3. Legal Issues in Business
Syllabus
Indian Contract Act, 1872
Negotiable Instruments Act, 1881
Indian Sale of Goods Act, 1930
Indian Partnership Act, 1932
Companies Act, 1956
Consumer Protection Act, 1986
Information Technology Act, 2000
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4. Law- Introductory
Law has different connotations :
Set of rules to be obeyed by a citizen
Vocation for a lawyer
Creation of a legislator
Guiding principles to be applied in making decisions – for a
judge
Law includes all the principles and rules which regulate our
relations with other individuals and with the State.
Laws can be :
Civil Laws (CPC-Code of Civil Procedure-1908)
Criminal Laws (Cr. PC/IPC-Criminal Procedure Code-1860)
Mercantile Laws
Industrial Laws
International Laws so on and so forth
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5. Law - Definitions
Holland- A jurist, defines ‘law’ as rules of external human
action enforced by the sovereign political authority i.e.
the State
Salmond- Law is the body of principles recognized and
applied by the State in the administration of justice
Woodrow Wilson – law as that portion of the 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 the government.
It represents the code of conduct which is established
and enforced by the State.
It is an abstract body of rules and also a social
machinery for securing order in community
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6. Objectives of Law
To maintain order
Uniformity in socio-economic justice
Safety and Security
Welfare
Improvement in material, moral and spiritual
wellbeing
For the people and by the people (Thro their
reps.)
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7. Need for the knowledge of law
“Ignorantia juris not excusate”- a maxim
For business
For safety and security
For rights and duties
For general knowledge
For peace and harmony
To avoid conflict
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8. Mercantile Law
Branch of law dealing with contractual
situations and the rights and obligations
arising out of business transactions
between mercantile persons.
A mercantile person can be an individual,
a partnership firm or a joint stock
company.
The aggregate body of those rules which
are connected with trade, industry and
commerce.
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9. Sources of Mercantile Law
English Mercantile Law (Modified)
Common Law- Habits, Usages, Traditions and
Customs (Unwritten but evolved systematically)
Equity- Concept of justice developed by the
judges (Unwritten)
Statute Law
Maritime Law (14th & 15th Century laws)
Roman Laws- based on Bible
Case Laws- Precedents
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