Iqra Lecture 1

7/31/2019 Iqra Lecture 1

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Business LawChapter 1



Sources of Law

There is a large number of sources of law.

Formal sources: They are the laws of statesmanifested by statues or decision of the courts.

Material Sources: They are such sources from whichthe law derives its matter. These sources may be

1. Historical sources2. Legal sources

Historical sources:

They consist of such sets of rules framedtraditionally in an authorized way but later theyhave been adopted and accepted as a legal rulesor principles by usage. Such sources have framedCOMMON LAW & EQUITY.



Legal Sources

Legal Sources are

1. Legislature 2. Precedents 3. Customary Conduct 4. Agreement

1. Legislature: It is a part of a state formed bythe parliament of Pakistan (National Assembly,and other bodies to whom working of framing

laws have been delegated. The MNAs presentthe bills which are discussed in parliament andwhen after voting they are passed inconsultation of Senate they become „Laws‟

(Acts).



Legal Sources

2. Precedent: It is a judgment of the court in

court decision which is cited and referred to asan authority for deciding identical cases, theprecedents serve as authority for legal principlesembodied in its decision.

3. Customary Conducts: It so happens that theinitial source of law is based on the customaryconduct of community life.

4. Agreements: In all sorts of contracts theparties incorporate a number of requirements.

Voluntarily which become binding on the

contracting parties in the duration of erf rm nce f c ntr ct .



Meaning: Customs of society are accepted by community andsociety frames rules and regulations and when such rules andregulations are formality expressed in judicial decisions they

become “case laws” simply laws.

Definition: “The Law Merchant” is a kind of PrivateInternational Law administered by tribunals consisting principallyof the merchants‟ customs and commercial usages necessary forconduct of business” Definition: “Common Law” The main source of common law isthe customary conduct of community life. The group life createcustoms and when these customs become stabilize to the extent

that each member of the society is justified in assuming thatevery other member of society will respect them and will act withconformity with themDefinition: “Equity” Equity in fact is a development made on

common law. It is an attempt by the court to remedy the defect of common law on the basis on fairness and good principles.



Court/ Judiciary

Complete

JudiciaryHalf (Quasi) Judiciary

Powers of Lower Court

Supreme Court

Lower Court

High Court

Special Court/

Tribunals

Labor

Courts

Banking

Tribunals

Insurance

Tribunals

Income

TaxAppellate

Tribunals



High Court

Supreme Court

Lower Court is Comprising of Below

Criminal Civil

Judicial

Magistrate

District Judge/

Additional District

Magistrate

Senior

Civil

Judge

Civil

Judge



Lower Court

Criminal Civil

JudicialMagistrate

District Judge/ Additional District

Magistrate

SeniorCivil

Judge

CivilJudge

When periodOf punishment

up to 3 Years

When periodOf punishment

above 3 Years



Judicial

Magistrate

District Judge/

Additional District

Magistrate

Senior

Civil

Judge

Civil

Judge

Against Judgment of the Above the Appeal files before below



BIRD’S EYE VIEW OF CIVIL COURTS

Name of Court Judicial Staff Original jurisdiction

1) Supreme Court of

Pakistan

Chief Justice Writ Jurisdiction in the issues of public

importanceJustices

2) High Court Chief Justice Supervision control, company Bench,

Banking Court.Justices

3) District Court District Judge

Certain suits of unlimited value of subject

matterAdditional

District Judge

4) Civil Court Civil Judge 1st

ClassSuit of unlimited value of subject matter.

5) Rent Controller Civil Judge

2nd Class

Suit having value of subject matter not

exceeding Rs. 50,000.

Family Court Civil Judge 3rd

Class

Suit having of the subject matter notexceedin Rs. 5000



Original

Jurisdiction

District Judge/

Additional District Magistrate

Appellate

Jurisdiction

Judicial

Magistrate

Senior

Civil

Judge

Civil

Judge

Listen appeal against the Order of Below

When period

Of punishment

above 3 Years



Name Of

Courts

Judicial Staff Jurisdiction Authority/Limit to Award Sentences

Highcourt Chief Justice Supervisory Control onsubordinate Criminal courts Many pass sentences as authorizedby lawJustice

Session

Court

Session Judge All other offences not covered in

judicial magistrate jurisdiction

May pass any other sentence as

authorized by law but sentence of

death with confirmation High CourtAdditional

Sessions Judge

Asst. SessionsJudge

As prescribed by provincial govt.in one or more courts

Any sentences authorized by lawexcept death sentences or

impressments exceeding 7years.

Magistrat

e Courts

Judicial Magistrate

First Class

Local areas as defined by

Provincial Govt.

i) Imprisonment not exceeding one

year

ii) Fine not exceeding Rs.15000/=

Judicial MagistrateSecond Class

Local areas as defined byProvincial Govt.

i) Imprisonment not exceeding oneyear


Judicial Magistrate

Third Class

Local Areas as fixed by Provincial

Govt.

i) Imprisonment not exceeding

one month


Special JudiciaryMagistrate

Powers given by Provincial Govt.on recommendation of High Court

Subject to the authority vested byProvincial Govt.

BIRD’S EYE VIEW OF CRIMINAL COURTS



Four Chief Justice- High Court

In Every Province

Punjab NWFP BalouchistanSindh

Chief Justice - Supreme Court



High Court

In Every Province

Punjab NWFP BalouchistanSindh



Two important Bodies

Law Making

(Legislating)

Law Implementing

(Judiciary)

President

Parliament

Governor

Provincial Assembly

Supreme Court

Lower Courts

High Court



Law

Name of

Law

Year of

Becoming

Law

Making

Body

Contract ACT 1872

Always read three parts as name of Contract



Law

Name of

Law

Year of

formation

Making

Body

Income Tax Ordinance 2001

Always read three parts as name of Contract



PROCESS OF LEGISLATION BY

PARLIAMENT

Meaning of Legislation: according to theconstitution of Islamic Republic of Pakistan 1973Pakistan Parliament consist of a. Senate b.National Assembly Parliament is the supreme

law making body and is not subject to any legallimits on its powers to create, alter repeal earlierstatues overrule case laws developed in thecourts and make new laws (enact) on mattersfor which no law exists. It cannot however

prevent future Parliament to change the law.The work of enacting law by Parliament meanslegislation.



PROCESS OF LEGISLATION BY

PARLIAMENT

The act begins as a bill after passing throughthe National Assembly and Senate becomes lawon the granting of acceptance of the President

Act is binding on every one of the purpose of Actof parliament to:

Create new law when none exist before.

Consolidate existing law

Amend existing law Cancel existing law

Authorize taxation

Codify and clarify existing law.



Law making body

President and

Governor

ACTOrdinance

Parliament and

Provincial

assembly



ACT is made by

ParliamentProvincial

Assembly

Jurisdiction

Of Law

Whole

Country

Jurisdiction

Of Law

Whole

Province



Ordinance is made by

President Governor

Jurisdiction

Of Law

Whole

Country

Jurisdiction

Of Law

Whole

Province



Parliament

National

AssemblySenate



Bill

National Assembly

2/3rd Majority Pass

Senate

President Of PakistanBecome

LAW



Relationship

Is Created by

Blood Contract

Brother & Sister

Father & Son

Husband & Wife

Sale / PurchaseEmployer / Employee

Landlord / Tenant

Partnership Business



How to become owner of Property/Goods

By

Inheritance Contract

Seller looses ownership &

buyer gets ownershipIncludes GIFT,

Purchase, Sales

Iqra Lecture 1

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