Introduction and sources of business law

ntroduction and sources of business law

1. Introduction to Business
Law

2. •Business law consists of all laws that dictate
how to form and run a business.
•Business law includes state law and federal
laws.

3. •When a person 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 people need 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 law includes all of the laws that
govern how to start,buy,manage and close or
sell any type of business.

6. Meaning of business law
•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 guaranteesan orderly conduct of
business affairs and settlement of legitimate
dispute in a just manner

7. Definition of business law
•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 refers to 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 these rules,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 require a 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 Business Law
•Indian mercantile law is based largely upon
the English mercantile law

13. •1)English mercantile law
Common law
Equity
Statute law
Case Law
Merchant law

14. •2) Customs and usages
•3) Natural law
•4) Constitution laws

15. English law
•Most of the Indian Business laws are based on
English law
•Many rules of English law have been
incorporated into Indian law.
Eg:IndianPenal Codeformulated by the British
,forms the backbone of criminal lawin India.

16. The sources of English 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 statute is 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 years ago court was divided into court
of lawand 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 is also 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
•It is 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
•It is 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
•No man 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
•Constitution is the fundamental law of the
nation.
•Central and state laws should be within the
limitation of Indian constitution law.

25. 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.

26. •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