Indian business law is modeled on the lines of English Mercantile Law, as India was under British rule before its independence.

1. Sources of Law
Legal Environment of Business

2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Sources of Law
English Law Judicial
Decisions
Customs
and usage
Indian
Statute
English
common Law
Equity Law Merchant Statute law

4. English Law
• Indian business law is
modeled on the lines of
English Mercantile Law, as
India was under British rule
before its independence.
• The difference in the laws
of India and England are
primarily on account of
their different business
environment, customs and
trade practices.

5. English Law
• The sources of business
law in India are generally
the English laws which
have roots in the
following.
– English common law.
– Equity.
– Law Merchant.
– Statute Law.

6. English Common Law
• It refers to a system of law
based upon English
customs, usages and
traditions which were
developed over centuries
by the English courts.
• It is unwritten or the non –
statutory laws. These are
found in the reported
decisions of the court of
law.

7. Equity
• It refers to that branch of
the English Law which
developed separately
from the common law.
• It is based on principle of
fairness and concepts of
justice developed by the
judges whose decisions
became precedents.

8. Law Merchants
• It refers to the usages or
customs of merchants and
traders that have been ratified
by the courts of law.
• The object is to protect the
interest of trade. The courts in
these cases assume that the
parties have dealt with each
other on the footing of
customs or usages prevailing
generally.

9. Statute Law
• The statute law refers to
the law laid down in the
Acts of the parliament.
• It is superior to and
overrides any rules of the
common law, equity or law
merchant.
• The court of law interprets
the meaning of such
enactments and apply
them.

10. Judicial Decisions
Judicial decisions are
usually referred to as
precedent and are
binding on all courts
having jurisdiction lower
to that of the court
which gave the
judgment. This is also
called judge made laws.

11. Customs and Usages
• Customs or usage of a
particular trade also guide
the courts in deciding
disputes arising out of
mercantile transactions.
• Such a custom or usage
must be widely known,
certain and reasonable,
and must not be opposed
to any legislative
enactment.

12. Customs and Usages
But where a statute
specifically provides that
the rule of law contained
therein are subject to
any well – recognized
custom or usages of
trade, the latter may
over – ride the statute
law.

13. Indian Statute
The constitution of India
confer power to enact
law on its parliament and
legislatures of states
when a bill is passed by
the parliament / state
legislatures and assented
to the president or
governor of a state. It
becomes an act or
statute.

14. Indian Statute
The bulk of Indian
Mercantile Law is statute
law. The Indian contract
act, 1872, The company
Act, 1955, The
Negotiable Instruments
Act, 1881 are instances
of the statute law.

15. Discussion
• Identify 10 reasons why human trafficking is
thriving?
• Suggest 10 ways by which human trafficking
can be stopped?
• Formulate 10 laws that has to be enforced to
curb human trafficking?

16. • Sources of law.