What are the different roles that a

What are the different

man would play in a society?
roles that a man would
What guides him in his behaviour?
play in a society?
 What is Law?

• Commanding
• Influential/Enforced
• Binding force
• Judicial remedy
• Guide to human
conduct
• Imposed by Authority
 Is Law
Necessary?
 Object of Law

Uniformity – Equity and Equality

Welfare of society and human being
 Need for Law

• Guidance
• Avoidance of Conflict
• Creates powers and responsibilities
• Maintains Peace and security
• Regulates internal activities
 What are the different
Is there a necessity for a business man to learn
about laws?
roles that a man would
play in a society?
 Business and Politics –
Business and Which?
Which drives politics
–
which drives which?
Chapter 1: Introduction to
Business Law
Commercial law / Business law /
Mercantile law
Scope of Commercial Law

Law of Contract

Law of sale of goods

Economic and other legislation

 Sources of Business Law

English Mercantile law

• Law of Merchants or Lex Mercatoria – English merchants from 14th – 15th century
• Common Law – Judicial precedent, customs and traditions, oldest unwritten law,
valid even today
• Equity – Another unwritten law, supplementary to common law, conceptual and spirit
of law
• Statute Law – English enacted law
 Sources of Business Law

Statutes of Indian Legislation

English mercantile laws are embodied in the Indian parliament and constitutes the bulk
of Indian commercial law

• Indian Contract Act 1872

• The Negotiable Instrument Act 1881
• The Sale of Goods Act 1930
• The Indian partnership Act 1932
• The Companies Act 2013
 Sources of Business Law

Customs and Usages

Principles of justice Principle of public utility

Interest of Society Observance over a long period of time

For example, Mr. C., landlord, contracts with ABC painters,
based upon a bid they submitted to paint a 100 unit apartment
complex. A dispute arises as to whether ABC has agreed to paint
the common areas or just the apartment interiors. Because the
contract is unclear and doesn't specifically refer to common areas,
a court may look to trade usage to determine whether it is
standard practice in the painting business to include common
areas in such bids. If the court determines that painters typically
include common areas when quoting prices for apartment
complex painting, they will hold ABC liable for painting the
common areas because it was reasonable for Mr. C. to rely on this
trade usage and expect the common areas to be included in the
price.
Judicial Decisions/Case Laws
Is Application of
Foreign Law
relevant?
•“Law has to grow in order to satisfy the needs
of the fast changing society and keep abreast
with the economic developments taking place in
the country. Law cannot afford to remain static.
The Court cannot allow judicial thinking to be
constricted by reference to the law as it prevails
in England or in any other foreign country.
Although this Court should be prepared to
receive light from whatever source it comes, but
it has to build up its own jurisprudence, evolve
new principles and lay down new norms which
would adequately deal with the new problems
which arise in a highly industrialized economy.
If it is found that it is necessary to construct a
new principle of law to deal with -an unusual
situation which has arisen and which is likely to
arise in future on account of hazardous or
inherently dangerous industries which are
concomitant to an industrial economy the Court
should not hesitate to evolve such principles of
liability merely because it has not been so done
in England.”
‘Case Laws’

• It is a type of law. 

• They are judicial decisions that have become so notorious as to be accorded status of a law duly legislated.

• They are usually a creation of the brilliance of the Judge as well as the novelty of the circumstance.

• Ex: MC Mehtha Vs Union of India (Shriram oil and fertilizers)

‘Case Precedent’

• Precedents on the other hand are decisions of superior courts over matters of similar material facts and
circumstance that lower courts in the judicial hierarchy of a given country are bound to follow.

• This means, where there is a position adopted by a higher court in say rape cases or armed robbery, lower
courts cannot vary their decisions to contradict the erstwhile judgment of the higher court in any other rape or
armed robbery case which have similar material facts or set of circumstance.

• The lower courts are compelled to follow the decision except where they are able to distinguish the situation
at hand.
 Merits of Precedents: Demerits of Precedents:

• Consistency and • Complexity

predictability
• Possibility of overlooking
• Flexibility of authorities

• Save time of the courts • Rigid

• Prevent mistakes
 Criminal Law vs Civil Law
Criminal Law deals with
offences that are
committed against the
society. It has varying
degrees of punishment
commensurate with the
crime committed. Criminal
Law will deal with serious
crimes such as murder,
rapes, arson, robbery,
assault etc.
Civil Law is a general law
which solves disputes
between 2 organisations or
individuals. As per Civil
Law the wrongdoer will
have to compensate the
affected organisation or
individual. Civil Law deals
with Property, Money,
Housing, Divorce, custody
of a child in the event of
divorce etc.
 Who is a Plaintiff ?
Plaintiff is a word which is derived from a French word “Plaintive” which means to
express one’s suffering or woe.

Plaintiff is the person who sues the defendant for the damages suffered by him.

He is the person or entity who files the lawsuit and is responsible for filing a complaint
in the court
 Who is a Defendant ?
The word defendant contains the word defend which basically means to forbid, so
defendant has to defend himself in the court of law for the allegations made against him
by the plaintiff.  

