Introduction of Subject

8/4/2019 Introduction of Subject

1/6

BUSINESS LAW By: Mr.S.Y.SHAH

Page 1

INTRODUCTION OF SUBJECT :

What is Law?Law is a system of rules that has been sets to maintain order and protect harm to

persons and property. Today, most countries have tens or hundreds of thousands of pages oflaw. Laws are enforced by the police and supported by the court. Laws are written by

legislators, such as senators or congressmen. In most of the countries, laws must uphold and

not contradict the Constitution, a document outlining the most basic rules of the country.

Law being a set of rules for citizen , the word also refers to the law as practiced by

lawyers,. Becoming a lawyer requires attending law school and passing a bar exam. This entitles

the lawyer to a law license. Only lawyers with a law license are allowed to practice law.

What are the sources of Indian law?

Indian law consists of-

a) Legislations (called statutes ) passed by the Parliament (Lok Sabha and Rajya Sabha) and

State Legislatures (Vidhana Sabhas and the Vidhana Parishat, if any); and

b) Rules, regulations, byelaws, notifications etc. made under different Acts; and

c) Supreme Court decisions in various cases; and

d) In certain circumstances, the customs followed by particular groups.

There are many categories of law. These include

PROPERTY LAW, CIVIL LAW TRUST LAW, TORT LAW, CRIMINAL LAW, CONSTITUTIONAL LAW, BUSINESS LAW,(MERCANTILE LAW) INDUSTRIAL LAW AND

INTERNATIONAL LAW.

Each of these sets the rules for a distinct area of human activity. Without laws, there is

lawlessness, which historically has led to a general breakdown in society.
http://www.wisegeek.com/what-is-the-bar-exam.htmhttp://www.wisegeek.com/what-is-tort-law.htmhttp://www.wisegeek.com/what-is-criminal-law.htmhttp://www.wisegeek.com/what-is-constitutional-law.htmhttp://www.wisegeek.com/what-is-international-law.htmhttp://www.wisegeek.com/what-is-international-law.htmhttp://www.wisegeek.com/what-is-constitutional-law.htmhttp://www.wisegeek.com/what-is-criminal-law.htmhttp://www.wisegeek.com/what-is-tort-law.htmhttp://www.wisegeek.com/what-is-the-bar-exam.htm


2/6


Page 2

Why knowledge of law is important for manager?

Managers and professionals in business make decisions of a legal nature every day, yet

they do not always understand or have access to current knowledge in Business Law. They are

constantly required to enter into formal and informal agreements and transactions in a widerange of business situations. These agreements and transactions can have legal implications,

not only for their organization but also for themselves. Indeed, there is an increasing trend in

the law to make managers personally liable for breaches of the law by their organization.

Responsible managers therefore need to be aware of the importance of minimizing legal

risk. This benefits not only their organization but also the manager by reducing their exposure

to penalties and fines under the law. Managers who recognize that managing legal risk should

be a normal and important part of their approach to their management duties need also to

improve their knowledge by keeping up with changes to Business Law.

The knowledge of different business laws is very significant for the survival and growthof any organization. It gives confidence clarity and quality in decision-making. It also provide

exposure to business ethics and social responsibilities with special requirements.

What does the term 'Mercantile Law' mean and include?The term "Mercantile Law" is misleading. The term "Mercantile Law" is deals with the

rights and obligations arising out of mercantile transactions between mercantile persons. It is

also used to denote collection of those legal rules which are connected with matters relating to

industry, trade and commerce.

"Mercantile Law" or "Commercial Law" or "Business Laws" may therefore, be defined as

that part of law which regulates the transactions of the business community. According to therules of the Calcutta High Court, "commercial suits include suits arising out of the ordinary

transactions of merchants, bankers and traders; amongst others, those relating to the

construction of mercantile documents, export and import of merchandise, carriage of goods by

land, insurance, banking, mercantile agency and mercantile usage and debts arising out of such

transactions".

The scope and extent of "mercantile law" is thus wide and varied. It includes the laws

relating to contract, partnership, sale of goods, negotiable instruments, companies, etc. It must

be noted however, that even though the aforesaid acts are part of "Mercantile Law" or

"Business Law" they are equally applicable to others who are not traders.

What are the sources of Mercantile Law?Mercantile Law in India is largely based upon statute of the Indian Legislature, English

Mercantile Law and custom and also upon the established mercantile usage in India, modified

and adopted by judicial decisions.

(1) Laws in India:Bulk of the Indian Mercantile Law is statutory, viz. Indian Contract Act, of 1872,


3/6


Page 3

Partnership Act of 1932, Sale of Goods Act, 1930, Companies Act, 1956, Negotiable Instrument

Act, 1887 etc.

It may be noted that....

most of these Indian statutes are largely based upon the corresponding English statutes,(2) English Mercantile Law:

As stated above, majority of the rules found in English Mercantile Law are either

expressly incorporated into Indian Laws through statutes or sought to be included through

judicial decisions. English Mercantile Law in its turn is primarily based on the Common Law of

England as modified and supplemented by Equity and Statute Law.

(3) Judicial Decisions:Judicial Committee of the Privy Council of Great Britain upto 1947 was and the Supreme

Court of India after 1947 is, the final Court of Appeal for suits arising in India and their decisions

were binding on all Indian Courts. It is based on a sound principle of law that what has been

decided in an earlier case should be binding to all similar future cases.

(4) Customs and Usages:Customs and Usages have played a very vital role in regulating commercial dealings and

transactions. Growth of a customs is the result of continuously accepted practice. A custom, in

order to be binding on the parties, must be ancient, reasonable, certain, definite, consistent

with other customs and uniformly recognized in the ordinary course of business.

Syllabus For PGPM

1. Indian Contract Act Nature of contract essential elements of a contract kind of contract

Offer and acceptance Consideration Capacity of parties Free consent Performance of contract Breach of contract and remedies

2.Sale of Goods Act, 1930 Formation of a contract Condition and warranties Transfer of ownership

Performance of the contract Rights of unpaid seller3. The Companies Act, 1956

Nature and types of company Formation of a company Memorandum of association Articles of association Prospects and allotment of shares


4/6


Page 4

Share and share capital Meetings and proceedings

4.The Consumer Protection Act (Outlines only)

5.The information tech. act,2000 (Outlines only)

6. Negotiable instrument act

RECOMMENDED BOOKS

1 Business Laws by N.D. Kapoor Sultan Chand and sons, New Delhi

2Business Law for Managers by S.K .Tuteja; Sultan Chand and Sons, New DelhiASSIGNMENTS

kinds of contract Sale and agreements to sell a comparison Condition of warranties Type Of Companies Memorandum and articles of association Share capital (classification)


5/6


Page 5


6/6


Page 6

Introduction of Subject

Documents

Transcript of Introduction of Subject