 The
customary Court of Appeal exercises appellate and supervisory jurisdiction in civil
proceedings involving questions of customary law. 30 The jurisdiction of this court
is limited to the territory of each state.

INFERIOR COURTS

Inferior courts consist of Magistrate Court, Area Court, District Court, Sharia
Court, Customary Court, Coroners Court, Juvenile Court.

CHAPTER 3

ETHICAL CONDUCT IN ENGINEERING

Law & Morality

Law and morality are related concepts. As a matter of fact, the Moralist
School of thought believes that law can be seen at its best when it sticks closely to
morality and that absolute divorce of law from morality would be of fatal
consequence. Both moral and law impose certain standard of conduct without
which human society would hardly survive and in many of these fundamental
28
Section 277, CFRN,1999
29
Ibid, Section280
30
Ibid, Section 282(1)

25
standards, law and morality reinforce and supplement each other as part of fabrics
of social life.
Nature of Ethics
Ethic is the moral principles that control or influence a person’s behavior. Relating
to engineering, it is the standards of professional conduct applicable to members of
the engineering profession. In other words, each engineer is expected to perform
under a standard of professional conduct that requires adherence to the highest
principles of ethical conduct. Any engineer whose behavior falls short of the status
of registered engineer could be said to have committed professional misconduct.
Fundamentally, engineers in the fulfillment of their professional duties shall:

a) Hold paramount the safety, health and welfare of the public

Engineers must not embark on project in a manner capable of endangering
life or property of their client and must not reveal facts, data or information
without the prior consent of the client or employer. Besides, engineers shall
not permit the use of their name or associate in business ventures with any
person or firm that they believed is engaged in fraudulent or dishonest
enterprise.

b) Perform services only in the areas of their competence

Engineers shall undertake assignment only when qualified by education or
experience in specific technical field involved. They shall not affix their
signature to any plan or document not prepared under their direction and
control
c) Issue public statements only in an objective and truthful manner
Engineers shall be objective and truthful in professional reports, statements
or testimony. They shall include all relevant and pertinent information in
26
 such reports, statements, or testimony, which should bear the date indicating
when it was current. They may also express publicly technical opinions that
are founded upon knowledge of the facts and competence in the subject
matter.

d) Act for each employer or client as faithful agents or trustees

Engineers shall disclose all known or potential conflicts of interest that
could influence or appear to influence their judgment or the quality of their
services. They must not accept compensation, financial or otherwise, from
more than one party for services pertaining to the same project, unless the
circumstances are fully disclosed and agree to by all interested parties.
Engineers shall not solicit or accept financial or other valuable
consideration, directly or indirectly, from outside agents in connection with
the work for which they are responsible. Those in public service as
members, advisor, or employees of a governmental or body quasi-
governmental body or department shall not participate in decisions with
respect to services solicited or provided by them or their organizations in
private of public engineering practice.

e) Avoid deceptive acts

Engineers shall not falsify their qualifications or permit misrepresentation of
their or associates’ qualifications. They shall not misrepresent or exaggerates
their responsibility in or for the subject matter of prior assignments.
Engineers shall not offer, give, solicit, or receive, either directly or
indirectly, any contribution to influence the award of a contract by a public
authority, or which may be reasonably construe by the public as having the
effect or intent of influencing the award of contract. They shall not pay a
27
 commission, percentage, or brokerage fee in order to secure work, except to
a bona-fide employee or marketing agencies retained by them.

f) Conduct themselves honorably, responsibly, ethically and lawfully so as to

enhance the honour, reputation and usefulness of the profession
Engineers shall not without the consent of all interested parties, promote or
arrange for new employment or practice in connection with a specific project
for which the engineer has gained particular and specialized knowledge.

Engineers shall be guided in all their relations by the highest standard of

honesty and integrity.
Engineers shall acknowledge their errors and shall not distort or alter the
facts. Engineers shall advice their clients or employers when they believe a
project will not be successful. They must not accept outside employment to
the detriment of their regular work or interest. Before accepting any outside
engineering employment they will notify their employers.
Furthermore, engineers shall not attempt to attract an engineer from another
employer by false or misleading pretences and must not promote their own
interest at the expense of the dignity and integrity of the profession.

