Business Law (Introduction)

Sabbir Mahamud Chowdhury

Joint District and Sessions Judge
 Session outline
• Introduction
• Definition and Nature of Law
• Society and Law
• Rule of Law
• Nature of Business Laws
• Sources of Business Laws

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and Sessions Judge.
 What is law?

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and Sessions Judge.
Cont…

• Law may be defined as the body of principles

recognized and applied by the state in the
administration of justice.
- Salmond
• Law is the aggregate of rules set by men as
politically superior, or sovereign, to men as
politically subject.
-Austin
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and Sessions Judge.
Cont…

• Law is that portion of the established habit and

thought of mankind which has gained distinct and
formal recognition in the shape of uniform rules
backed by the authority and power of the
Government.
- Woodrow Wilson
• Rules made by authority for the proper regulation of
a community, society or for correct conduct in life.
-Oxford English Dictionary

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and Sessions Judge.
 Three elements of law
• It is a type of Command
• It is laid down by the sovereign (Duty)
• It is enforceable by Sanction

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and Sessions Judge.
 Law: according to the Constitution of
Bangladesh
Article 152(1) of the constitution of People’s
Republic of Bangladesh-
“law” means any Act, Ordinance, order, rule,
regulation, by-law, notification or other legal
instrument and any custom or usage having the
force of law in Bangladesh.

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and Sessions Judge.
 In Brief….
Rule made by authority for the regulation of a
community or society or for correct conduct in
life.

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and Sessions Judge.
 Sources of Law
• Constitution
• Legislation- Act, Order, Ordinance, rules, by
rules etc.
• Precedent
-Ratio Decidendi
-Obiter Dictum
• Custom

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and Sessions Judge.
 Kinds of law
• Natural or moral law or divine law or natural justice
• Conventional law
• Technical law
• International law
• Customary law
• Constitutional law
• Civil law
• Criminal law
• Equity
• Administrative law
• Business law
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and Sessions Judge.
 What is Business law or Mercantile law?
Mercantile law is the branch of law which comprises laws concerning trade,
Industry and commerce.
Business law includes-
Laws relating to-
Contract
Sale of goods
Partnership
Companies
Negotiable Instruments
Insolvency
Carriage of goods
Arbitration
Insurance
Labor law etc.

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and Sessions Judge.
 Growth of Mercantile or Business Law
• Prior to the enactments of the various Acts constituting
Mercantile Law, business transactions were regulated by the
personal laws of the parties to the suit.
• Where both parties were Hindus- Hindu law was applied
• Where both parties were Muslims- Muslim law was applied
• Where one of party was a Hindu and the other party was a
Muslim, The law of the Defendant was applied.
• In cases of persons other than Hindu and Muslim, and also
where laws and usages were silent- English law was applied.
• Then, Indian Contract act, 1872, The Negotiable Instruments
Act, 1881 etc. were enacted for the uniformity of laws
relating to business.
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and Sessions Judge.
 Sources of Business law
1.English Mercantile Law: Foundation, Principles and ambiguity.
2. The Statute Law: Acts
3. Judicial Decisions or Case Law: Precedents, Justice, equity and Good
Conscience
4. International Instruments: Treaty etc.
5. Laws of International Organization related to business and commerce.
4. Customs and Usages:
Widely known
certain
reasonable
Must not oppose to prevailing laws.

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and Sessions Judge.
 Some important Business laws in
Bangladesh
• The Contract Act, 1872
• The Negotiable Instrument, Act 1881
• The Sale of Goods Act, 1930
• The Partnership Act, 1932
• The Companies Act, 1995

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and Sessions Judge.
 Thanks

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and Sessions Judge.