Introduction to

Law and Its Types

Chapter Outline

 Introduction

 Meaning of Law

 Nature/Characteristics of Law

 Types of Law

 Sources of Law

 Binding sources of Law

 Persuasive Sources of Law

Introduction

 What is law ?

 The system of rules which a particular country or community recognizes as regulating the
actions of its members and which it may enforce by the imposition of penalties.

 A system of rules that a society or government develops in order to deal with protection of
individuals rights, crime, business agreements, and social relationships.
Definition of Law By Scholars

 H.L.A. Hart: Law is a system of primary and secondary rules that govern human
conduct.

 Lon Fuller: Law is the enterprise of subjecting human conduct to the governance of
rules.

 Joseph Raz: Law is the union of primary rules (rules that govern conduct) and secondary
rules (rules that confer powers and procedures).
 Features of Law

 Normative System: Provides rules that guide behavior.

 Coercive Nature: Enforced by the state with penalties.
 Formal Structure: Codified and written system.
 Institutional Framework: Operates within established institutions like legislatures and courts.
 Universality and Impartiality: Applies to everyone equally.
 Dynamic and Evolving: Changes with society and technology.
Types of Law

 On the basis of territorial Limits of Operation

 National law & International law
 On the basis of subject Matter of Law
 Public Law and private Law
 On the basis of nature of law
 Substantive Law & Procedural Law
 On the basis of an individual’s duty towards society
 Criminal Law & Civil Law
On the basis of territorial Limits of Operation
 National Law
 Jurisdiction: Applies within the borders of a
specific country or state.
 Creation: Made by legislative bodies
(parliament, congress) or through judicial
decisions.
 Enforcement: Enforced by national courts
and law enforcement agencies.
 International Law
 Jurisdiction: Applies globally and governs
relations between states and international
organizations.
 Sources: Derived from treaties, agreements,
customs, and principles recognized by nations.
 Enforcement: Lacks a central enforcement
mechanism; compliance relies on states'
willingness and international organizations.
On the basis of subject Matter of Law
 Public Law
 Focus: Governs the relationship between
individuals (or organizations) and the state.
 Subjects: Deals with matters of public
interest, such as constitutional law,
administrative law, criminal law, and
international law.
 Authority: Concerns the exercise of
governmental authority and the protection of
public rights and interests.
 Private Law
 Focus: Regulates the relationships between
individuals (or entities) in their private
interactions.
 Subjects: Covers issues such as contracts,
property, torts, family law, and inheritance.
 Voluntary Agreements: Concerns the rights
and obligations between private parties based
on voluntary agreements or disputes.
On the basis of nature of law
 Substantive Law
 Focus: Defines rights, duties, and obligations
of individuals or entities.
 Content: Specifies what individuals can or
cannot do in society.
 Examples: Criminal law (defining crimes and
their punishments), contract law (establishing
terms and conditions of agreements), property
law (defining ownership and use rights).
 Procedural Law
 Focus: Governs the process of enforcing
substantive law and resolving disputes.
 Procedure: Establishes rules and
procedures for conducting trials, hearings,
and legal actions.
 Examples: Rules of evidence, civil
procedure rules, criminal procedure rules,
appellate procedures.
On the basis of an individual’s duty towards
society
 Criminal Law
 Focus: Deals with crimes and offenses against
the state or society.
 Purpose: Aimed at maintaining public order,
safety, and morality.
 Prosecution: Cases are initiated by the
government (prosecution) against the accused
(defendant).
 Civil Law
 Focus: Regulates disputes between private
parties or entities.
 Purpose: Aims to compensate the injured party
and restore them to their original position.
 Initiation: Cases are initiated by individuals or
organizations (plaintiffs) against other
individuals or organizations (defendants).
Sources of Law

 Binding Law  Persuasive Law

 Legislation  Decision of foreign courts

 Precedent  Principles of foreign laws
 Customs or usages  Opinions of experts of jurists
 Agreements and conventions  Text books and journals
 Rules of morality and religious books
Business Law

 Business law, also known as commercial law or mercantile law, encompasses the legal
rules and regulations that govern commercial and business transactions.

 Business law is a branch of civil law and private law.

 Business law governs the creation, enforcement, and interpretation of contracts, which are
essential for conducting business transactions.

 Business law is a branch of legal studies focusing on rules and regulations governing
business activities and transactions.
Features of Business Law

•Regulation: Governs business activities and transactions.

•Contracts: Ensures enforceability and interpretation of contracts.
•Business Entities: Regulates formation and governance of businesses.
•Consumer Protection: Safeguards consumer rights in transactions.
•Intellectual Property: Protects creations and innovations in business.
•Employment Law: Governs employer-employee relationships.
•Commercial Transactions: Manages sales, leases, and other business transactions.
•International Trade: Deals with global business regulations and treaties.
Importance of Business Law

 Legal Framework: Provides rules for fair business practices.

 Rights Protection: Safeguards rights of businesses, employees, and consumers.
 Risk Management: Helps identify and manage legal risks.
 Transaction Facilitation: Guides smooth business transactions.
 Consumer Confidence: Ensures fair trade practices and product safety.
 Dispute Resolution: Provides mechanisms for resolving conflicts.
 International Trade: Guides global business operations and compliance.
 Ethical Standards: Promotes ethical conduct and corporate governance.
 Sources of Nepalese Business Law

Constitution: Provides fundamental principles and rights relevant to business activities.

Legislation: Laws enacted by the Parliament of Nepal, including acts and ordinances specific to
business regulation.
Regulations: Rules and regulations issued by government ministries and agencies to implement laws
and policies.
Judicial Precedents: Decisions and interpretations by Nepalese courts that shape legal principles
applicable to business disputes.
International Treaties and Agreements: Treaties ratified by Nepal that impact international trade,
investment, and business practices.
Customary Law: Traditional practices and customs relevant to business transactions, particularly in
rural areas.
Changing dimensions of Nepalese Business Law and
Constitution of Nepal

 Social Dimension: Ensure business laws promote social equity, protect labor rights, and
encourage corporate social responsibility.
 Political Dimension: Establish stable legal frameworks aligned with democratic principles,
government oversight, and policy formulation.
 Economic Dimension: Foster an investment-friendly climate, regulate markets for fair
competition, and implement taxation policies that support economic growth.
 Technological Dimension: Govern digital economy activities, protect intellectual property
rights, and support innovation in technology sectors.
 Global Dimension: Align with international trade agreements, facilitate cross-border
transactions, and ensure compliance with global standards.
 Moral Dimension: Promote ethical business practices, corporate responsibility, and
environmental sustainability through legal frameworks.
Constitutional framework of Business in
Nepal

The constitutional framework of business in Nepal is primarily guided by the Constitution of Nepal,
which provides the foundational principles and legal structure for business activities. Key aspects
include:

 Protection of property and economic rights,

 Fundamental rights impacting business,
 Legal stability and regulatory oversight,
 Clarity in governance roles,
 Environmental protection integration, and
 Judicial review mechanisms for constitutional compliance
Legal environment of Business in Nepal
The legal environment of business in Nepal is governed by various key acts and regulations, including:
 National civil code,2074
 Companies Act 2063
 Bank and financial institution act 2073
 Nepal Rastra Bank Act 2058
 Agency Act 2014
 Private Firm Registration Act 2020
 Arbitration Act 2055
 Income Tax Act, 2058
 Industrial Enterprise Act 2076
 Insurance Act, 2049
 Transfer Foreign Technology Act 2075
 Labour Act 2074
 Copy Right Act 2074
 Patent, Design and Trademark Act 2022
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