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The Concepts of Negligence, Misrepresentation under Nigerian Law

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The Concept of Negligence under Nigerian Torts Law

The legal term “negligence” is quite constantly used in a wide variety of claims and courtroom disputes, but it derives its most original meaning as a Torts Law concept which will be the focus of this article. 

This article will be looking at :-

– The definition of negligence as a a Torts law concept.

– The elements of negligence.

– Special doctrines involved in negligence as a Torts law concept.

– The concept of damages as a legal consequence of negligence.

What is Negligence as a Tort?

Negligence is the failure or breach of a duty to exercise appropriate care expected in a set of specific circumstances which is legally punishable with reliefs that include but are not limited to damages.

What are the elements of Negligence?

The elements of negligence as a concept are :-

1). Duty :- Which is a legally required obligation to exercise reasonable care.

2). Breaches of Duty :- Breaches of duty in this context typically involve an act or omission.

3). Damages – which emanate from an act or omission constituting a breach of duty.

4). Causation :- The damage suffered being at reasonable face value a clear effect of a breach of duty constituting a causative factor.

What are the special doctrines involved in proving Negligence as a tort?

–  Res Ipsa Loquitur (a Latin maxim meaning “The facts speak for themselves”)  which states that:-

1). The incident involving damages does not usually occur without negligence.

2). The factors and circumstances leading to the damage suffered by the plaintiff were within the control of the allegedly negligent party.

3). There was no contributory participation in the damage by the plaintiff. 

-Negligence Per Se – This is negligence that exists by virtue of an act or omission being in violation of any relevant law governing a particular subject matter concerning that act or omission.

What exactly are damages as a consequence of negligence?

Damages are rulings of court usually in the form of monetary fines by way of compensation to the plaintiff based on a valuation of the harm done based on the equitable doctrine of restitution.

Damages can be either :-

Special :- For clearly ascertainable losses .

General :- Not easily valued in monetary or liquidated demand terms.

Punitive :- Aimed at specifically punishing the conduct of a defendant in the event of damages caused by very willful and sometimes malicious negligence.

The Concept of Misrepresentation Under Nigerian Contract Law

Among several factors that serve to invalidate a contract, one of the most fundamental remains misrepresentation, which as a contract law concept will be the focus of this article , particularly in the areas of :-

– What misrepresentation is.

– Factors that qualify a representation as a contractual term.

– Types of misrepresentation.

– Requirements for the establishment of misrepresentation.

– Remedies for misrepresentation.

What is a misrepresentation?

A misrepresentation in contract & torts law is a false statement or presentation of facts (which would otherwise be called a representation) made by one party to another party at the pre-contractual/negotiation stage which convinces the party to whom the false representation is made to enter into a contract. 

What are the types of misrepresentation?

A misrepresentation can either be :-

1). Fraudulent :- Made by a party with clear knowledge of the falsity of the representation made, usually with the intention to defraud the party to whom the representation is made.

2). Negligent :- Negligent misrepresentations are a default categorization which describes misrepresentations that are neither fraudulent nor innocent.

3). Innocent:- Innocent misrepresentations are made by a party which reasonably believes them to be true. 

What are the legal requirements that must be existent to prove a case of misrepresentation?

The requirements to prove misrepresentation are :- 

  1. An established duty to represent verified facts to a contracting party.
  1. A failure to satisfy this duty.
  1. A harm which must have resulted from a breach of this duty.

What are the factors that determine whether a representation has been made?

These factors include :-

– The reliance placed by one contracting party on a statement made by another contracting party.

– The reassurances advanced by a representing contractual party.

– The customary norms of the trade or service category forming the subject matter of a contract.

– The relative skillsets of the contracting parties.

Will Decentralized finance (DeFi) Shape Finance and Innovations?

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Decentralized finance (DeFi) is a fast-growing sector of the cryptocurrency industry that aims to provide financial services without intermediaries or centralized authorities. DeFi applications use smart contracts and blockchain technology to enable peer-to-peer transactions, lending, borrowing, trading, investing and more. DeFi has the potential to shape the future of finance and innovation by:

Offering greater access and inclusion to financial services for anyone with an internet connection and a compatible device.

Reducing costs and fees by eliminating middlemen and intermediaries that charge commissions or markups.

Increasing efficiency and transparency by leveraging distributed ledger technology and immutable records that can be verified by anyone.

Fostering innovation and experimentation by allowing anyone to create and participate in new financial products.

DeFi offers various benefits over traditional finance, such as faster transactions, lower fees, greater access, more privacy, and more innovation.

Decentralized finance (DeFi) is a revolutionary aim to transform the world of finance by creating a more open, transparent, and accessible system for everyone. DeFi will enable people to access financial services without intermediaries, such as banks, brokers, or regulators. This will reduce costs, increase efficiency, and empower individuals to control their own money.

