Sources of LawLegal Environment of Business

Prepared By

Manu Melwin Joy

Assistant ProfessorIlahia School of Management Studies

Kerala, India.

Phone – 9744551114Mail – manu_melwinjoy@yahoo.com

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Sources of Law

English Law Judicial Decisions

Customs and usage

Indian Statute

English common Law

Equity Law Merchant Statute law

English Law

• Indian business law ismodeled on the lines ofEnglish Mercantile Law, asIndia was under British rulebefore its independence.

• The difference in the lawsof India and England areprimarily on account oftheir different businessenvironment, customs andtrade practices.

English Law

• The sources of businesslaw in India are generallythe English laws whichhave roots in thefollowing.– English common law.

– Equity.

– Law Merchant.

– Statute Law.

English Common Law

• It refers to a system of lawbased upon Englishcustoms, usages andtraditions which weredeveloped over centuriesby the English courts.

• It is unwritten or the non –statutory laws. These arefound in the reporteddecisions of the court oflaw.

Equity

• It refers to that branch ofthe English Law whichdeveloped separatelyfrom the common law.

• It is based on principle offairness and concepts ofjustice developed by thejudges whose decisionsbecame precedents.

Law Merchants

• It refers to the usages orcustoms of merchants andtraders that have been ratifiedby the courts of law.

• The object is to protect theinterest of trade. The courts inthese cases assume that theparties have dealt with eachother on the footing ofcustoms or usages prevailinggenerally.

Statute Law• The statute law refers to

the law laid down in theActs of the parliament.

• It is superior to andoverrides any rules of thecommon law, equity or lawmerchant.

• The court of law interpretsthe meaning of suchenactments and applythem.

Judicial Decisions

Judicial decisions areusually referred to asprecedent and arebinding on all courtshaving jurisdiction lowerto that of the courtwhich gave thejudgment. This is alsocalled judge made laws.

Customs and Usages

• Customs or usage of aparticular trade also guidethe courts in decidingdisputes arising out ofmercantile transactions.

• Such a custom or usagemust be widely known,certain and reasonable,and must not be opposedto any legislativeenactment.

Customs and Usages

But where a statutespecifically provides thatthe rule of law containedtherein are subject toany well – recognizedcustom or usages oftrade, the latter mayover – ride the statutelaw.

Indian Statute

The constitution of Indiaconfer power to enactlaw on its parliament andlegislatures of stateswhen a bill is passed bythe parliament / statelegislatures and assentedto the president orgovernor of a state. Itbecomes an act orstatute.

Indian Statute

The bulk of IndianMercantile Law is statutelaw. The Indian contractact, 1872, The companyAct, 1955, TheNegotiable InstrumentsAct, 1881 are instancesof the statute law.

Discussion

• Identify 10 reasons why human trafficking is thriving?

• Suggest 10 ways by which human trafficking can be stopped?

• Formulate 10 laws that has to be enforced to curb human trafficking?

• Sources of law.