This document provides an introduction to business and labour law. It discusses the key differences between criminal and civil liability. Criminal law deals with crimes and punishment, while civil law regulates disputes and provides compensation. It also summarizes the main sources of law, including legislation, precedent, customs, common law, and equity. Equity developed to provide remedies that were not available under common law. While courts have merged common law and equity, they remain distinct approaches.

1. Business & Labour Law
Recommended Text Box
Business Law by Khalid Mehmood Cheema
Course Assessment:
Quizzes: Minimum 5 quizzes 10 Marks
Mid Term 30 points
Final 40 points
Project 20 Marks

2. Nisar A. Mujahid
Advocate Supreme Court of Pakistan
Corporate, Legal and Policy Consultant,
International Trainer in :-
•Business Management & Intelligence
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nisaramujahid@gmail.com
0334-3637799

3. Law : An Introduction
It refers to a rule of conduct or a procedure
established by custom, agreement or an
authority for :-
a) Protecting the rights and property of
members of a society.
b) Enforcing their mutual contracts
c) Holding them liable for their wrongs

4. Law : An Introduction
The term liability has two aspects:-
(a) Criminal liability
(b) Civil liability
Distinction between criminal and civil liability is
central to the legal system and to the way in
which court system is structured.
Objectives of each category of law are different

5. Law : An Introduction
Criminal Law
• Crime is an act prohibited by law
• Criminal case is prosecuted by is usually
the state, but can be through private complain.
• Person found Guilty is punished with fine or
imprisonment or both.
• Burden of proof, beyond the shadow of doubt lies
on the state
• Prosecution is impleaded as “The state” or the
complainant’s name.

6. Law : An Introduction
Criminal Law
• Sharia law contains the concept of:-
“QISAS” (RETRIBUTION),
In certain cases, gives legal right to
inflict on the wrongdoer same hurt as he
perpetrated on Person the victim, or get
“DIYAT” (COMPENSATION), instead.
• Western law focus on punishment, where
victims have to proceed under civil law
action for compensation.

7. Law : An Introduction
Civil Law
• Civil law exists to regulate disputes over
the rights and obligations of persons
dealing with each other.
• State has no direct role in dispute over, for
instance, a breach of contract.
• It is up to the persons involved to settle
the matter in the courts if they so wish.

8. Law : An Introduction
Civil Law
• Purpose of this course of action is
generally to determine the rights and
impose a settlement on matters either by
 financial compensation in the form
of damages
 injunctions other orders
• There is no concept of corpus punishment.

9. Law : An Introduction
Civil Law
• Case must be proven on the “Balance of
Probability”.
• Absolute proof or proof beyond doubt is
not required.
• Only more probability in favor of one
party over other has to be convinced to
the court.
• Burden of proof may shift between the
two parties.

10. Law : An Introduction
Civil Law
• Terminology as compared to criminal
cases is different. Here “Plaintiff sues the
Defendant”.
• Most important areas of civil liability
include “law of contract” and “law of
tort”.

11. Law : An Introduction
Contract
• It is a relationship between two parties.
• It is a legally binding agreement, breach of
which infringes one person’s legal right
given by the contract to have it
performed.

12. Law : An Introduction
Tort
• It is a wrong committed by one person
against another, infringing the general rights
given to him by the law.
• No need to have any pre-existing relationship
between plaintiff and defendant before the
tort was committed.
• Most significant tort is “Tort of Defamation”

13. Law : An Introduction
Distinction between Criminal and Civil Cases
• It is not an act or event which creates the
distinction, but the legal consequences of the
act or event.
• A single event might give rise to criminal and
civil proceedings simultaneously.
• Example : A broken leg caused to a pedestrian by
a drunken driver is a single event which may
give rise to a criminal as well as a civil case.

14. Law : An Introduction
Distinction
criminal case : prosecution by the state for the on
between Criminal and Civil Cases
• ffence of driving with alcohol.
• civil case : pedestrian sues for
compensation for pain and suffering
caused by the wrong
• Burden of proof in rules of evidence are very
strict in case of criminal case for example a
confession would be carefully examined for
traces of pressure on accused.

15. Law : An Introduction
Distinction between Criminal and Civil Cases
• Admission in a civil court will not be
subject to strict scrutiny of the standard of
criminal case.

16. Law : An Introduction
Sources of Law
• The law is not static but changes and
develops, reflecting the values and
institutions of each era.
• Main purpose and effect of law is to
define and safeguard rights of property
and to uphold public order.

17. Law : An Introduction
Sources of
Law
Material
Sources
Legal
Sources
Legislation Precedent Customs Agreement
Historical
Sources
Common
Law
Equity
Formal
Sources

18. Law : An Introduction
Formal Sources of Law
• It is the will of the state as manifested in
statutes or decisions of the courts.
Material Sources of Law
• These sources are those from which it
derived the matter. They are of two kinds;
legal and historical sources.

19. Law : An Introduction
Historical Sources of Law
• There are two kinds; Common law and
Equity.
Common Law
• King Norman of England in 1066
developed system of common law.

20. Law : An Introduction
Common Law
• Till 1285, only writs against established
forms only. After, 1285 slight relaxation
given that similar new forms of writs can
be issued provided they are similar to the
existing forms.
• System was rigid and proved to be
inadequate means of providing justice.

21. Law : An Introduction
Equity
• Where people failed to get remedy in
common law court, petitioned to King for
relief by direct royal intervention. This
created concept of equity.
• Equity was based on fair dealings between
two individuals as equals, however, it was
not a complete alternative of common
law.

22. Law : An Introduction
Equity
• Equity was a method of adding and
improving common law.
• Interaction between common law and
equity brought three major changes.
 New Rights: Equity recognized and
protected rights for which common law
gave no safeguards.

23. Law : An Introduction
Equity
 For example : “A” transferred
property to the legal ownership of
“B” to pay the income of the property
to “C” (in modern law “B” is
trustee for “C”), the common law
simply recognized that “B” was the
owner of the property and gave no
recognition to “B’s” obligation to “C”.
Equity however, recognize the “B’s”
obligation to “C”.

24. Law : An Introduction
Equity
 Better Procedure : Equity could be
more effective than common law in
bringing a disputed matter to decision.
 Better Remedies : Alternate remedies
other than monetary compensation for
the successful plaintiff was able to be
ordered by Equity, such as:-
(i) to do what has agreed to do
(specific performance)

25. Law : An Introduction
Equity
(ii) to abstain from wrongdoing
(injunction)
(iii) to alter a document so that it
reflects the parties’ true
intentions (rectifications)
(iv) to restore the pre-contract status
quo (rescission)

26. Law : An Introduction
Relationship between the common law & Equity
 Now the courts of common law and
equity have been amalgamated,
however, both remain distinct.
 Where common law applies, it tends to
be automatic in its effect.

27. Law : An Introduction
Relationship between the common law & Equity
 Equity recognizes common law, as it
always did; it sometimes offer an
alternate solution.
 The courts have discretion as to
whether or not they will grant an
equitable remedy in lieu of a common
law one.