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Introduction and sources of business law
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- 2. • Business lawconsists of all laws that dictate how to form and run a business. • Business law includes state law and federal laws.
- 3. • When aperson plan on entering into an agreement with another person, he or she needs to know the formalities necessary to create an enforceable agreement.
- 4. • Business peopleneed to understand the nature and consequences of the documents they are signing. • Sometimes business people end up in court because they have entered into a transaction without consulting a lawyer.
- 5. • Business lawincludes all of the laws that govern how to start,buy,manage and close or sell any type of business.
- 6. Meaning of businesslaw • Business law is also called as commercial law or mercantile law which regulates business activities. • Business law is that portion of the legal system which guarantees an orderly conduct of business affairs and settlement of legitimate dispute in a just manner
- 7. Definition of businesslaw • According to S.R Davar,”Mercantile law means that branch of law which is applicable to or concerned with trade and commerce in connection with various business transaction”
- 8. • It refersto law that governs the dealings between people and commercial matter. • There are two distinct areas of business law, they are: regulation of commercial entity and regulation of commercial transaction.
- 9. Nature of law •Everyone in society is subject to a variety of rules. • Not all of these rules are laws. • Eg: many religions set rules of behaviour
- 10. • Violating theserules,doesnot mean that a person has violated the law. • Rules cannot be enforced in court. • If a person violates a law, the court generally imposes some form of penalty called a sanction.
- 11. • Sanctions requirea person to do or not to do something.(eg: buying & selling) • To pay money to someone else (eg: divorce) • To impose a prison sentence(eg: theft)
- 12. Sources of BusinessLaw • Indian mercantile law is based largely upon the English mercantile law
- 13. • 1)English mercantilelaw Common law Equity Statute law Case Law Merchant law
- 14. • 2) Customsand usages • 3) Natural law • 4) Constitution laws
- 15. English law • Mostof the Indian Business laws are based on English law • Many rules of English law have been incorporated into Indian law. Eg:Indian Penal Code formulated by the British ,forms the backbone of criminal law in India.
- 16. The sources ofEnglish law are as follows Common law • It refers to the law that is developed through decisions of the court rather than relying on statute. • It is created by judges • It is also called judge made law • It is the oldest unwritten law
- 17. Statute/legislation • A statuteis a law passed by a legislative body. • It is a written law • Both parliament and state assemblies have enacted number of legislations. Eg: Indian Contract Act 1872,Competition Act 2002
- 18. Equity • Many yearsago court was divided into court of law and court of equity. • People went to law courts for monetary damages. • People who desired some remedy other than money went to equity court.
- 19. • It isalso unwritten law. • Here justice is developed by the judges whose decisions become precedents. • Eg: A person enters into a contract to purchase a painting and pays the amount, but the seller refuses to deliver the painting, buyer may file a suit, now court ask the defendant to deliver the painting.
- 20. Case law • Itis a law that comes from decisions made by judges in previous cases. • This is a source of law based upon previous judicial decisions which have to be followed in similar future cases.
- 21. Law merchant • Itis a branch of law which was based on customs and usages prevalent among merchant. • It defines the rule to be followed in all contracts, purchase and sales agreements, shipping requirement.
- 22. Natural law • Noman can be punished twice for same crime. • No man is guilty unless the charges are proved.
- 23. Customs and usage •It plays an important role in regulating business transaction. • When custom is accepted by a court,it becomes a law.
- 24. Constitution law • Constitutionis the fundamental law of the nation. • Central and state laws should be within the limitation of Indian constitution law.
- 25. Scope of businesslaw • The scope of mercantile law is very wide and varied. It includes law relating to contracts, partnership, sale of goods, negotiable instruments, companies etc.
- 26. • The IndianContract Act,1872 • The Sale of Goods Act,1930 • The Partnership Act,1932 • The Negotiable Instruments Act,1881 • The Companies Act,1956 • The Patents Act,1970 • The Trade and Merchandise Marks Act,1958 • The Consumer Protection Act,1986 • Environmental Protection Act,1986