DeFi will foster innovation and competition in the financial sector by allowing anyone to create and offer new products and services on public blockchains. This will increase the diversity and quality of financial options available to consumers and businesses.

DeFi will democratize finance by making it more inclusive and fairer for people who are underserved or excluded by the traditional financial system. This will improve financial inclusion, social justice, and economic development around the world.

DeFi will enhance the security and resilience of the financial system by relying on cryptography, smart contracts, and distributed networks. This will reduce the risks of fraud, corruption, hacking, and systemic failures that plague centralized institutions.

DeFi will facilitate cross-border collaboration and integration in the global financial market by enabling seamless and frictionless transactions across different currencies, jurisdictions, and platforms. This will improve liquidity, efficiency, and cooperation among various stakeholders in the financial ecosystem.

As DeFi involves new technologies and concepts that may have bugs, It is complex and experimental, vulnerabilities, or unintended consequences. DeFi is still a nascent and evolving field that faces many challenges and risks, such as scalability, security, regulation, and user education.

Some examples of DeFi infrastructure are:
Stablecoins: Cryptocurrencies that are pegged to a stable asset, such as the US dollar or gold, to reduce volatility and risk. Stablecoins enable users to store and transfer value on the blockchain without exposure to price fluctuations. Some examples of stablecoins are DAI, USDC, and Tether.

Smart contracts: Self-executing agreements that are written in code and run on a blockchain, eliminating the need for intermediaries and enhancing trust and efficiency. Examples: Ethereum, Solana, Cardano.

Decentralized applications (DApps): Applications that run on a distributed network and offer various financial services, such as lending, borrowing, trading, investing, and more. Examples: Uniswap, Compound, Aave.

Decentralized exchanges (DEXs): Platforms that allow users to swap one cryptocurrency for another without relying on a centralized entity or intermediary. Examples: Uniswap, Bancor, SushiSwap.

Lending platforms: Platforms that enable users to lend and borrow cryptocurrencies at variable interest rates without intermediaries. Examples: Compound, Aave, MakerDAO.

Synthetic assets: Assets that track the price of another asset without requiring the ownership or custody of the underlying asset. Examples: Synthetix, UMA, Mirror Protocol.

Oracles: Services that provide real-world data to smart contracts and DApps, such as price feeds, weather information, sports outcomes, etc. Examples: Chainlink, Band Protocol, API3.

Insurance: Services that offer protection against various risks in the DeFi space, such as smart contract bugs, hacks, or defaults. Examples: Nexus Mutual, Cover Protocol, Opyn.

Asset management: Services that help users manage their crypto portfolios and optimize their returns through automated strategies and algorithms. Examples: Yearn Finance, Zapper, DeFi Saver.

Crypto Banking, Insurance and Taxation

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Crypto banking and insurance are emerging fields that offer innovative solutions for financial inclusion, security and efficiency. Crypto banking refers to the provision of banking services such as deposits, loans, payments and transfers using cryptocurrencies or stablecoins as the medium of exchange.

Crypto insurance covers the risks associated with crypto assets, such as theft, hacking, loss of private keys or market volatility. This differs from traditional insurance; companies like Panda7 insurance provide free tools, and help people shop for the best home and auto insurance policy.

Taxation of crypto banking and insurance is a complex and evolving issue that depends on various factors such as the jurisdiction, the nature of the transaction and the type of crypto asset involved. Some of the common tax challenges for crypto banking and insurance are:

Determining the fair market value of crypto assets at the time of the transaction

Classifying crypto assets as income, capital gains, property or commodities for tax purposes

Reporting and accounting for crypto transactions in compliance with tax laws and regulations

Avoiding double taxation or tax evasion across different jurisdictions.

Crypto banking and insurance require careful planning and consultation with tax professionals to ensure compliance and optimization of tax liabilities. Crypto banking and insurance are emerging fields that offer innovative solutions for financial inclusion, security and efficiency. Crypto banking refers to the provision of banking services such as deposits, loans, payments and transfers using cryptocurrencies or stablecoins as the medium of exchange.

Crypto insurance covers the risks associated with crypto assets, such as theft, hacking, loss of access or regulatory changes. Taxation is a key challenge for both crypto banking and insurance, as there is no clear consensus on how to classify and treat crypto transactions for tax purposes. Different jurisdictions have different rules and regulations for crypto taxation, which may create confusion and complexity for crypto users and service providers.

Some of the common issues that arise in crypto taxation are:

How to determine the fair market value of crypto assets at the time of transaction.

How to track and report crypto transactions and gains/losses.

How to distinguish between personal and business use of crypto assets.

How to deal with cross-border transactions and tax treaties.

How to handle tax audits and disputes.

Crypto banking and insurance providers need to be aware of the tax implications of their activities and comply with the relevant laws and regulations in their jurisdictions.