ESTABLISHMENT OF COUNCIL FOR THE REGULATION OF

ENGINEERING IN NIGERIA

The Council for the Regulation of Engineering in Nigeria was established under
Section 1 of Engineers (Registration) Act. Looking at the Act, there is a mixed –up
as to the correctness of the full meaning of COREN established by the Act. While

28
the preamble to the Act reads “An Act to establish the Council of Registered
Engineers of Nigeria and to make provisions for other matters connected
therewith” the Caption of Section 1 reads in one breadth” Establishment of the
Council for the Regulation of Engineering in Nigeria and in another breadth it
reads ‘Establishment of Council for the Registration of Engineering in Nigeria’. Be
that as it may, Section 1 established Council for the Regulation of Engineering in
Nigeria (COREN) as a body corporate with the general duty of:
a) Determining who are engineers
b) Determining what standards of knowledge and skilled are to be attained by
person seeking to become registered as engineers and raising those standards
from time to time as circumstances may permit.
c) Establishing and maintaining a register of persons entitled to practice as
registered engineers and publication from time to time of lists of those
persons.
d) Regulating and controlling the practice of the engineering profession in all
its aspects and ramifications.
e) Performing the other functions conferred on the council by this Act

ESTABLISHMENT OF DISCIPLINARY TRIBUNAL AND

INVESTIGATING PANEL
An engineer that breached code of ethics for engineers has committed
unprofessional conduct. Such a person shall first be referred to Registered
Engineers Investigating Panel for investigation on the allegation and thereafter to
Registered Engineers Disciplinary Tribunal if need be.
Registered Engineers Investigating Panel
A panel is established under the Engineers Registration Act as Registered
Engineers Investigating Panel charged with the duty of:
29
 a) Conducting a preliminary investigation into any case where it is alleged that
a person fully or provisionally registered has misbehaved in his capacity as
such or should for any other reason be the subject of proceedings before the
Tribunal.
b) Decide whether the case should be referred to the Tribunal

Registered Engineers Disciplinary Tribunal

The right of access to the courts is indeed an important safeguard for the citizen,
but the machinery of the courts is not suited for settling every dispute arising out of
the work of government. One reason for this is the need for specialized knowledge
if certain disputes are to be resolved fairly and economically. There are areas
which embody complex system of regulation which require innumerable decisions
to be made by officials trained and specialized in those fields. One of such areas is
engineering.
There exists a Tribunal known as Registered Engineers Disciplinary Tribunal. It
was established to consider any case of professional misconduct referred to it by
the Registered Engineers Investigating Panel. The Tribunal is not an
Administrative Tribunal but an Adjudicatory Tribunal.

RIGHTS OF ENGINEERS WHO APPEARED BEFORE THE TRIBUNAL

The proceedings of the Registered Engineers Disciplinary Tribunal, including the
announcement of its decisions shall be held in public (See section 36(4)
Constitution of the Federal Republic of Nigeria (CFRN, 1999). Section 36 (1) of
the Constitution provides that in the determination of his civil rights and
obligations, including any question or determination by or against any government
or authority, a person shall be entitled to a fair hearing within a reasonable time by
a court or other tribunal established by law and constituted in such manner as to
30
secure its independence and impartiality. This presupposes that engineers
appearing before the Tribunal is entitled to right to fair hearing. It is necessary to
state that “right to fair hearing” anchors on two rules of natural justice which are:
Audi Alteram Partem: Hear the other side (No one should be condemned unheard)
(fair hearing) AND Nemo judex in sausa sua: No one can be a judge in his own
cause ( rules against likelihood of bias).
In other words an engineer appearing before the Registered Engineers Disciplinary
Tribunal has the right to:
a) Be given ample opportunity within reasonable time to prepare for his case
before the tribunal.
b) Make representations either in person or by a legal practitioner of his own
choice to the Tribunal.
c) To call witnesses to support his case, examine them and cross-examine the
witnesses of the opposing side.
d) Be free from any likelihood of bias while appearing before the Tribunal.

REFERENCES
1) Stephen Barth—Hospitality Law( Fourth Edition),2012
2) A.W Bradley & K.D Ewing—Constitutional and Administrative( Fourteenth
Edition), 2007
3) Laws of the Federation of Nigeria, 2004
4) http://ethics.iit.edu/ecodes/node/4098

31
 CHAPTER 4
ENGINEERING BUSINESS STRUCTURE

Business Structure
There exist several opportunities of organizational structures to be used in practice
of engineering profession. The structure explains the legal formation of the
business entity that shows the relationship between the business owners and the
outside world. This legal formation is important because the courts and all levels of
government treat businesses and their owners differently based on their
organizational structure. The importance of engineering business structure is as
stated below:
(a) It spelt out the form of tax liability of the business owner. The income tax
he must pay on profit will vary considerably depending on the type of his
structure.

