What is law?

Law is a system of rules a society sets to maintain order and protect harm to persons and
property

Types of Law:

Contract law regulates everything from buying a bus ticket to trading on derivatives markets.

Property law defines rights and obligations related to the transfer and title of personal (often referred to
as chattel) and real property.

Trust law applies to assets held for investment and financial security, while tort law allows claims for
compensation if a person's rights or property are harmed. If the harm is criminalized in a statute, criminal
law offers means by which the state can prosecute the perpetrator.

Constitutional law provides a framework for the creation of law, the protection of human rights and the
election of political representatives.

Administrative law is used to review the decisions of government agencies, while international law
governs affairs between sovereign nation states in activities ranging from trade to environmental
regulation or military action. Writing in 350 BC, the Greek philosopher Aristotle declared, "The rule of
law is better than the rule of any individual.

Sources of Bangladesh commercial law

Statute of the Bangladesh legislatures

English mercantile law

Judicial Decisions or precedents

Custom & Usage

Limitations / Obstacles of law enforcement

These are some of the obstacles and limitations in implementing the rule of law:

The procedure to get justice is a lengthy process. "Justice delayed justice denied."

Many crime/violation of rule is overlooked for socio-political reason.

Involvement of influential person.

Lack of confidence on law enforcement authorities.

Witness of crime denies assisting for keeping him/her away from a hassle.

Weak information report by Police.

Corruption

What Is Business Environment?

Meaning: - The term Business Environment is composed of two words Business and
Environment.

The word Business is human activities like production, extraction (remove) or purchase or sales
of goods that are performed for earning profits.

On the other hand, the word Environment is something we are very familiar with. It's
everything that makes up our surroundings and affects our ability to live on the earth

The air we breathe

The water that covers most of the earth's surface,

The plants and animals around us, and much more.

Therefore, Business Environment may be defined as a set of conditions (surroundings)

Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects
the functioning of organization.

Characteristics:-

1. Business environment is compound (complex) in nature.

2. Business environment is constantly changing process.

3. Business environment is different for different business units.

4. It has both long term and short term impact.

5. Unlimited influence of external environment factors.

6. It is very uncertain.

7. Inter-related components.

8. It includes both internal and external environment.

Business Environment has two components:

1. Internal Environment
2. External Environment
Internal Environment: It includes 5 Ms i.e.

Man (b) material (c) money, (d) machinery and (e) management, usually those 5 Ms i.e. Within
the control of business. Business can make changes in these factors according to the change in
the functioning of enterprise.

External Environment: Those factors which are beyond the control of business enterprise are
included in external environment.

What is The Legal Environment of Business?

The basic legal environment of business is governed by state, country and international laws.

This includes laws on:

What can or cannot be produced or sold

Consumer and employee protection laws
Tax and other financial laws
Many rules and regulations with regards to business ethics, when and how to seek legal
advice in case of disputes, etc.

The minimum Bangladeshi business laws need to be studied to understand Bangladeshi

Legal Environment of Business is given below.

The Companies Act 1994

The Bangladesh Labour Act 2006

The Banking Companies Act 1991 (and the Bank Deposit Insurance Act 2000)

The Contract Act 1872

The Partnership Act 1932

The Sale of Goods Act 1930

The Securities and Exchange Ordinance 1969 [SEO], and SE Rules 1987

The Securities and Exchange Commission Act 1993

The Money Loan Courts Act 2003

The Bankruptcy Act 1997

The Negotiable Instruments Act 1881

The Prevention of Money Laundering Act 2009

The Foreign Exchange Regulation Act 1947 (as amended in 2003).

The Arbitration (negotiation) Act 2001

** What is Contract law?

The word contract is derived from the Latin word Contractum which means drawn together.
To the layman, the word contract probably means an agreement which can be enforced in the
court of law. Section 2 (h) of the Indian Contract Act defines the term contract as follows: An
agreement which is enforceable at law is contract.

Example: Basil invites Hari to dinner and Hari accepts the invitation. It is only a social
agreement and not enforceable in a court of law. So it is not a contract. Basil agrees to sell his
house to Hari for Rs 50,000. This is a contract..

** Elements of a contract

The essential elements of a contract are contained in the definition of contract given in section 10
of contract Act

Agreement: Agreement - There must be an agreement between the parties of a contract. An

agreement involves a valid offer by one party and a valid acceptance by the other party.

Ex: Sanitha sends a proposal to Julie to purchase her house for Rs 5 Lakhs and Julie accepts
the proposal, then these results into an agreement.

Consensus of Idem: The parties to contract must agree upon the subject matter of the contract in
the same manner and in the same sense. EX: Adarsh has two houses, one at Trivandrum
and another at Kochi. Adarsh expresses his willingness to sell one of his houses to Shanu.
Adarsh had in his mind house at Trivandrum where Shanu had house at Kochi in mind. So there
is no Consensus Ad Idem.

Capacity of parties: Capacity of parties There must be at least two parties to every contract.
These parties must have legal capacity to enter into a contract. Every person who is a major and
possesses sound mind is competent to enter into a contract. (Minors, lunatics, drunken persons
not competent).