Taxation is a key challenge for both crypto banking and insurance, as there is no clear or consistent framework for taxing crypto transactions and activities across different jurisdictions. Taxation issues include determining the tax status and value of crypto assets, reporting and filing requirements, tax implications of crypto lending and borrowing, and tax treatment of crypto insurance claims and premiums.

Crypto taxation in USA

Cryptocurrency is treated as property by the IRS and subject to capital gains and income tax. Every crypto transaction, such as selling, trading, mining, or receiving rewards, must be reported to the IRS using the appropriate forms. The tax rate depends on how long you held the crypto, how you acquired it, and your income bracket. You can deduct up to $3,000 of crypto losses per year from your taxable income.

You should use crypto tax software or consult a tax professional to calculate your crypto taxes accurately and efficiently. The IRS considers cryptocurrency as a form of property for tax purposes and requires reporting of all crypto-related income and gains. Depending on the type and duration of your crypto activity, you may owe capital gains tax or income tax on your crypto transactions.

The capital gains tax rate can range from 0% to 37%, depending on your income level and holding period. You can reduce your tax liability by offsetting your crypto gains with losses, up to a limit of $3,000 per year. You should keep track of all your crypto transactions and use reliable crypto tax software or a tax expert to prepare your tax forms correctly.

Crypto Taxation in Nigeria

Nigeria’s markets regulator has published a set of regulations for digital assets, signaling a middle ground between an outright ban and an unregulated use of crypto assets. The regulations classify crypto assets as securities regulated by the Securities and Exchange Commission (SEC) and require digital assets exchanges and custodians to obtain a “no objection” ruling from the commission.

The regulations also impose registration fees and other requirements for digital assets offerings and custodians. Nigeria’s central bank has banned banks and financial institutions from dealing in or facilitating transactions in crypto currencies, but the country’s young, tech-savvy population has adopted peer-to-peer trading to avoid the ban. Nigeria has launched a digital currency, the eNaira, which is backed and controlled by the central bank, unlike cryptocurrencies such as bitcoin.

The taxation of crypto assets in Nigeria is still unclear, as the existing tax laws do not adequately address the nature and characteristics of such assets. The Finance Bill 2022 proposes to amend the Capital Gains Tax Act to include gains from disposal of digital assets as taxable income. The Bill also proposes to amend the Companies Income Tax Act to include income from digital activities as taxable income for non-resident companies.

The Bill has not been signed into law yet, but it implies that individuals and companies that make gains or income from crypto assets will be subject to tax in Nigeria. There are different types of crypto taxes, such as airdrop taxes, crypto income taxes, crypto mining taxes, hard fork taxes, capital gains taxes, staking taxes etc.

The tax implications of crypto transactions depend on various factors, such as the type of asset, the frequency and purpose of trading, the residency and domicile of the taxpayer, the source and location of income etc. Taxpayers engaged in crypto dealings should keep accurate records of their transactions and consult tax professionals for guidance on their reporting and tax obligations.

 

Tekedia Capital Invests In Benin Republic-Based MeekFi

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Tekedia Capital is excited to announce that we have invested in Benin Republic-based MeekFi, a mobile money innovator: “Withdraw, Send, make Payment and a lot more with just a mobile money wallet.” The team enables cash withdrawal from an ATM with just a mobile money wallet while delivering cardless point of sale.

Our members bought out 100% of all available shares (oversubscribed by 5x).  The plan: win Francophone Africa’s second layer mobile money, by a great team.

Bonjour Cotonou, nous arrivons avec plus [hello Cotonou, we are bringing more stuff]. At Tekedia Capital, we’re funding the foundations of next Africa through entrepreneurial capitalism. We invest $$millions yearly. Learn what we do here

The ChatGPT’s OpenAI Marketplace Playbook

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The evolving ChatGPT’s OpenAI playbook: build a marketplace of AI companies, mimicking Google Play and Apple’s App Store. Yes, OpenAI is positioning itself as a platform upon which future mini-AI systems will run on. And it is doing the necessary: providing funding to ensure those entities congregate around it: “American artificial intelligence (AI) research laboratory company OpenAI has raised $175 million to invest in AI startups, with backing from Microsoft and other investors.”

SEC filing reveals that the fund which is managed by OpenAI CEO Sam Altman and COO Brad Lightcap, raised the money from 14 investors.

Notably, OpenAI has been investing in startups working in artificial intelligence for a while. The company launched the OpenAI startup fund and said it would seek to back companies pushing the boundaries of how powerful AI can positively impact the world and profoundly change people’s lives.

Statistically, that is a winning model since if you spread this money around, the diversity of the products will solidify the positioning of ChatGPT. In other words, you can have a plugin for Igbo vCooking mini-AI baked within ChatGPT with a team in Umuahia focused on that, instead of expecting ChatGPT’s SIlicon Valley team to do it all.

Business model wins empires. This OpenAI is unlocking great ones.