LEGAL ENVIRONMENT OF BUSINESSLEGAL ENVIRONMENT OF BUSINESS

Law is an instrument of social Law is an instrument of social justice of the state that seeks to justice of the state that seeks to provide provide justice, stability and justice, stability and

securitysecurity in the society. .It assures in the society. .It assures uniform application of the laws by uniform application of the laws by

regulating the behavior and regulating the behavior and interactions of individuals against interactions of individuals against each other. Law is the each other. Law is the command command

of the sovereign..of the sovereign.. and it’s body of and it’s body of rules recognized and enforced by rules recognized and enforced by

courts of law. . Law is a rule courts of law. . Law is a rule relating to the relating to the actions of human actions of human

beingsbeings. . . .

Purpose of LawPurpose of Law

To maintain To maintain status quostatus quo in society in society ensuring stability and security of ensuring stability and security of social order, enable individuals , social order, enable individuals , maximum of freedom to assert maximum of freedom to assert themselves and determine the themselves and determine the sphere within which the existence sphere within which the existence and activity of each individual will and activity of each individual will be secure and freebe secure and free

Advantages of LawAdvantages of Law

The principle of law provide uniformity The principle of law provide uniformity and certainty to the administration of and certainty to the administration of justicejustice

The existence of fixed principles of law The existence of fixed principles of law avoids the dangers of arbitrary, biased avoids the dangers of arbitrary, biased and dishonest decisionsand dishonest decisions

The fixed principles of law protect The fixed principles of law protect administrators of justice from the administrators of justice from the errors of individual judgmenterrors of individual judgment

Sources of LawSources of Law

Formal sourcesFormal sources- law derives its force and - law derives its force and validity from the time immemorialvalidity from the time immemorial

Legal sources- Legal sources- statuesstatues , precedents, , precedents, legislationlegislation

Historical sources- Historical sources- juristic writings, juristic writings, literary works, commandments literary works, commandments of the godof the god

Legislations- Legislations- Parliament, state assembliesParliament, state assemblies

Classification of lawClassification of law

Imperative lawImperative lawPhysical lawPhysical lawNatural lawNatural lawConventional lawConventional lawCustomary lawCustomary lawPractical lawPractical lawCivil lawCivil lawLaw of contractsLaw of contractsetc.,etc.,

Law of ContractsLaw of Contracts

Human beings live together in a society. A number of Human beings live together in a society. A number of relations are established between different persons. relations are established between different persons. These relations may be These relations may be natural, social or contractualnatural, social or contractual relationsrelations.. The relationship created by nature like mother and The relationship created by nature like mother and child, brothers, sisters are called as natural relations.child, brothers, sisters are called as natural relations. Relations created by the society between the Relations created by the society between the individuals such as neighbors, classmates etc are individuals such as neighbors, classmates etc are called as social relationscalled as social relations . .The relations created by individuals with their own The relations created by individuals with their own willingness to do or not to do something between willingness to do or not to do something between them is know as contractual relations.them is know as contractual relations.A number of legal principles are framed to A number of legal principles are framed to regulate these contractual relations between regulate these contractual relations between individualsindividuals..

TORTSTORTS

A TORT IS A FORM OF CIVIL WRONG. A TORT IS A FORM OF CIVIL WRONG. Generally, a tortious act is explained Generally, a tortious act is explained in terms of in terms of MalfeasanceMalfeasance-misconduct, driving car -misconduct, driving car with out licensewith out licenseMisfeasanceMisfeasance-unlawful manner, -unlawful manner, driving car at excessive speeddriving car at excessive speedNonfeasanceNonfeasance-nonperformance of an -nonperformance of an act, failure to do duty may cause act, failure to do duty may cause injuryinjury

General conditions of General conditions of Liability in TortsLiability in Torts

There must be a wrong committed by a There must be a wrong committed by a person.person.

Wrongful act must result in a legal damageWrongful act must result in a legal damage

A legal remedy in the form of an action for A legal remedy in the form of an action for damages.damages.

Where the remedy of damages is not available or Where the remedy of damages is not available or is only a secondary remedy, then the wrong, is only a secondary remedy, then the wrong, though it is a civil wrong, is not a tort, for ex.. In though it is a civil wrong, is not a tort, for ex.. In public nuisance, the remedy is injunction but not public nuisance, the remedy is injunction but not damagesdamages

Legal damageLegal damage

1.Infringement of a legal right.. 1.Infringement of a legal right.. right in right in remrem2.Presumption of damage or injury in 2.Presumption of damage or injury in law, in case an absolute right is violated; law, in case an absolute right is violated; right in personamright in personam3.Proof of actual damage suffered, in 3.Proof of actual damage suffered, in case the right infringed is not of absolute case the right infringed is not of absolute nature; but of a qualified right nature; but of a qualified right ((trespassingtrespassing))

Every infringement of the plaintiff’s Every infringement of the plaintiff’s right or unauthorized interference with right or unauthorized interference with his property imposes a legal damage.his property imposes a legal damage.

