The document provides an overview of the Bangladeshi legal system and commercial law. It discusses: 1. The types of legislation in Bangladesh including acts passed by parliament, ordinances, and rules. 2. The definition of law and key characteristics such as attempting to regulate human conduct. 3. The main sources of law including customs, religious laws, precedents, and legislation. 4. The different areas of commercial law that govern business transactions and types of legal situations that can arise.

1. Legal Environment of Business!!!
Debashis Saha
Associate Professor
Dept. of Finance & Banking
Jahangirnagar University
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2. 2
• Office Hours
– Sunday to Thursday
– 9:30 AM to 1:00 PM
– or by appointment
• E-Mail
– debashissaha1986@gmail.com
• Mobile
– 01722898847
Finding Me

3. 3
– Legal Environment Of Business, Ahamuduzza
man & Rubaiyet Hasan Khan
– Commercial Law & Industrial Law, Arun Kum
ar Shen & Jitendra Kumar Mitra
– Business Law of Bangladesh, Asaduzzaman
– Some handouts
Text and Resources

4. 4
Lecture- 01
Introduction to Legal Environ
ment of Bangladesh

5. Law & Legislation
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Legislation
Legislature The place where the law is made
Bangladesh
Law
Prepared by Parliament or Executive or
der
Types of Legislation
Supreme legislation (eg:
Constitution)
Subordinate legislation (e
g: Contingent or conditio
nal legislation)
Means the act or process of law making

6. 6
What is “The Law”?
• Rules of permissible conduct, limits on allowable
conduct
- Not the same as a moral limit or rule, but is
supposed to be reflective of morals and
ethics
- But we all know there are many things that
you can do, but should not do.
The Law Ethics
• A system of rules, usually enforced through a set
of institution

7. Definition of Law
Article- 152:
“Law” means any Act, ordinance, order, rule, regulation, bye-law, notificatio
n or other legal environment, and any custom or usage, having the force of la
w in Bangladesh
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According to Domrdyhenes:
“Law is something which man ought to obey for many reasons and ch
iefly because every law is both a discovery and a gift of God, and teac
hing of wise men and setting right or wrong intended and not intende
d, but also common agreement of the state according which every one
in the state ought to live”
According to Professor Holland:
“Law is the rule of external human action enforced by the sovereign political
authority”

8. • A rule relating to the actions of human bein
gs
• Attempts to regulate the external actions of
human beings
• Enforced by the state
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Characteristics of Law

9. Objectives of Law
According to Sir William R. Anson:
The object of law is order and the result of ord
er is that men are enabled to look ahead with s
ome sort of security as to the future. Although
human action cannot be reduced to the unifor
mities of nature, men have yet endeavoured to
reproduct by law something approaching to hi
s uniformity
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10. Rule of Law
• Is the legal principle that law should govern a n
ation, as opposed to arbitrary decision by indivi
dual decisions
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• Refers to the influence and authority of law wit
hin society, particularly as a constraint upon be
havior, including behavior of government offici
als
Aristotle advocated the rule of law
It is more proper that law should govern than any one of the cit
izens: upon the same principle, if it is advantageous to place the
supreme power in some particular persons, they should be app
ointed to be only guardians, and the servants of the laws.

11. Rule of Law
Rule 1: Abolition of autocracy: “No man is above
law”. Dicey said:What is law legal right and legal o
bligation for me-must hold equality as such for all cit
izens
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• The concept of equality of all persons before la
w is the basis of the Rule of Law
• The Rule was summarized by Dicey : “Rule of l
aw in the United Kingdom is a core principle of th
e way the country is governed”

12. Rule of Law
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Rule 2: Punishment subject to prove: “No man is
punishable or can be lawfully made to suffer in body
or goods except for a distinct breach of law establish
ed in the ordinary legal manner before the ordinary c
ourts” ( Dicey)
Rule 3: Origin of Constitutional Laws: the Rule of
Law is the result of statutes and judicial decisions det
ermining the rights of private persons. Thus the const
itutional law of the country follows from the ordinar
y law of the land
The phrase can be traced back to the 16th century England and it was
popularized in the 19th century by British jurist A.V. Dicey