32
 (b) It sets the limit of personal liability for debts. The limits of the owners’
personal liability for the debts of his business will be directly influenced by
the organizational structure he chooses.
(c) It determines the borrowing capacity of the owner. Banks and other sources
of capital will often makes decisions on the worthiness of lending to a
business venture based on the organizational structure.
(d) It shapes relationship with other investors as the type of one’s business
structure influences investment decisions they may make about it.
(e) Equally important is the fact that an individual’s ability to sell or transfer
ownership of the business will be affected by the organizational structure
selected
(f) It helps in knowing the laws governing the requirements of a business entity.

Some of the available business organizational structures are: Sole Proprietorship,

Partnership, and Limited Liability Company. Whichever type one chooses, there is
a uniform law governing their establishment management and administration in
Nigeria called Companies and Allied Matters Act, 2020 and they have their
respective tax implications. The law is divided into six parts namely:
a) PART A—establishes the Corporate Affairs Commission (CAC)
b) PART B- regulates Limited Liability Companies (LLC)
c) PART C –regulates Limited Liability Partnership (LLP)
d) PART D—regulates Limited Partnership (LP)
e) PART E--- regulates Business Names (Sole Proprietorship)
f) PART F—regulates Incorporated Trustees
Sole Proprietorship
A sole proprietorship is the simplest of all organizational structures. In this
structure, a single individual owns all the business and he is responsible for all its

33
debts. In a sole proprietorship, the personal assets of the owner can be used to pay
losses, taxes or damages resulting from lawsuits against the business. There is no
personal protection from any of the risk associated with owning a business. Put
another way, the sole proprietor has unlimited liability for the indebtedness of his
or her business.
Profits of a sole proprietorship are taxed at the same rate as the owners
personal income tax each year the owner files a tax return listing the
proprietorship’s income and expenses. Any profit or loss is reported on the
individual owner’s tax return. If the owner has income not directly related to the
business, loses from the business can be used to reduce the overall amount of
income subject to taxation. Should the owner of a sole proprietorship wish to sell
the business or pass his or her ownership on to others, he or she is free to do so.
Sole proprietorship can be started simply by registering with the Corporate
Affairs Commission (C.A.C) under part ‘E’ of the Companies and Allied Matters
Act to keep track of the business.
Partnership
A Partnership is similar to a sole proprietorship, except that it consist two or more
owners who agree to share the responsibility for the operations, financial
performance, and liability of business. Partnerships are formed through oral or
written contracts. Generally, these agreements will specify the contribution and
responsibilities of each partner:
a. How much time each partner will contribute to the business
b. Who will make decisions on how the business is operated
c. How profits will be divided
d. How loses will be shared
e. A procedure for transfer of ownership, if one or more partner wishes to sell
his or her portion of the business or becomes unable to participate as partner.
34
 Partnerships are occasionally used to begin small operations; but as the risk of
liability increases, the operations are better served by converting to one of the
limited liability structures. As in a sole proprietorship, the partners in a general
partnership have unlimited liability for the indebtedness of the business.
Additionally, the partners are liable jointly and severally for the partnership debt;
that is, they are liable jointly as partner/owners, but they are also liable severally,
meaning that one partner alone owned a 50-50 basis, should one partner unable to
pay his or her own portion of the debt, the other partner will be liable to the entire
amount of the debt. If loan are needed to establish the business, potential lenders
will evaluate the personal assets of each partner. Profits from the business are
distributed to the partners and taxed at the same rate as the owners’ personal
income tax.
Limited Liability Companies
A limited Liability Company is regulated by Corporate Affairs Commission and
Companies and Allied Matters Act.
A company can be described as association of persons united for economic
purposes. It is association of a number of persons coming together to carry on
business for gain. In Nigeria companies may be classified into two broad
categories viz:-
(a) Statutory companies:- These are companies established by an Act of the
National Assembly to carry out specific utilitarian purposes. They are called
public corporations. Examples of such companies are water corporation,
Nigerian Railway Corporation, Nigerian National Petroleum Corporation
etc. These companies are not formed for distributable profit purposes, for
purposes of making social services for the public.
(b) Registered companies:- These are companies incorporated under the
companies and Allied Matters Act, 2020. A registered company as a
35
 collection of persons united in law into a single body having perpetual
succession and distinct personally as an artificial person separate from that
of the persons who are from time to time its members.
DIFFERENCES BETWEEN STATUTORY COMPANIES AND
REGISTERED COMPANIES
(a) The statutory corporations have no shareholders. They do not raise money
by issue of shares and do not pay dividends.
(b) The public corporation raises money by borrowing or through income from
payment for its services.
(c) Since there are no shareholders in statutory companies, the boards of
directors are appointed by the government on its nominees.
(d) The statutory corporation is not governed by the provisions of Companies
and Allied Matters Act (CAMA) but by the statute establishing it.
(e) It is usually established by a statute which always governs its affairs.
APPLICABLE LAW TO COMPANY’S INCORPORATION
In Nigeria today the law that regulates incorporation of registered companies
is Companies and Allied Matters Act (CAMA), 2020. The Act is divided into six
distinct parts namely:-
a) PART A—establishes the Corporate Affairs Commission (CAC)
b) PART B- regulates Limited Liability Companies (LLC)
c) PART C –regulates Limited Liability Partnership (LLP)
d) PART D—regulates Limited Partnership (LP)
e) PART E--- regulates Business Names (Sole Proprietorship)
f) PART F—regulates Incorporated Trustees

