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COMMERCIAL AND INDUSTRIAL
LAW
 Contract Law
 Building and Engineering Contracts
 Law relating to sale of goods and international
sale of goods
 Company Law
 Law of agency
 Introduction to Factories Ordinance
 Safety of employees and duty of care
 Remuneration, EPF and ETF
 Law relating to trade unions
 Dispute settlement mechanism
COURSE
OUTLINE
Learning outcomes
 Describe the laws relating to the field of
industry
 Explain the different approaches of the above
mentioned laws
 Apply studies legal concepts in any give
problem or issue
 Analyze the legal background of the laws
 Highlight the problematic areas of the studied
laws
 Describe, compare, contrast and interpret the
relevant laws in any given question
What is Law?
 Rules and regulations of correct procedure
 It regularizes the actions of the members of a
country
 It is enforceable at court of law
 It imposes penalties
What Laws?
 Civil Law
The object of civil law is the redress of
wrongs by compelling compensation or
restitution: the wrongdoer is not
punished; he only suffers so much harm as
is necessary to make good the wrong he
has done.
The person who has suffered gets a definite
benefit from the law, or at least he avoids a
loss.
• Criminal Law
In criminal law, the main object of the law is
to punish the wrongdoer; to give him and
others a strong inducement not to commit
same or similar crimes, to reform him if
possible and perhaps to satisfy the public
sense that wrongdoing ought to meet with
retribution.
Difference between Civil Law and
Criminal Law
CIVIL LAW CRIMINAL LAW
Individual  Individual Individual  State
Civil Wrong Crimes against the State
Compensation Punishments -
Fine / Imprisonment / Both
Eg - Breaching a contract term Eg - Murder
 Saranapala stabbed Sumanawathie and he
stole sumanawathie’s gold watch.
 Piyal has an adulterous affair with Sunitha
 Jaya unlawfully accessed Sura’s computer and
obtained Sura’s personal data to be used to
insult him
 Nimal and Sarath entered into a contract.
Nimal intentionally breaches the terms of the
contract
 Akil and Anitha had a love affair and Akil
promised Anitha that he is marrying her after
their studies. But Akil did not marry Anitha
saying that she cheats on him.
 Dr Kawi performed an operation to save a
heart patient from dying. But Dr Kawi did not
inform the patient’s relations about the risks of
the operation. Operation failed and patient
died.
Who makes LAWS ?
 Sources of Law
Origin which something is ultimately derived and
often
What are the sources of law
THINK…
The Constitution – MAIN SOURCE
OF LAW
 The supreme law of the country
 Constitution sets out its governing authorities along
with their respective functions and responsibilities
 Three main organs of the State
- Executive
- Legislature
- Judiciary
 Sovereignty lies with PEOPLE
 Franchise
 Fundamental Rights of People
CONSTITUTION OF THE DEMOCRATIC SOCIALIST
REPUBLIC OF SRI LANKA
Statutes / Legislations
 This is law made by parliament directly in exercise
of the legislative power conferred upon it by the
Constitution.
 The product of parliament’s legislative process is
an Act of Parliament.
 Today there is a multiplicity of statutes which
regulate innumerable areas of activity.
 The words like “Ordinance”, “Act”, “Laws” are
used to describe legislations enacted by the
legislature of Sri Lanka.
 The term “Ordinance” refers to statutes
enacted before independence.
 The terms “Acts” and “Laws” refers to
legislation in the post-independence era.
- “Laws” – legislation enacted under
1972 Republican Constitution
- “Acts” – legislation enacted under
present 1978 Constitution
 Ex –
•Industrial Disputes Act No. 43 of 1950
•Penal Code
•Trusts Ordinance
•Administration of Justice Law No. 44 of 1973
Judicial Decision or Case Law
 Decisions of the courts of law can become a
source of law when they are followed as
binding precedents in later cases decided in
courts.
 They operate as binding precedents because
they provide the guidelines for decisions
making by judges in future cases that come up
before the courts.