13. Types of Law
Law
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Contract Law (r
egulates the relationship betwee
n the parties)
Trust Law
(applies to assets held for investme
nt & financial security)
Constitutional La
w ( Provides a framework for cr
eating laws, protecting people’s hu
man rights and electing political r
epresentatives)
Administrative
Law (relates to the activities
of administrative of government)
Property La
w (defines rights and obli
gations related to transfer a
nd title of personal and real
property)
Tort Law (allows
claims for compensation whe
n someone or their property i
s injured or harmed by negli
gence, nuisance, defamation e
tc)

14. Classification of Law
Law
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Substantive Law(defines
rights or crimes) & Procedur
al Law ( determines the outlines
the procedures of litigation
Subordinate Law (enact
ed by the subordinate authority und
er the power delegated to it by the s
upreme legislative authority)
International Law (de
termine the conduct of the general bo
dy of civilized state in their mutual de
alings)
Supreme Law
(Bangladesh constitution is th
e supreme law of the Land)
Special executive L
aw (president may enact law
eg: order, rule etc.)
National Law (discus
ses with the domestic matters
of a particular state)
Private Law (det
ermines and govern the
relations of citizens)
Public Law (determines
& regulates the organization and fu
nctioning of the state and its relatio
nship with the citizens’
Private Law (discusse
s with the relationship of the c
itizen of one state with other)
Public Law (implies the bod
y of rules which the states have esta
blished in their mutual dealings an
d relations)

15. Terms
Act
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Is a law which is passed by the parliament (Article 65)
Ordinance The law which is promulgate by the President when the parl
iament stands dissolved or is not in session ( Article-93)
Order A law which is promulgate by the president when there is n
o constitution ( Laws continuance order, 10th April 1971)
Rule A law which shall mean a rule made in exercise of a power
conferred by any enactment and shall include a regulation
made as a rule under any enactment ( Section (3) 47 Of the
General Clauses Act 1897)

16. Regulation
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A law which shall mean a regulation made by any person or auth
ority empowered under any constitutional instrument and in forc
e in Bangladesh (Section (3) 47 Of the General Clauses Act 189
7)
Is a rule of conduct which the governed observe spontaneously a
nd not in pursuance of law settled by a political superior (Marria
ge Ceremony)
Usage The behavior of a particular society in respect of a particular mat
ter which they observe for long time spontaneously (Gaye Holoo
d)
Precedent The judicial decision which is passed by the superior court and i
s binding upon the subordinate court (Article-11 of the constitut
ion judgment passed by the Appleate Division and High Court
Division is precedent)
Custom

17. Legal Systems
• Derives from jus civile of Roman law
• The body of definite rules which are given in modern civil codes
• According to Salmond : “ the law of the state or the land, the law of lawye
rs and the law of courts”
• Source: France , Germany, Italy, Spain and other continental countries o
f Europe and also the countries of south and central America, Japan, Tur
key etc
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Civil Law
• Derives from the law of England and of those countries which have model
ed their system on English Law
• According to Salmond: “ The common law is the entire body of English la
w, the total corpus juris angliae with three exceptions namely (1) Statute l
aw, (2) equity, (3) special law in its various forms
• Also known as English, Anglo Saxon or Anglo American or Anglo Indian
law
• Consists of those rules which have been administered by common law cou
rts from time immemorial
Common
Law
• The law which determines the religious of human beings through religion
• Eg: Muslim Law ( Islamic Sharia)
Religious
Law

