Introduction to

Business Law
Unit 1
 Latin term- juris prudential- study, knowledge or science of law-Philosophy of
law.
► The word jurisprudence derives from the Latin term juris prudentia,
which means "the study, knowledge, or science of law."
► In the United States jurisprudence commonly means the philosophy
of law.

BUSINESS
Jurisprudence ➢Field of commerce where supply of goods & services are given to customers
➢A profit seeking activity
➢A framework of laws & regulations are involved
➢A unique institution which converts ideas into saleable products

LAW
➢Principles & regulations established by Government & applicable to people
➢They are in the forms of Legislation or policies recognized by judicial system
(administration of Justice)
➢Rule of action applied indiscriminately to all
➢Failure to comply will lead to penalty or coercion
 ➢It is that branch of legal system which regulates business activities
➢Establishes set of rules & prescribes conduct that enables one to
avoid misunderstandings & injury in business relationships.

“ Business Law is that portion of the legal system which

guarantees an orderly conduct of business affairs and the
Business Law settlement of legitimate disputes in a just manner”

➢Business Law is also called commercial or mercantile law

➢English law is otherwise called as common law
 Licenses Monopolies Contracts

Houses
Import of goods

Pollution Control
securities bankruptcy

Scope of sales
Property
Labor
Business Law Partnerships

Insurance
Guarantees
Custom
Allotment of materials Clearance
Business crimes
Consumer interest
 ❑ Dharmasatras – Hindu Laws covering areas of civil rights, duties,
wrongs & criminal laws
❑Arthasastras – First to cover contract act, debts, deposits,
pledges, master – servants etc.
❑East India Company – British set up the company in 1600
❑British Government took over from EIC in 1858
Origin of ❑ Indian High Court Act was passed in 1861
Business Law ❑Government of India Act of 1919
❑Government of India Act of 1935 – Concept of Federation
❑Federal court was established in 1935
❑Indian Independence Act
 1. Written
2. Unwritten
3. National
4. International
5. Public
6. Private
7. Substantiative
Classification 8. Procedural
9. Criminal
of Law 10. Civil
11. Act
12. Ordinances
13. Rules
14. Regulations
15. Natural
16. Case
 1. Written : - These are rules of law those have been
reduced into a written form
- They are embodied in a formal document e.g:
Constitution
- Written Laws prevail over unwritten laws

Classification
2. Unwritten :- These are rules of law that have not been
of Law reduced to a written form
- They are not embodied in a document eg:
Common law, unity
- Their existence must be proved
 3. National :- These are rules of law operational within the
boundaries of the country
- Regulates relation between citizens
- Regulates relation between citizens & state
- Based on act of parliament, customary &
religious practice of the people
Classification
of Law 4. International :- It is a body of rules that regulates relations
between countries/states & others
- It is based on international agreements of
treaties & customary practice of states & general
principles
 5. Public :- Branch of law where the state has an interest as the
sovereign Eg: Criminal Law, Constitutional Law,
Administrative Law. The branch of law where the state
has an interest as the Sovereign.
- Public Law is concerned with the constitutions &
functions of government including local authorities,
Classification their relations with each other & citizens
of Law 5. Private :- Branch of law where state has no direct interest as
sovereign. Eg: Laws of contracts, Law of property,
Law of succession
- It is concerned with day to day transaction of legal
relationships between people
 7. Substantiative : - sets, defines and creates legal relationships, set
of laws that governs how members of a society are to behave.
- Create rights & duties of people
- Concerned with rules as opposed to the
procedure of how to apply them
- Provides remedies when the rights are
violated
Classification
8. Procedural : -Set of procedures for making, administering, and
of Law enforcing substantive law
- Consists of steps, guiding principles, rules,
practices to be complied with in the application of
substantial law
- Referred as Adjective Law
Eg: Indian Evidence Act, 1872
 9. Criminal : - Defined as law of crimes
- A crime is defined as an act or omission committed
or in violation of public law eg: Murder, Robbery
- Suspects are arrested by the state through police
- Offences are prosecuted by the state by the office
of Attorney General
10. Civil :- It is concerned with violation of private rights in
corporate capacity or between individuals eg:
Classification breach of contract, negligence, defamation,
trespassing
of Law - If a persons private rights are violated the person
has a cause of action. The cause of action are
recognized by common law
-The person whose rights are violated sues the
person who is the wrong doer. Hence the civil cases
are styled as plaintiff vs defendant
-The burden of proof is on the plaintiff
-Purpose of civil law is protection of rights,
enforcement of duties, provision of legal remedies
 11. Act : - Refers to a thing done, deed, offence, civil wrong
including a series of acts, illegal emission
- According to criminal procedure code act means
and includes the power to examine and cross
examine witnesses and address the court

Classification 12. Ordinance: - Is an authoritative order.

- Is a decree or law promulgated by a state or
of Law national government without the consent of the
legislature
- Constitution of India grants the President certain
law-making powers to promulgate ordinances to
deal with situations where an emergency in the
country necessitated urgent action.”
 13. Rules : Rule is made to exercise power conferred by any
enactment
14. Regulations : Regulations are made by federal government
under GOI Act
15. Natural: Rights inherent to human beings by nature, not bound
by the societal rules and customs.
Classification 16. Case: Based on the previous judgments passed under various
circumstances over the years by different judges
of Law
 Supreme Court

High Court

District Court

Civil Court Criminal Court Revenue Court

Hierarchy of
courts District Court Sessions Court Board of Revenue

Commissioner
Sub Court
Judicial Magistrate Collector
(First Class)
Principle Junior
Tehsildar
Civil Court

Judicial Magistrate
Munsif Court (Second Class Asst. Tehsildar
 Natural
Custom Dharma
Law

English
Legislation Case Law
Law

Source of
Business Law
Business Law