introduction to business law

1. T.RADHA LAKSHMI M.COM,B.ED, M.phil.,
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE WITH COMPUTER
APPLICATION
S B K COLLEGE, ARUPPUKOTTAI

2. BUSINESS LAW
MODULE-1

3. TOPICS
• Introduction to law - presumption of law.
• Definition and scope of Business law –
• Sources of Business Law:
• English Law, Statute Law, Case Law, Customs & usages.

4. INTRODUCTION
LAW:
Law is that portion of
established habit
and
thought of mankind
which has gained
distinct and formal recognition
in the shape of uniform rules
backed by the authority and
power of Government.

5. BRANCHES OF LAW
• INTERNATIONAL LAW
• CONSTITUTIONAL LAW
• CRIMINAL LAW
• CIVIL LAW
• BUSINESS LAW OR MERCANTILE LAW

6. BUSINESS LAW
Meaning:
It is that branch of law comprising
laws concerning trade, industry
and commerce.

7. Scope of Business Law:
• Contracts
• Sale of Goods
• Partnership
• Companies
• Negotiable Instruments
• Insurance
• Insolvency
• Carriage of Goods
• Arbitration

8. Presumption of Law
Every person is presumed to know the law.
“Ignorantia juris non-excusat”
Ignorance of law is no excuse.

9. SOURCES OF MERCANTILE LAW
1. English Mercantile Law
2. The Statute Law
3. Judicial decisions or Case Law
4. Customs and Usages

10. English Mercantile Law
Indian Mercantile Law is built
on the foundation of
English Mercantile Law.
In case of ambiguity,
our courts take recourse to English Law.

11. The Statute Law
• Statute is an Act of Parliament.
• Bulk of Indian Business Law is Statute Law

12. The Statute Laws:
• The Indian Contact Act, 1872.
• The Negotiable Instruments Act, 1881.
• The Sale of Goods Act, 1930.
• The Indian Partnership Act, 1932.
• The Companies Act, 1956.
• The Arbitration and Conciliation Act, 1996.

13. THE INDIAN CONTRACT ACT 1872
• Original Act was comprehensive
• General Principles Sec. 1-75
• Sale of Goods Sec. 76-123
• Indemnity and Guarantee Sec. 124-147
• Bailment and Pledge Sec. 148-181
• Agency Sec. 182-238
• Partnership Sec. 239-266

14. Sections repealed New Acts enacted
Sections repealed
• In 1930 Sec. 76-123
Sale of Goods
• In 1932 Sec. 239-266
Partnership
Replaced by
• Sale of Goods Act, 1930
• Indian Partnership Act,
1932.

15. JUDICIAL DECISIONS
(CASE LAW)
Binding on all courts having jurisdiction lower to that of the court which
gave the judgment.
Courts with equal jurisdiction – generally take cognizance of the
judgment, though not bound by it.
In case of ambiguity, when act is silent,
principles of justice, equity and good conscience
are applied.

16. CUSTOMS & USAGES
• Custom or usage must be widely known,
• Certain and reasonable.
• Must not be opposed to any legislative enactment.
• Where rule of law specially provides that the law is subject to well
recognised custom or usage of trade, the latter may override the statute
law.