CORPORATE AFFAIRS COMMISSION

36
 Section 1 of the CAMA established a body known as Corporate Affairs
Commission (CAC) as a corporate body with perpetual succession and a common
seal capable of suing and being sued in its corporate name. the corporate
Headquarters of the Commission is at Abuja, the Federal Capital Territory. The
commission is mandated to open and maintain its offices in each state of the
federation.
Three sets of professionals are permitted to be accredited members that can
transact business at the commission; they are:
(a) Legal Practitioners
(b) Chartered Accountants
(c) Chartered Secretaries and Administrators
FUNCTIONS OF THE COMMISSION (CAC)
Section 7, CAMA states the functions of the commission to be:
(a) Regulation and supervision of the formation, incorporation, registration,
management and winding up of companies.
(b) Establish and maintain a company’s registry and offices in all the states of
the federation suitably and adequately equipped to discharge its functions.
(c) Arrange or conduct an investigation into the affairs of any company where
the interests of the shareholders and the public so demand.
(d) Perform such other functions as may be specified by any act or enactment.
(e) Undertake such other activities as are necessary or expedient for giving full
effect to the provision of the Act.
TYPES OF REGISTERED COMPANIES
Registered companies are the one registered or incorporated under the
CAMA for the purpose of carrying on business for profit to the owners of the
business. They are of various types viz:-

37
 (a) Company Limited by Shares:- This is a company that has a share capital
and the liability of the members to contribute to the company’s assets in the
event of liquidation or winding-up is limited to the amount of money they
have outstanding on the shares they hold. Section 21(1)(a) CAMA.
(b) Company Limited by Guarantee:- This is a company formed to promote
commerce, out, science, religion, sports, culture, education, charity or other
similar objects. The liability of a member is limited to the amount which he
has undertaken to contribute in the event of the company being wound up.
Authorization of the federal Attorney General must be first be obtained
before the memorandum of association of a guarantee company could be
registered.
A company limited by guarantee shall not have a share capital than 10,000 and
shall become due only upon a call being made by the liquidator upon the winding
up of the company and not during the existence of the company. The income and
property of this type of company are to be applied solely towards the promotion of
its objects and no portion thereof is to be paid or transferred directly or indirectly
to the members of the company. Section 26 CAMA. The name of a company
limited by guarantee shall end with the words (Limited by Guarantee) in brackets.
(c) Unlimited Company:- Section 25 provides for the unlimited company
which shall be registered with a share capital. The liability of the members
of the company is not limited to the amount of share they hold in the
company. The liability of a member is unlimited and he may be liable to the
full amount of the company’s debt. The name of an unlimited company shall
end with the word ‘unlimited’ or ‘ultd’ section 21(c) CAMA.
A company of any of the foregoing types may either be a private company or a
public company.

38
(a) Private company:- A private company is one which is stated in its
memorandum to be private company. S 22(1) CAMA. It has the following
features which distinguish it from a public company:-
i. Its article restricts the transfer of its articles.
ii. Its membership is limited to fifty (50).
iii. It is prohibited from writing the public to subscribe for any shares or
debentures of the company.
iv. The minimum authorized share capital of a private company is
N10,000.00
v. Public company:- By section 24 CAMA, any company other than a
private company is a public company and memorandum shall state
that it is a public company. Such a public company is not affected by
the restrictions or prohibitions suffered by private company. The
minimum authorized share capital for a public company is
N500,000.00

39
40
41
42
43