Free consent For the formation of a contract, one person must give his consent to another
person. The consent thus obtained must be a free consent. Consent is said to be free if it is not
caused by coercion, undue influence, fraud, misrepresentation or mistake. Ex: Arun asks
Ajas to sign an agreement. Ajas refuses to do it. So Arun threaten Ajas of severe consequences if
Ajas is not signing the document. So Ajas finally agrees, fearing consequences. The consent thus
shown by Ajas is not free.

Consideration.

Lawful Object.

Not declared to be void.

Certainty and possibility of performance.

An intention to create legal relationship.

What is Contract for sale of goods?

A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer
the property in goods to the buyer for a price.
Clause:4-1
(2) A contract of sale may be absolute (The way it is) or conditional, Clause: 4-2
Example: Karim has a horse. Karim hands over the horse to Rahim for the amount of
20,000Tk or karim agrees to hand over the horse to rahim within three (3) days. For both
party this is an example of Contract for sale of goods
Why it is important?
Because all sales involve a "contract" of one kind or another, either written or un-written
(verbal).
A contract assures that both parties to the transaction are protected and understand what
the ground rules of the transaction are.
Sale and Agreement of Sale: Where under a contract of sale the property in the goods
is transferred from the seller to the buyer, the contract is called a sale, but where the
transfer of the property in the goods is to take place at a future time or subject to some
condition thereafter to be fulfilled, the contract is called in agreement to sell. Clause: 4-
3
Also
An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled
subject to which the property in the goods is to be transferred. Clause: 4-4
Example: Karim sells 50 kg of rice to Rahim for an amount. Or Karim accepts money
from Rahim and promises that Karim will send Rahim 50 kg of rice within three (3) days.
Those Two (2) examples are the example of Sale and Agreement of Sale.

Offer and acceptance: A contract of sale is made by an offer to buy or sell goods for a
price and the acceptance of such offer. The contract may provide for the immediate
delivery of the goods or immediate payment of the price or both, or for the delivery or
payment by installments, or that the delivery or payment or both shall be
postponed. Clause: 5-1
Method of Contract: Subject to the provisions(law) of any law for the time being in
force a contract of sale may be made in writing or by word of mouth, or partly in writing
and party by word of mouth or may be implied from the conduct of the parties. Clause:
5-2

Goods perishing before sale but after agreement to sell: Where there is an agreement to sell
specific goods, and subsequently the goods without any fault on the part of the seller or buyer
perish or become so damaged as no longer to answer to their description in the agreement before
the risk passes to the buyer, the agreement is thereby avoided. Clause: 8

What is Condition?
A condition is a stipulation (conditions) essential to the main purpose of the contract the breach
(break) of which gives to right to treat the contract as repudiated (Reject).Clause: 12-2

Example: Karim wants to buy some furniture. He goes to a furniture shop and says to the
furniture shop owner that Karim will only purchase furnitures from him if only the seller
provides Karim Furnitures made of Segun Wood. In this case the Segun Wood is the
Condition in case of purchasing furniture from the seller.

What is warranty?

A warranty is a stipulation collateral to the main purpose of the contract, the breach of which
gives rise to claim for damages but not to a right to reject the goods and treat the contract as
repudiated. Clause: 12-3

Example: Karim wants to buy some furniture. He goes to a furniture shop and says to the
furniture shop owner that Karim will only purchase furnitures from him if only the seller
provides Karim Furnitures made of Good Wood.

When condition to be treated as warranty:

Voluntary Waiver (1) Where a contract of sale is subject to any condition to be fulfilled by the
seller, the buyer may waive (surrender) the condition or elect to treat the breach of the condition
as a breach of warranty and not as a ground for treating the contract as repudiated. Clause: 13-1

1. The Negotiable Instruments Act 1881

2. Negotiable Instrument According to Section 13(i) a negotiable instrument means a promissory note,
bill of exchange or cheque payable either on order or to bearer. An instrument may be negotiable either
by1. Statute: Promissory Notes, bills of exchange and cheques are negotiable instruments under
Negotiable Instruments Act 1881 .2. By Usage: Bank Notes, Bank Drafts, scripts, treasury Bills etc

4. Methods of Negotiation1. Negotiation by delivery 2. Negotiation by endorsement & delivery 3.

Property is transferred to the endorsee4. Endorsee gets right to negotiate the instrument, sue on instrument

5. Characteristics It is freely transferable Better title Right to sue A negotiable instrument can be
transferred any number of times till its maturity A negotiable instrument is subject to certain
presumptions Presumptions certain presumptions as to consideration, reasonable time etc., apply to all
negotiable instruments.

Cheques Section 6, defines it as A cheque is a bill of exchange drawn on a specified banker & not
expressed to be payable otherwise than on demand. It is always drawn on a bank It is payable to bearer
on demand Parties To Cheque:1. Drawer who makes the cheque 2. Payee to whom payment is to be
made3. Drawee Bank.