UNIT I LAW BBA Foreign trade

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Business Laws Unit – I : The Indian Contract Act, 1872

1. Meaning Meaning and and e!nitio e!nition n o" Business Business Laws Laws a) Busi Busine ness ss:: - Bu Busi sine ness ss is an economic activity , which is related with continuous and regular   production and distribution distribution of goods goods and services services for satisfying satisfying human wants. wants. b) Law: - The Oford Oford !nglish !nglish "ictionar "ictionary y de#nes the word word $Law% as the rule rule made by authority  authority  for the proper regulation of a community or society or for correct conduct in life. c) The terms $Business%, $Business%, $&ommercial% $&ommercial%,, and $'ercantile%, $'ercantile%, in relation to law, law, are used used in the same same sense. d) Busine Business ss Law is de#ned de#ned as (Busines (Business s Law is that branch branch of law law, which which compris comprises es laws conc concer erni ning ng trad trade, e, indu indust stry ry and and comm commer erce ce.. Bu Busi sine ness ss law law refe refers rs to thos those e rule rules s and and regulations, which govern the formation and eecution of business transactions made by  various persons in the society. 2. #our #ource ces s o" Law: Law: Source` means `origin` which something is ultimately derived and often refers to the causes operating operating before the thing itself comes into being. Jurists (legal expert) expert) dier widely s to the origin of law. law. One of the legal commentator commentator traces its origin in general awareness of the people at any point of time.  he main sources of business law in !ndia are shown in the table and brie"y discussed thereafter# a) $ng%is $ng%ish h Law: !ndian business law is modelled on the lines of $nglish mercantile law% as !ndia was under &ritish rule before its independence. he dierences dierences in the laws of !ndia and $ngland $ngland are are primari primarily ly on account account of their their dieren dierentt business business environmen environment% t% customs% customs% and trade practices. b) Custo&s or Usage: 'ustom is the most ancient of all the sources of law and has held the most important place in the past though it is importance is now diminishing with the growth of legislation and precedent. precedent. 'ustom is a habitual course of conduct observed uniformly uniformly and voluntarily by the people concerned. o custom shall have the force of law if it in manner violates the undamental *ights.

he +udici +udicial al decisi decisions ons%% usually usually refer referre red d to as c)  Judicial Precedents or Decisions: precedents% are binding on all courts having +urisdiction lower to that of the court% which gave the +udgement. his is also called +udge made law. !n the other words decision ta,en by a court (Supreme 'ourt% -igh court and istrict court) in the past can become a law in that particular country. d) Statute Law: he statute law refers to the law laid down in the /cts of 0arliament. !t is superior to and overrides any rules of the common law% e1uity or law merchant. he courts of law interpret the meaning of such enactments and apply them. !n the other words the bill passed at a parliament by its members can become a part of law system in a country. he constitution of !ndia confers power to enact law on its parliament and legislatures of states. 2hen a bill is passed by the parliament3state legislatures and assented to by the 0resident or 4overnor of a state% it becomes an 5/ct6 or 5Statute6. he bul, of !ndian 7ercantile 8aw is statute law. he !ndian 'ontract /ct% 9:;?% 9=>?% he !ndia !ndian n 0artne artners rship hip /ct% /ct% 9=>) car for /s. ;