The letter of the law refers to a strict, literal interpretation and application of written laws,

statutes, or regulations as well as focusing on the exact wording of the law as it is written
without considering the broader context or intent behind it. (Garcia et al., 2014) Respecting
the text of the law entails abiding by its plain wording and applying the law exactly as
intended, regardless of possible outcomes or special situations. On the other hand, the spirit
of the law even emphasises the underlying rules and regulations behind the written law.
(Garcia et al., 2014)

Regarding my perspective, it would be more important to follow the letter of the law
compared to the spirit of the law due to its importance in ensuring a society's stability,
predictability, and fairness. To preserve uniformity and order, the legal system depends on
exact phrasing and rigorous adherence to written statutes, rules, and contracts. Strict
adherence to the letter of the law by persons and entities guarantees consistency in
decision-making and minimises uncertainty. (Syed, n.d.) Accordingly, a foundation for
conducting business is established by clear and unambiguous laws, which helps to build
confidence in the legal system and a sense of security. Since it is more like a written and
recorded, a person may also have the perfect evidence to provide in the court if he
encountered any court related matters.

However, there are circumstances where emphasising the spirit of the law might outweigh
the strict adherence to the letter of the law. For instance, in an environmentally protected
nature reserve area, there is the letter of the law that states zero tolerance for any violation
of emission from factories while the city has its economic operation mainly from the factories
nearby areas. In the viewpoint of the spiritual law, the core purpose is to protect the area and
be environmentally friendly and not to let the area be destroyed. Authorities can collaborate
with local business owners and negotiate some obligations to preserve nature in such cases.

The rule of law significantly impacts businesses by providing a legal framework where
businesses can predict and align their operations depending on the laws. Moreover, the rule
of law also provides businesses with a professional relationship between the people and the
merchants by providing contracts with a written framework. (Lau, T. & Johnson, L., 2011, 18)
Companies depend on the rule of law to uphold agreements and contracts. Legal systems
offer channels for settling conflicts and guaranteeing the fulfilment of contractual duties.

In a land without any rule of law system, the business environment would be significantly
challenging since there might not be any protection and rights regarding the contracts and
properties, lacking agreements. Businesses would be exposed to increased risk because of
uncertain legal consequences and property rights. (Hailu, 2023) Conflicts and disputes
would probably be resolved informally, by coercion, or by force as opposed to following a
just legal procedure.

References

Garcia, S. M., Chen, P., & Gordon, M. T. (2014, September). The letter versus the

spirit of the law: A lay perspective on culpability. Judgment and Decision Making,

9(5), 479-490. doi:10.1017/S1930297500006835

Hailu, G. (2023, June 16). What will happen to our everyday business life if there

was no rule of law? Linkedin. https://www.linkedin.com/pulse/what-happen-our-

everyday-business-life-rule-law-genet-hailu-/

Lau, T. & Johnson, L. (2011). The Legal and Ethical Environment of Business (Vol.

1). Flat World Knowledge.

Syed, R. F. (n.d.). Letter of Law versus Spirit of Law: Child's Custody in Context. The

Daily Star. https://www.thedailystar.net/law-our-rights/news/letter-law-versus-spirit-

law-childs-custody-context-3264921