18. Sources of Law
Custom
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• Describe as the twilight of law which resides in habitual practice and usage. (1) antiq
uity (2) reasonableness (3) conformity with statutory law (4) observation as a right (
5) consistency with morality and public policy
Religion
• According to jurists : “every law is the gift of god and the decision of the sages”
• In Bangladesh the Hindus and Muslims personal affairs are regulated by their religi
on e.g. marriage, dower, gift etc.
Equity • Means natural justice
• In England there were three main courts : (1) The King’s Bench, (2) The
Court of common Pleas, (3) The exchequer
Precedent
• Means the judge made law
• When there is no legislature on particular point which arises in changing conditions,
the judges depend on their own sense of right and wrong and decide the disputes. Su
ch decisions become authority or guide for subsequent cases of a similar nature and
they are called precedents
• It is more flexible than legislation and custom
Scientific discus
sion of the juris
ts
• Influences and moulds the law
• Influence of great writers like Glanvil, Bracton, Littleton,Coke, Chesire,
Pollock,Salmond can be seen on English, French and American Law
Legislation – Parliament enacts the law

19. Introduction to Commercial Law
Commercial
Law
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• Known as business law
• the body of law that applies to the rights, relations,
and conduct of persons and businesses engaged in c
ommerce, merchandising, trade, and sales
• The body of law which governs business and comme
rcial transactions
• Considered to be a branch of civil law and deals bot
h with issues of private law and public law
• Includes: principal and agent, carriage by land and
sea, merchant shipping, guarantee, marine, fire, life
and accident insurance, bills of exchange and partn
ership

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Role of Law in Business
The ways in which the law affects business are as
numerous as the number of laws themselves
Enron, Worldcom, Tyco (Business structure)
The McDonald’s coffee spill (Torts)
Grace Inc. and “A Civil Action” (Environmental)
Limit of VOC content in underarm deodorant (P
roduct regulation)
Employees not paid overtime (Employment law)
Customer refuses to pay (Contracts)

21. What is Business?
• A system through which a person can earn money, gain pr
ofit or make losses by investing his capital
• Types of Business
(1) Proprietorship business (licenses will be provided by the local autho
rities e.g. Municipal corporation or Union Parishad)
(2) partnership business ( Partnership Act,1932)
(3) Company Business ( Company Act, 1994 or Bank Company’s Act 1
991)
(4) Cooperative Buisiness (Cooperative Societies Act,2001)
(5) Non-profitable Business ( Society Registration Act,1860 or NGO’s o
r trusts or Wakfs etc)
(6) State Owned business ( Various statutory Laws e.g. BTRC)
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Types of Legal Situations
Transactional
Situational
Negotiation of contracts, purchases etc.
(these tend to occur in more informal settings)
Reactionary events such as claims made by someone else aga
inst you or you against them.
(these tend to occur in more formal settings such as law suits,
criminal accusations, etc.)

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Types of Law- Nature
Substantive Law vs Procedural Law
Defines rights and du
ties
Explains how to mak
e the law work
Ex: “You may not driv
e greater than the poste
d speed limit”
Ex: “To challenge a traffic
citation you must pay the
established bail amount b
y the deadline and indicat
e that you require a hearin
g”

24. How the Bangladesh judiciary f
unctions?
Superior Judiciary Sub-ordinate Judiciary
Appellate D
ivision
High Court
Division
Civil
Jurisdiction
Administrative
Jurisdiction
Criminal
Jurisdiction
1.Court of District Judge
2.Court of Additional District
Judge
3.Court of Joint District Judge
4.Court of Senior Assistant Ju
dge
5.Court of Assistant Judge
The Magist
racy
The Court of
Session
1.Administrative Appellate T
ribunal.
2.Administrative Tribunal.
3.The Electricity court.
4.House Rent Controller.
5.The settlement Court.
6.The Land Appeal Board.
7 The Labour Court
1.Court of Chief Judicial Magistrate
2.Court of 1st Class Judicial Magistrate
3.Court of 2nd Class Judicial Magistrate
4.Court of 3rd Class Judicial Magistrate
The Judicia
l Magistrate
The Ex
ecutive
Magist
rate
1. Court of Se
ssion Judge
2. Court of Ad
ditional Sessio
n Judge
3. Court of As
sistant Session
Judge
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25. Thank you
for your attention
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