Legal MAXIM 1.- Legal MAXIM 1.- Ubi jus Ubi jus ibi remediumibi remedium

It is the cardinal principle of law It is the cardinal principle of law that law will provide remedy for that law will provide remedy for

every injury. It means “every injury. It means “where where there is a right , there is there is a right , there is a remedya remedy”. in other words ”. in other words there is no legal wrong without there is no legal wrong without remedy.remedy.

Legal maxim 2. Legal maxim 2. INJURIA INJURIA SINE DAMNOSINE DAMNO

Violation of a legal right without Violation of a legal right without causing harm, loss or damage to causing harm, loss or damage to the plaintiff. This is a tort which is the plaintiff. This is a tort which is actionable per se, that is actionable per se, that is actionable without proof of any actionable without proof of any damage or loss. damage or loss. (preventing from cast his (preventing from cast his vote) Ashby Vs Whitevote) Ashby Vs White

Legal maxim Legal maxim 3.Damnum sine 3.Damnum sine injuriainjuria

This means damage without injury. This means damage without injury. In other words, it means the damage In other words, it means the damage has occurred without a legal injury.has occurred without a legal injury.Gloucester Grammar school caseGloucester Grammar school caseFinancial loss suffered due to the Financial loss suffered due to the rival school.rival school.Jai santhoshi ma- religious Jai santhoshi ma- religious feelingsfeelings

THE CONSTITUTION THE CONSTITUTION OF INDIAOF INDIA

PreamblePreamble WE, THE PEOPLE OF INDIA, having solemnly WE, THE PEOPLE OF INDIA, having solemnly

resolved to constitute India into a SOVEREIGN resolved to constitute India into a SOVEREIGN SOCIALIST SECULAR DEMOCRATIC REPUBLIC and SOCIALIST SECULAR DEMOCRATIC REPUBLIC and to secure to all its citizens:to secure to all its citizens:

JUSTICE, social, economic and political;JUSTICE, social, economic and political; LIBERTY of thought, expression, belief, faith and LIBERTY of thought, expression, belief, faith and

worship;worship; EQUALITY of status and of opportunity;EQUALITY of status and of opportunity; and to promote among them alland to promote among them all FRATERNITY assuring the dignity of the individual FRATERNITY assuring the dignity of the individual

and the unity and integrity of the Nation;and the unity and integrity of the Nation; IN OUR CONSTITUENT ASSEMBLY this twenty-IN OUR CONSTITUENT ASSEMBLY this twenty-

sixth day of November, 1949, do HEREBY ADOPT, sixth day of November, 1949, do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.CONSTITUTION.

THE CONSTITUTION THE CONSTITUTION OF INDIAOF INDIA

Right to EqualityRight to Equality Right to FreedomRight to FreedomRight against ExploitationRight against ExploitationRight to Freedom of ReligionRight to Freedom of Religion Cultural and Educational RightsCultural and Educational RightsRight to Constitutional RemediesRight to Constitutional Remedies --1. --1.habeas corpus, habeas corpus, 2.mandamus, 3.prohibition, 4.quo 2.mandamus, 3.prohibition, 4.quo warranto and 5.certiorari,warranto and 5.certiorari,

FUNDAMENTAL DUTIESFUNDAMENTAL DUTIES Fundamental duties.—Fundamental duties.—It shall be the duty of every citizen of India—It shall be the duty of every citizen of India— (a)(a) to abide by the Constitution and respect its ideals and institutions, to abide by the Constitution and respect its ideals and institutions,

the National Flag and the National Anthem;the National Flag and the National Anthem; (b)(b) to cherish and follow the noble ideals which inspired our national to cherish and follow the noble ideals which inspired our national

struggle for freedom;struggle for freedom; (c)(c) to uphold and protect the sovereignty, unity and integrity of India; to uphold and protect the sovereignty, unity and integrity of India; (d)(d) to defend the country and render national service when called to defend the country and render national service when called

upon to do so;upon to do so; (e)(e) to promote harmony and the spirit of common brotherhood to promote harmony and the spirit of common brotherhood

amongst all the people of India transcending religious, linguistic and amongst all the people of India transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to regional or sectional diversities; to renounce practices derogatory to the dignity of women;the dignity of women;

(f)(f) to value and preserve the rich heritage of our composite culture; to value and preserve the rich heritage of our composite culture; (g)(g) to protect and improve the natural environment including forests, to protect and improve the natural environment including forests,

lakes, rivers and wild life, and to have compassion for living creatures;lakes, rivers and wild life, and to have compassion for living creatures; (h)(h) to develop the scientific temper, humanism and the spirit of to develop the scientific temper, humanism and the spirit of

inquiry and reform;inquiry and reform; (i)(i) to safeguard public property and to abjure violence; to safeguard public property and to abjure violence; (j)(j) to strive towards excellence in all spheres of individual and to strive towards excellence in all spheres of individual and

collective activity so that the nation constantly rises to higher levels of collective activity so that the nation constantly rises to higher levels of Endeavour and achievement.Endeavour and achievement.

