A universal human need. Rules and Regulations are required to provide firmness in our Mutual relationships. Rule of law is the essence of civilized society. It provides certainty to our relationships. Establish rights and duties of individuals. control concentration of power. Why Law?

Law and business are closely related. They complement each other. Most business aspects are regulated by law. Why Law in Business ? Why Law in Business ? Installation of business itself involve legal provisions Installation of business itself involve legal provisions Contracts entered into by the Company Contracts entered into by the Company Decision making process in business Decision making process in business Settlement of disputes between different parties. Settlement of disputes between different parties.

What is Law ? Body of rulesBody of rules whether proceeding from formal enactment or from custom,whether proceeding from formal enactment or from custom, which a particular state or community recognizes as binding on its subjects or members.which a particular state or community recognizes as binding on its subjects or members. Another definition:Another definition: Rule of conduct of persons Rule of conduct of persons imposed upon and enforced imposed upon and enforced among the members of a given state. among the members of a given state.

Sources of Law Customs.Customs. Judicial precedents.Judicial precedents. Statute.Statute. Personal Laws.Personal Laws. English law.English law. The Law merchantThe Law merchant

A body of Rules. Not static. It is for the guidance and conduct of persons. It is imposed. It is enforced by the executive presupposes a state maintain some form of social order in a group. compel group members to be within that order Serve social political or economic purpose. Characteristics of Law

Public law determines and regulates the the organization and functioning of states. It also regulates the relation between the state and its subjects. It includes Constitutional Law, Administrative Law, Criminal law, Municipal Law, International Law Private Law regulates the relations of citizens with one another as of that of public importance Primarily concerned with the rights and duties of individuals with each other It includes Law of contract, Law of Tort, Law of Property, Family Laws etc. Public Law and Private Law

CRIMINAL LAW AND CIVIL LAW CRIMINAL LAW 1.Part of Public Law 2.Crime - against State. 3.Concerned with wrong doings against individuals or public at large. 4.Some govt. Agencies or officials initiate action. 5.Attracts legal punishment by way of imprisonment or fine. 6.Objective is to award punishment for the unlawful act committed by the defendant. 7.Injured individual can also enforce criminal law by initiating criminal proceedings. 8.The injured individual will not get compensated. CIVIL LAW 1.Part of Private law. 2.Civil wrong – against individuals. 3.Concerned with the rights and duties of individuals against each other. 4.The plaintiff institutes civil suit against the defendant. 5.No punishment, but compensation or damages. 6.Objective is to restore the injured party to the position he occupied prior to the defendants wrongful act. 7.Even when criminal case is pending, civil action is possible under civil laws for the same wrong. 8.The injured individual gets compensated.

Ignorance of Law An important legal maxim:An important legal maxim: Ignorantia juris non excusatIgnorantia juris non excusat Meaning:Meaning: ignorance of law is not an excuse.ignorance of law is not an excuse.

The Rule of Law The essential characteristics: The supremacy of Law: all persons are subject to law.The supremacy of Law: all persons are subject to law. equality before the law.equality before the law. The doctrine of judicial precedent.The doctrine of judicial precedent. Restrictions on use of discretionary power.Restrictions on use of discretionary power. concept of justice emphasising interpersonal adjudicationconcept of justice emphasising interpersonal adjudication Prospective operation of legislation.Prospective operation of legislation. Independent judiciaryIndependent judiciary The exercise of legislative power by the Parliament and restrictions on exercise of legislative power by the executive.The exercise of legislative power by the Parliament and restrictions on exercise of legislative power by the executive. An underlying moral basis for all law.An underlying moral basis for all law.

BASIC LEGAL CONCEPTS Concept of Legal entity. Natural or artificial person – intangible, invisible. Natural or artificial person – intangible, invisible. Artificial person has one corpus or body under law. Artificial person has one corpus or body under law. Concept of Property Rights over property occurs when there is some law to define such property. Rights over property occurs when there is some law to define such property. Concept of ownership A bundle of rights in rem – against the whole world. A bundle of rights in rem – against the whole world. unspecified duration and use, inheritable and transferable. unspecified duration and use, inheritable and transferable. Ownership cannot exist without law. Ownership cannot exist without law.

That branch of Law which prescribes a set of rules For the governance of certain transactions and relations between :- Business and business Business and business Business and customers. Business and customers. Business and government. Business and government. Business Law

Regulation of restrictive and unfair business practices Foreign Exchange – conservation and management Insolvency of business persons. Conciliation and arbitration for settlement of disputes. Regulation of companies, partnerships, insurance. Negotiable Instruments. Patents, trade Marks and copyrights. Actionable claims, Factoring and forfaiting. Import and Export regulation. Contracts, Sale Of goods, guarantees, indemnity, bailment, pledge, charge, mortgage, carriage of goods Prevention of food adulteration, regulation of essential commodities. Stock exchange and financial securities Regulations and development of industries Economic offences. Excise, import and export duties, taxes etc. Transactions and relations

1. Law lays down the framework within which business activities shall be carried out. 2. In case of violation legal rights, business person can approach Judicial and quasi judicial authorities. 3. Some laws are made for the smooth running of business. 4. Busies law has social objectives also. 5. Prevent concentration of economic power. ObjectivesObjectives

1. Statutes like Indian Contract Act, Sale of goods Act, Negotiable Instruments Act etc.. 2. English common Law- Indian courts refer to decisins of English courts when Indian Law is silent on certain matters and also for interpretation of Indian Laws. 3. Customs and trade usages. 4. Judicial precedents. 5. Justice, equity and good conscience – principles of equity laid down by English equity courts. Sources of Business Law in India