 It is customary to refer to the decisions in the
earlier case as binding judicial precedents.
 When the principles of law pronounced in
judicial decisions are applied and interpreted
and are thus developed through a series of
cases which involve similar or identical factual
situations, a body of law is created in the
course of time, which becomes an important
source of law.
 Different jurisdictions adopt different
approaches to judicial precedent as a source of
law
Roman or Civil law Legal Tradition
 The bulk of law if contained in written codes or
treatises.
 The role of judiciary in developing law through
decided cases is more limited.
 Judges are called upon to use a deductive
method of judicial reasoning, since the
principles of law are already set out codes and
treatises.
Common Law Legal Tradition
 The common law is often described as “judge
made” law.
 Judicial method of deciding cases permits the
judge to ‘create’ or ‘make’ law
 Binding effect of an earlier decision by a court
of higher authority is referred to as the doctrine
of “Stare Decisis” – Let the earlier decision
stands.
Stare Decisis in Sri Lanka
 Common law concept of stare decisis entered
the Sri Lanka legal system because of the
English legal values used in the
administration of justice in the British period
of colonial rule.
 Courts have emphasized the importance of
the doctrine even in a context where the
structure of the judicial system has changed
over the years
Ex – Bandahamy vs. Senanayaka
Costa vs. Jayathilaka
What affects the doctrine of stare
decisis?
1. Hierarchy of Courts
2. There must be a system of Law Reporting
HIERARCHY OF COURTS
 The Supreme Court
The Supreme Court of the Republic of Sri Lanka skill be the highest and
final superior Court of record
 The Court of Appeal
Next to the Supreme Court, the Court of Appeal shall be the highest and
final superior court of record
 The High Court
The High Court is the only Court which exercise the jurisdiction of the
Court of First Instance and the appellate jurisdiction
The Magistrate’s Court
The District Court
The Primary Court
SYSTEM OF REPORTING
 Sri Lanka Law Reports
 New Law Reports
WHAT PART OF A CASE IS BINDING?
 Ratio decidendi
- Only the ratio decidendi is binding
- ratio decidendi means the facts treated
by the judge as material and on which his
decision is based
 Obiter dicta
- Obiter dicta is not binding
- Obiter dicta means a mere saying
not relevant to the central issue
R v Sathasivam
The Defendant charged with
murdering his wife.
Held – There must be
independent evidence that
Defendant had borne resent or
had given expression to his
resentment.
AG vs. Reid
Abeysundera vs.
Abeysundera
Opinions of Jurists
 Opinions of jurists are considered as a very
important source of the Roman law and
systems derived from Roman Law.
 They are the experts in relevant field of law.
 Ex - Hugo Grotius 1583 – 1645
- Johannes Voet 1647 – 1713
- Simon Van Leeuwen 1625 – 1682
- V.G. Van Keessel 1738 - 1816
EQUITY
 Equity means fair and just
 Sometimes law is rigid and that are ineffective
to ensure justice. It is at that point a body of
equitable principles developed.
 Equity comes in true form to mitigate the rigors
of strict law.
 Ex - In Sri Lanka equitable principles are
followed in Labour Tribunals
Customs
 Custom in a general sense refers to the
customs of a community in regard to a wide
rage human activity.
