This document provides an introduction to business law. It discusses how human civilization and the development of business led to the need for a uniform code of conduct. It defines law and outlines the main branches of law. It then defines business and business law. The objectives of business law are also presented. Finally, the key sources of business law are summarized, including customs, common law, equity principles, law merchant, statute law, precedents, and Indian statute law.
2. Introduction
Human Race is socialistic in nature
Early Civilizations started in settlements
Man learnt Business to make his/her life comfortable
Need arose for a uniform code of conduct
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3. Meaning
Law is a rulebook, containing a list of
Code/Rules/Procedures, which tells us what should be
done and what should not be done.
Law is a system of rules, usually enforced through a set
of institutions
Law is a force. It consists of rules and regulations to
provide firmness to mutual relations.
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4. Definition
“Law is a body of Principles recognized and applied by
the state in the administration of justice” - Salmond
“Law is a rule of civil conduct, prescribed by the supreme
power of a state, commanding what is right and
prohibiting what is wrong” - Blackstone
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5. Branches
Growth of Civilization led to development in diverse fields
As result a Uniform Code of Conduct did not make sense
Hence,
i. Civil Law
ii. Criminal Law
iii. Constitutional Law
iv. International Law
v. Industrial Law
vi. Mercantile Law (Business law)-Part of Civil Law(India)
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6. Meaning of Business
All those activities which are aimed at transfer of
goods & services from the production centre to
consumption centre carried out by an entrepreneur by
optimally utilizing resources at his command i.e.
money, man, material & machine with a view to
maximize profit.
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7. Meaning of Business Law
Laws relating to business, commercial
activity, trade or commerce.
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8. Objectives of Business Law
Complex Business environment has given rise to the need
for a code of conduct
IGNORANTIA JURIS NON EXCUSAT
---ignorance of Law is no excuse.
Develop an understanding of the legal framework
Understand the purpose and logic of Law-Meaningful
when understood
Preventive Law
The Success of lawyer depend upon the well informed
client
Build a better society
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9. Sources of Business Law (Origin
and Development)
Customs of Trade (History)
English Common Law
Principles of Equity
Law Merchant
British Statute Law
Precedents (Past Judicial Decisions)
Indian Statute Law (Acts of the Indian Legislature)
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10. Customs of Trade (History)
customs and traditions, laid the first foundation to the
Law
which are reasonable in nature to the entire society
and which are time tested
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11. English Common Law
Considering the customs and usages as the raw
material, the judges made up their judgments. These
important contributions of the judges are found in
what is known as English Common Law
Decisions made by judges based on English customs
and traditins
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12. Principles of Equity
law based on principles of justice and good conscience
unwritten law
cases where the common law courts could not give
relief to the aggrieved, the party had to petition to the
king
courts were called courts of equity
relief was granted to the aggrieved on the basis of
justice, good conscience and equity
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13. Law Merchant
Law based on customs and traditions which were
practiced by the traders- not recognized initially but
later made an impact
Initially English Law courts were not aware of the
trades and practices - many times futile in giving
judgments in case of conflicts
As trade grew - traders set up tribunals mostly
consisting of traders to judge the cases
This gave birth to Law Merchants (Lex Mercatoria).
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14. British Statute Law
Law which is based upon Acts passed by the
Legislature (Parliament). It is the Written Law. This
Law is superior and can override the effect of other
laws
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15. Precedents (Past Judicial
Decisions)
Past Decisions or judgments are called precedents
precedents are often referred to when giving decisions
on similar cases
India the Supreme Court is the apex court and its
decisions have a binding effect on all the lower courts
principle is that when a decision is given on one case it
implies that it has a binding effect on cases with
similar circumstances
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16. Indian Statute Law (Acts of the
Indian Legislature)
the Acts passed by the Indian legislature becomes the
basis for many modifications in the Indian Business
Law
Indian Contract Act 1872
The Negotiable Instruments Act 1881
The Sale of Goods Act 1930
The Indian Partnership Act 1932
The Companies Act 1956
Etc…
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17. End of General Introduction
Questions…
Clarifications…
Suggestions…
Email: vikasdongre@gmail.com
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