We can say that defendant is that person or entity who is being sued by the plaintiff and
the burden of proof lies on the plaintiff as he is the one to file the complaint.
 Who is a counter defendant and counter plaintiff?
The Defendant also has a right to file a counter complaint against the plaintiff

In this case the plaintiff becomes the counter defendant and defendant becomes counter
plaintiff

The burden of proof lies not just on the plaintiff but also the defendant here.

The Plaintiff is generally named first in the case caption

and defendant second.
 Identify the Plaintiff and Defendant in the example

Shreyas is stopped at a red light. Anjali is driving behind

Shreyas and texting on her cell phone, Anjali doesn’t see
Shreyas’s car and she rear-ends him. Shreyas is seriously
injured and he files a lawsuit against Anjali to recover
additional damages.
Identify the plaintiff
and defendant by
reading the case title

SHAYARA BANO vs
UNION OF INDIA
 Petition

• A petition is a written request made in the formal written

application for relief or formally urge or pray for, generally
before a court.

• A petition may be made by an individual, a group of

individuals, or an organization.

• A petition is filed seeking an order from a court. However, in

a complaint, a plaintiff seeks damages from the defendant.
 Petitioner and Respondent

The parties to a petition are called petitioner and respondent, unlike in a complaint
where the parties are called plaintiff and defendant.

Petitioner is a person who files a petition in the higher court who has lost in the
lower court. A petitioner can be a plaintiff or defendant in lower court as either of
the parties can present the case to a higher court for further proceedings.

The person against whom a petition is filed by the petitioner in higher court is
known as the Respondent. Respondent can be either the plaintiff or defendant
from the lower court.
 Public Prosecutor

The public prosecutor is the one who represents the central

government or state government in a particular case. The
public prosecutors aim to safeguard the people by working
towards the achievement of justice.

He is a counsel on behalf of government and like every

advocate he has the obligation to court to be fair an just.
 Advocate General

An officer appointed by the Governor of a state to advice the state government upon
legal matter and to represent it in court. He is the highest law officer of the state.

This officer must be fit for the judgeship of a high court and it is duty to perform such
legal duties assigned by the Governor.

Duties of Advocate General

• Advice the state government on legal matters
• Perform duties as assigned to him by the governor
• Discharge functions conferred upon by constitution
.

Attorney General

The Attorney General of India is the highest law officer of the country and
also the chief legal advisor to the government of India.

The post of Attorney General of India is provided under the constitution

and hence is a constitutional post.
.

Duties of Attorney General

• Advise the government on legal matters that are referred to him by the
president.

• He is also bound to perform any other functions conferred upon him by

the constitution.

• To appear in any High Court, supreme court for a case where the
Government of India is concerned.
 Special Rights of Attorney General

 The attorney general enjoys the right of audience in any court of the
country when concerned with his duties.
 He further enjoys all the immunities and special privileges available to
an MP.
 He has the right to participate in the proceedings of both the houses
without the right to vote and can be designated as a member.
 Solicitor General

• He is one of the officers of the Central Government.

• His duties are the same as that of chief law officer of India, a solicitor
General is a subordinate to Attorney General.
 •The highest level of court is supreme
court

Hierarchy •The state judiciary consists of High Court,

of Courts and

•Under High Court there are many

subordinate courts also known as lower
courts.

•Control of all subordinate courts are

vested in the high court
 Magistrate  Judge
High Courts appoint the Magistrate. The President of India appoints the Judge.
The word Magistrate is derived from the English The word judge has been derived from  French
word “Magistrat.” word juger.
A civil officer or a minor judicial officer in specific A Judge is not a civil officer neither is he a minor
areas like district, town, etc is called as Magistrate. judicial officer. A Judge is a judicial officer who
The mandate of Magistrate is to handle minor cases.  analyses evidence which is presented to him in
relation to a legal case. A judge administers
proceedings of the court and passes his judgements on
the case.
A Magistrate does not have the power to award life A convict can be awarded life imprisonment or death
imprisonment or a death sentence. sentence by a Judge, commensurate with the
seriousness of the crime.
Magistrate handles minor cases Judge handles complex cases
The Jurisdiction of a Magistrate is smaller when The Jurisdiction of a Judge is very vast.
compared to a Judge.
A Magistrate has lesser power than a judge A Judge has more power than a magistrate
 Appointment, posting and promotion of
district judges are made by governor of the
state in consultation with high court.

District A person will be qualified to be a district judge

if the following qualifications are met:

Judge 1. Should not be in the service of the central

or the state government
2. Should have been an advocate or a pleader
for seven years
3. Must be recommended by the high court
for appointment
 In every district (not being a metropolitan area), there
shall be established as many Courts of Judicial
Magistrates of the first class and of the second class, and
at such places, as the State Government may, after

Judicial
consultation with the High Court.

Magistrate The presiding officers of such Courts shall be appointed

Of First by the High Courts.

Class The High Court may whenever necessary confer the

powers of a Judicial Magistrate of the first class or of the
second class on any member of the Judicial Service of
the State, functioning as a Judge in a Civil Court.