National lawNational law

National law is the law of the land. National law is the law of the land. The constitution of India is the The constitution of India is the supreme law of the nation. It provides supreme law of the nation. It provides the rights, duties, and the liberties of the rights, duties, and the liberties of the citizens. The laws made by the the citizens. The laws made by the state exercising their legislative state exercising their legislative powers under the constitution have to powers under the constitution have to be in consonance with those of the be in consonance with those of the supreme lawsupreme law

International lawInternational law

While the national law is the law of a While the national law is the law of a nation ,also known as municipal law, nation ,also known as municipal law, International law is the law of nations. International law is the law of nations. Where as International law is the Where as International law is the body of rules which are legally body of rules which are legally binding on states in their intercourse binding on states in their intercourse with each other. International law is with each other. International law is considered to be a weak law because considered to be a weak law because it is not founded on the sovereign it is not founded on the sovereign authorityauthority

The need for The need for International lawInternational law

International law has witnessed a great International law has witnessed a great impetus in the present scenario than ever impetus in the present scenario than ever before.1.Human rights and their before.1.Human rights and their violation2.filing of pleadings, adducing violation2.filing of pleadings, adducing evidence, oral arguments before International evidence, oral arguments before International court of justice, Hague court of justice, Hague ((The de facto (de jure) capital The de facto (de jure) capital of the Netherlands)of the Netherlands) 3.contracts entered by 3.contracts entered by transnational companies, Intellectual property transnational companies, Intellectual property rights,4. issues like nuclear deals, poverty, rights,4. issues like nuclear deals, poverty, maritime, air, space laws, refugees problem, maritime, air, space laws, refugees problem, border disputes, bilateral agreements, border disputes, bilateral agreements, extradition treaties, UNO, Amnesty extradition treaties, UNO, Amnesty international, UNESCO,WTO,W.B,IMF, Curbing international, UNESCO,WTO,W.B,IMF, Curbing terrorism, global peace. etc.,terrorism, global peace. etc.,

Mercantile lawMercantile law

Merchants have their separate courts Merchants have their separate courts called – called – courts of piepoudrous courts of piepoudrous (courts of (courts of Speedy justice)Speedy justice) and the courts were and the courts were incident to fairs and market places.incident to fairs and market places.The common law courts in England The common law courts in England envying the jurisdiction exercised by envying the jurisdiction exercised by these non-official courts, grappled it.these non-official courts, grappled it.The source of mercantile law is LEX The source of mercantile law is LEX MERCATORIA, (an unwritten law) MERCATORIA, (an unwritten law) consisted of only the customs and consisted of only the customs and usages or practices of the tradeusages or practices of the trade

Justice delivery Justice delivery system in Indiasystem in India

Supreme courtSupreme courtHigh courtHigh courtSubordinate courts-----Subordinate courts-----

Civil courts-Metropolitan, City civil Civil courts-Metropolitan, City civil courts, Court of small causescourts, Court of small causes

Criminal courts-District, Sessions, Criminal courts-District, Sessions, Magistrate courtsMagistrate courts

Justice delivery Justice delivery system in Indiasystem in India

TribunalsTribunals Central administrative Tribunals Central administrative Tribunals Industrial Tribunals Industrial Tribunals Labor Tribunals. Labor Tribunals. Consumer dispute redressal Consumer dispute redressal TribunalsTribunals

Civil LawCivil Law

It governs the litigation arising It governs the litigation arising between individuals over between individuals over properties, monetary affairs, properties, monetary affairs, partnership, accident cases etc,partnership, accident cases etc,The Nature of penalty is civil in The Nature of penalty is civil in nature. Liability to compensate the nature. Liability to compensate the affected party will be in the affected party will be in the monetary formmonetary form

Criminal lawCriminal law

In criminal cases, the In criminal cases, the governmentgovernment for violation or injury to public for violation or injury to public rights rights files suitsfiles suits. The State takes . The State takes initiative to file the case. Criminal initiative to file the case. Criminal law governs cases arising out of law governs cases arising out of theft ,murder, cheating etc., The theft ,murder, cheating etc., The nature of punishment is monetary nature of punishment is monetary and imprisonment, and capital and imprisonment, and capital punishment in rare cases.punishment in rare cases.