 Indigenous customary laws of Sri Lanka are
- Kandyan Law
- Tesawalamai
- Muslim Law
Recognition of customs as a
source of law
1) There must be evidence that the custom
exists with certainty and continuity
2) There must be evidence that a custom is an
ancient one
3) The custom established must not be
unreasonable
4) The custom must not conflict with statute law
5) Custom must not conflict with Common Law
RELIGION
• Hinduism, Buddhism and Islam have
influenced the legal development of Sri
Lanka
Ex:
- The Buddhist Temporalities
Ordinance
- Muslim Law
• Some parts of English law and Roman
Dutch Law has been highly influenced by
Canon law
Sources of Law
Statutes
Constitution Judicial
Decisions
Opinions
Of Jurists
Customs
Equity
Religion
THANK YOU

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Commercial and Industrial Law Course Outline

  • 2.  Contract Law  Building and Engineering Contracts  Law relating to sale of goods and international sale of goods  Company Law  Law of agency  Introduction to Factories Ordinance  Safety of employees and duty of care  Remuneration, EPF and ETF  Law relating to trade unions  Dispute settlement mechanism COURSE OUTLINE
  • 3. Learning outcomes  Describe the laws relating to the field of industry  Explain the different approaches of the above mentioned laws  Apply studies legal concepts in any give problem or issue  Analyze the legal background of the laws  Highlight the problematic areas of the studied laws  Describe, compare, contrast and interpret the relevant laws in any given question
  • 4. What is Law?  Rules and regulations of correct procedure  It regularizes the actions of the members of a country  It is enforceable at court of law  It imposes penalties
  • 5. What Laws?  Civil Law The object of civil law is the redress of wrongs by compelling compensation or restitution: the wrongdoer is not punished; he only suffers so much harm as is necessary to make good the wrong he has done. The person who has suffered gets a definite benefit from the law, or at least he avoids a loss.
  • 6. • Criminal Law In criminal law, the main object of the law is to punish the wrongdoer; to give him and others a strong inducement not to commit same or similar crimes, to reform him if possible and perhaps to satisfy the public sense that wrongdoing ought to meet with retribution.
  • 7. Difference between Civil Law and Criminal Law CIVIL LAW CRIMINAL LAW Individual  Individual Individual  State Civil Wrong Crimes against the State Compensation Punishments - Fine / Imprisonment / Both Eg - Breaching a contract term Eg - Murder
  • 8.  Saranapala stabbed Sumanawathie and he stole sumanawathie’s gold watch.  Piyal has an adulterous affair with Sunitha  Jaya unlawfully accessed Sura’s computer and obtained Sura’s personal data to be used to insult him  Nimal and Sarath entered into a contract. Nimal intentionally breaches the terms of the contract
  • 9.  Akil and Anitha had a love affair and Akil promised Anitha that he is marrying her after their studies. But Akil did not marry Anitha saying that she cheats on him.  Dr Kawi performed an operation to save a heart patient from dying. But Dr Kawi did not inform the patient’s relations about the risks of the operation. Operation failed and patient died.
  • 10. Who makes LAWS ?  Sources of Law Origin which something is ultimately derived and often
  • 11. What are the sources of law THINK…
  • 12. The Constitution – MAIN SOURCE OF LAW  The supreme law of the country  Constitution sets out its governing authorities along with their respective functions and responsibilities  Three main organs of the State - Executive - Legislature - Judiciary  Sovereignty lies with PEOPLE  Franchise  Fundamental Rights of People CONSTITUTION OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA
  • 13. Statutes / Legislations  This is law made by parliament directly in exercise of the legislative power conferred upon it by the Constitution.  The product of parliament’s legislative process is an Act of Parliament.  Today there is a multiplicity of statutes which regulate innumerable areas of activity.  The words like “Ordinance”, “Act”, “Laws” are used to describe legislations enacted by the legislature of Sri Lanka.
  • 14.  The term “Ordinance” refers to statutes enacted before independence.  The terms “Acts” and “Laws” refers to legislation in the post-independence era. - “Laws” – legislation enacted under 1972 Republican Constitution - “Acts” – legislation enacted under present 1978 Constitution  Ex – •Industrial Disputes Act No. 43 of 1950 •Penal Code •Trusts Ordinance •Administration of Justice Law No. 44 of 1973
  • 15. Judicial Decision or Case Law  Decisions of the courts of law can become a source of law when they are followed as binding precedents in later cases decided in courts.  They operate as binding precedents because they provide the guidelines for decisions making by judges in future cases that come up before the courts.  It is customary to refer to the decisions in the earlier case as binding judicial precedents.
