In this presentation we are discussing about the concepts of law , how it related to legal system and requrements for the manager system.

1. A PROJECT REPORT
ON
‘Legal and Business Environment (Micro and Macro)’ {127}
“Titled”
“Sources of Law, Manager & Legal System”
DR. HARI SINGH GOUR CENTRAL UNIVERSITY
SAGAR (M.P)
(A Central University)
UNDER THE GUIDANCE OF
Dr. Suneet Walia
(Assistant Professor)
SUBMITTED BY
Arvind Saini
(Y19282008)

2. WHAT IS LAW
Is a body of principles recognized and applied by the state in
administration of justice. The law is a system of rules that a
society or government develops in order to deal with crime,
business agreements, and social relationships.
 Law is not static.
 “Ignorance of law is not an excuse”

3. Business Law/Mercantile law
It refers to those legal rules which govern
and regulate business transactions (trade ,
commerce and industry).
It deals with contractual situations and right
and obligations arising out of mercantile
transactions between mercantile persons.
Business laws establish the rules that all
businesses should follow.

4. Sources Of Law
Indian mercantile law is based largely upon the English
mercantile law.
1) English mercantile law
 a) Common law
 b) Equity
 c) Statute law
 d) Case Law
 e) Merchant law
2) Customs and usages
 a) Statute law
 b) Case laws

5. 1. English Mercantile Law
The English law is the most important source of Indian mercantile law. Many
rules of English law have been incorporated into Indian law through statutes
and judicial decisions. The sources of English law are:
A. Common Law
This law is known as judge made law. It is based upon customs and practices
handed down from generation to generation. It is the oldest unwritten law.
The English Courts developed these over centuries.
B. Equity
Equity is also unwritten law. It is based upon concepts of justice developed
by the judges whose decisions become precedents. It grew as a system of
law supplementary to the common law and covered the deficiencies of the
common law. Its rules were applied in cases where the rules of common
law were considered harsh and oppressive.

6. C. Statute Law
Statute law is one, which is laid down in the Acts of Parliament. Hence, it acts
as the most superior and powerful source of law. It overrides any rule of
common law or Equity.
D. Case Law
This is also an important source of the English mercantile law. It is built upon
the decisions of the Judges. It is based on the principle that what has been
decided in earlier case is binding in similar future case also unless that there
is a change in the circumstances of the case.
E. Law Merchant
It is also one of the important sources of English mercantile law. It was that
branch of law which was based on customs and usages prevalent amongst
merchants and traders. It developed during“fourteenth and fifteenth
centuries and was recognized.”

7. 2. Statute Law
The Indian Contract Act, 1872, the Sale of Goods Act, 1930, the Companies
Act, 1956 are some of the examples of the statute law. The law making
power in India is vested in Parliament and the state legislature.
3. Judicial Decisions
Judicial decisions are also called as case laws. This is a source of law based
upon previous judicial decisions which have to be followed in similar future
cases. The Courts in deciding cases involving similar points of law also
follow them.
4. Customs and Usage
Customs and usage plays an important role in regulating business transactions.
Most of the business customs and usage have been already codified and
given legal sanctions in India.
Some of them have been ratified by the decisions of the competent Courts of
law. When a custom is accepted by a court and is incorporated in a judicial
decision, it becomes a legally recognized custom.

8. Scope of Business Law
The scope of mercantile law is very wide and varied. It includes
law relating to contracts, partnership, sale of goods, negotiable
instruments, companies etc.
The Indian Contract 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

9. Legal System
The main source of law in India is the Constitution which, in
turn, gives due recognition to statutes, case law and customary
law consistent with its dispensations. Statutes are enacted by
Parliament, State Legislatures and Union Territory
Legislatures.
There is also a vast body of laws known as subordinate
legislation in the form of rules, regulations as well as by-
laws made by Central and State Governments and local
authorities like Municipal Corporations, Municipalities,
Gram Panchayats and other local bodies.

10. Enactment of Law
 The Indian Parliament is competent to make laws on matters enumerated in
the Union List. State Legislatures are competent to make laws on matters
enumerated in the State List.
 While both the Union and the States have power to legislate on matters
enumerated in the Concurrent List, only Parliament has power to make laws
on matters not included in the State List or the Concurrent List.
 Laws made by Parliament may extend throughout or in any part of the
territory of India and those made by State Legislatures may generally apply
only within the terrirory of the State concerned.
 variations are likely to exist from State to State in provisions of law relating
to matters falling in the State and Concurrent Lists.
Applicability of Law

11. Judiciary
 One of the unique features of the Indian Constitution is that,
notwithstanding the adoption of a federal system and existence
of Central Acts and State Acts in their respective spheres, it has
generally provided for a single integrated system of Courts to
administer both Union and State laws.
 At the apex of the entire judicial system, exists the Supreme
Court of India below which are the High Courts in each State
or group of States. Below the High Courts lies a hierarchy of
Subordinate Courts. Panchayat Courts also function in some
States under various names like Nyaya Panchayat, Panchayat
Adalat, Gram Kachheri, etc

12. Manager System
Business Law for managers are:
 Business managers must have a good understanding of the
fundamental principles of contracts, both general and
special, and try to appreciate their application in different
jurisdictions.
 Managers have to be extra cautious while dealing with
contracts of special nature as they may have certain
peculiar features, very different from general contracts.
 Business managers need to be realistic in borrowing and
using borrowed money. Lavish, unnecessary expenditure
doesn’t help. It sounds clichéd and old-fashioned, but it is
the bitter truth that mostly leads to a financial crunch.