LEGAL ENVIRONMENT OF BUSINESS

LEGAL ENVIRONMENT OF BUSINESSWhat is Law?A system of rules and guidelines which are enforced through social institutions to govern behavior.Made by governments, specifically by their legislatures. The formation of laws themselves may be influenced by a constitution (written or unwritten) and the rights encoded therein.Shapes politics, economics & society in countless ways and serves as a social mediator of relations between people.Functions of LawSocial harmonizing function.Conflict resolution function.Resource allocation function.Sources of LawFORMAL SOURCEThose sources from which the law derives its force & validity- Salmond.Will of the State, as manifested in statutes, or decisions of Court.

MATERIAL SOURCESThose sources from which the matter of law takes its shape- Salmond.

Historical Material SourcesUnauthoritative sources, lacking formal recognition by the law.Operate indirectly & moderately. Influence the course of legal development.Legal Material SourcesSources which are recognized as such by the law itself.Authoritative & are allowed by the Courts.Types:Reasonable immemorial customs.Judicial decisions.Acts of the Legislature.Equity.Conventions- agreements & treaties.Sources of Law in IndiaAccording to original Hindu law:The SruitiThe SmritiesThe conduct of the virturesOnes own conscience2. According to Mohemmedan law:QuranSunnat & AhadisIjmaQiyasInterpretation of LawThe art or process of determining the intended meaning of a written document, such as a constitution, statute, contract, deed, or will.Fundamental to the process &Practice of Law.Types:1.Literal interpretation (grammatical)2. Functional interpretation (logical)