  • 16.  When the principles of law pronounced in judicial decisions are applied and interpreted and are thus developed through a series of cases which involve similar or identical factual situations, a body of law is created in the course of time, which becomes an important source of law.
  • 17.  Different jurisdictions adopt different approaches to judicial precedent as a source of law Roman or Civil law Legal Tradition  The bulk of law if contained in written codes or treatises.  The role of judiciary in developing law through decided cases is more limited.  Judges are called upon to use a deductive method of judicial reasoning, since the principles of law are already set out codes and treatises.
  • 18. Common Law Legal Tradition  The common law is often described as “judge made” law.  Judicial method of deciding cases permits the judge to ‘create’ or ‘make’ law  Binding effect of an earlier decision by a court of higher authority is referred to as the doctrine of “Stare Decisis” – Let the earlier decision stands.
  • 19. Stare Decisis in Sri Lanka  Common law concept of stare decisis entered the Sri Lanka legal system because of the English legal values used in the administration of justice in the British period of colonial rule.  Courts have emphasized the importance of the doctrine even in a context where the structure of the judicial system has changed over the years Ex – Bandahamy vs. Senanayaka Costa vs. Jayathilaka
  • 20. What affects the doctrine of stare decisis? 1. Hierarchy of Courts 2. There must be a system of Law Reporting
  • 21. HIERARCHY OF COURTS  The Supreme Court The Supreme Court of the Republic of Sri Lanka skill be the highest and final superior Court of record  The Court of Appeal Next to the Supreme Court, the Court of Appeal shall be the highest and final superior court of record  The High Court The High Court is the only Court which exercise the jurisdiction of the Court of First Instance and the appellate jurisdiction
  • 22. The Magistrate’s Court The District Court The Primary Court
  • 23. SYSTEM OF REPORTING  Sri Lanka Law Reports  New Law Reports
  • 24. WHAT PART OF A CASE IS BINDING?  Ratio decidendi - Only the ratio decidendi is binding - ratio decidendi means the facts treated by the judge as material and on which his decision is based
  • 25.  Obiter dicta - Obiter dicta is not binding - Obiter dicta means a mere saying not relevant to the central issue
  • 26. R v Sathasivam The Defendant charged with murdering his wife. Held – There must be independent evidence that Defendant had borne resent or had given expression to his resentment.
  • 27. AG vs. Reid Abeysundera vs. Abeysundera
  • 28. Opinions of Jurists  Opinions of jurists are considered as a very important source of the Roman law and systems derived from Roman Law.  They are the experts in relevant field of law.  Ex - Hugo Grotius 1583 – 1645 - Johannes Voet 1647 – 1713 - Simon Van Leeuwen 1625 – 1682 - V.G. Van Keessel 1738 - 1816
  • 29. EQUITY  Equity means fair and just  Sometimes law is rigid and that are ineffective to ensure justice. It is at that point a body of equitable principles developed.  Equity comes in true form to mitigate the rigors of strict law.  Ex - In Sri Lanka equitable principles are followed in Labour Tribunals
  • 30. Customs  Custom in a general sense refers to the customs of a community in regard to a wide rage human activity.  Indigenous customary laws of Sri Lanka are - Kandyan Law - Tesawalamai - Muslim Law
  • 31. Recognition of customs as a source of law 1) There must be evidence that the custom exists with certainty and continuity 2) There must be evidence that a custom is an ancient one 3) The custom established must not be unreasonable 4) The custom must not conflict with statute law 5) Custom must not conflict with Common Law
  • 32. RELIGION • Hinduism, Buddhism and Islam have influenced the legal development of Sri Lanka Ex: - The Buddhist Temporalities Ordinance - Muslim Law • Some parts of English law and Roman Dutch Law has been highly influenced by Canon law
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  • 35. Sources of Law Statutes Constitution Judicial Decisions Opinions Of Jurists Customs Equity Religion