This document provides an introduction to business law. It discusses how the need for a uniform code of conduct arose as human civilization became more social and complex. Business law originated from various sources, including customs of trade, English common law, principles of equity, law merchant, British statute law, and precedents set by past judicial decisions. The key branches of law are civil, criminal, constitutional, international, industrial, and mercantile law. Business law specifically governs commercial activities and trade. The objectives of business law are to develop an understanding of the legal framework for complex business environments and prevent issues. The introduction of Indian statute law also led to modifications of business law in India.

1. Vikas Dongre

2. Introduction
 Human Race is socialistic in nature
 Early Civilizations started in settlements
 Man learnt Business to make his/her life comfortable
 Need arose for a uniform code of conduct
2Class Notes - Business Law Presented by: Vikas Dongre

3. Meaning
Law is a rulebook, containing a list of
Code/Rules/Procedures, which tells us what should be
done and what should not be done.
Law is a system of rules, usually enforced through a set
of institutions
Law is a force. It consists of rules and regulations to
provide firmness to mutual relations.
3Class Notes - Business Law Presented by: Vikas Dongre

4. Definition
“Law is a body of Principles recognized and applied by
the state in the administration of justice” - Salmond
“Law is a rule of civil conduct, prescribed by the supreme
power of a state, commanding what is right and
prohibiting what is wrong” - Blackstone
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5. Branches
 Growth of Civilization led to development in diverse fields
 As result a Uniform Code of Conduct did not make sense
Hence,
i. Civil Law
ii. Criminal Law
iii. Constitutional Law
iv. International Law
v. Industrial Law
vi. Mercantile Law (Business law)-Part of Civil Law(India)
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6. Meaning of Business
All those activities which are aimed at transfer of
goods & services from the production centre to
consumption centre carried out by an entrepreneur by
optimally utilizing resources at his command i.e.
money, man, material & machine with a view to
maximize profit.
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7. Meaning of Business Law
Laws relating to business, commercial
activity, trade or commerce.
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8. Objectives of Business Law
 Complex Business environment has given rise to the need
for a code of conduct
 IGNORANTIA JURIS NON EXCUSAT
---ignorance of Law is no excuse.
 Develop an understanding of the legal framework
 Understand the purpose and logic of Law-Meaningful
when understood
 Preventive Law
 The Success of lawyer depend upon the well informed
client
 Build a better society
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9. Sources of Business Law (Origin
and Development)
 Customs of Trade (History)
 English Common Law
 Principles of Equity
 Law Merchant
 British Statute Law
 Precedents (Past Judicial Decisions)
 Indian Statute Law (Acts of the Indian Legislature)
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10. Customs of Trade (History)
 customs and traditions, laid the first foundation to the
Law
 which are reasonable in nature to the entire society
and which are time tested
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11. English Common Law
 Considering the customs and usages as the raw
material, the judges made up their judgments. These
important contributions of the judges are found in
what is known as English Common Law
 Decisions made by judges based on English customs
and traditins
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12. Principles of Equity
 law based on principles of justice and good conscience
 unwritten law
 cases where the common law courts could not give
relief to the aggrieved, the party had to petition to the
king
 courts were called courts of equity
 relief was granted to the aggrieved on the basis of
justice, good conscience and equity
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13. Law Merchant
 Law based on customs and traditions which were
practiced by the traders- not recognized initially but
later made an impact
 Initially English Law courts were not aware of the
trades and practices - many times futile in giving
judgments in case of conflicts
 As trade grew - traders set up tribunals mostly
consisting of traders to judge the cases
 This gave birth to Law Merchants (Lex Mercatoria).
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14. British Statute Law
 Law which is based upon Acts passed by the
Legislature (Parliament). It is the Written Law. This
Law is superior and can override the effect of other
laws
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15. Precedents (Past Judicial
Decisions)
 Past Decisions or judgments are called precedents
 precedents are often referred to when giving decisions
on similar cases
 India the Supreme Court is the apex court and its
decisions have a binding effect on all the lower courts
 principle is that when a decision is given on one case it
implies that it has a binding effect on cases with
similar circumstances
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16. Indian Statute Law (Acts of the
Indian Legislature)
 the Acts passed by the Indian legislature becomes the
basis for many modifications in the Indian Business
Law
 Indian Contract Act 1872
 The Negotiable Instruments Act 1881
 The Sale of Goods Act 1930
 The Indian Partnership Act 1932
 The Companies Act 1956
 Etc…
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17. End of General Introduction
 Questions…
 Clarifications…
 Suggestions…
Email: vikasdongre@gmail.com
17Class Notes - Business Law Presented by: Vikas Dongre