Introduction of law

 Certain rules ,regulation and principles are existing in every society

for guiding and governing the conduct or behavior of its members.
 Those rules and principles are enacted or made by the members of
the same society who are the subject of rules and principles.
 Law is the standardized forms of such rules and principles.
 The term law indicates that legal instruments which comprises
several forms of rules and principles.
 Law guides and treats equally to the every person.
 Being a subject of law every member of society should regulate
his/her conduct/act as prescribed by the law with in the ambit of
the law.
 Every one should know and must follow the law.
 Ignorance of law is no excused.
 Law is not the end but the means to achieve the ends.
 Law is a binding principles or rules made by the competent

authority or state to control, systematize, regulate the human

conduct or activities.
 Law is believed a valid instruments to developed society as

expected manner.
 There are various school of thought have been developed in

the realm of law/jurisprudence with the pace of time.

 Natural school of thought
Believed that the law is the will of almighty , and it is universal in nature. It
is the product of reason, intuition , nature, morality, ethics , etc.

Analytical/ Positive School of thought

Regards the law is the command of sovereignty backed by sanction.

The Historical school of thought

Emphasizes on tradition, practice and lives of people and says that the
customary laws are the true laws.
The sociological perspective
Functional approach: Has considered the law is the form of social control or
engineering. Law is an instrument to balance the several conflicting interest
in the society.
The socialistic school of thought
Law is the instrument to exploit the suppress class by the ruling class.
The realistic school of thought
Law is made by the court while deciding the dispute in the adjudication.
 The post modernist perspective :
 Law is merely a collection of beliefs and pre- judice that

legitimate the injustice in society. The wealthy and powerful

persons use the law as a tool to maintain their place in the
hierarchy. Law is politics non the less.
 In this way, every thought of school has made different view

on law. There fore , it is very difficult to prescribe single

definition. Law has been defined by different authors, jurists,
schools and dictionaries differently.
Definition of law
 Salmond : Law is the body of principles recognized and
applied by the state in administration of justice.
 Salmond : Law is not right alone or might alone, but is a

perfect combination between the two.

 Holland :A law is the general rule of external action, enforced

by a sovereign authority.
 Hindu religious book VEDA : Stress that law is more powerful

than the law maker is the characteristics of law.

 Law is the king of the kings, far more powerful and rigid than

them; nothing can be mightier than law.

 John Austin : Law is the command which obliges a person or
persons to a course of conduct.
 Blacks law dictionary : law in its generic sense is a body of

rules of actions or conduct prescribed by controlling authority

, and having binding force. That which must be obeyed and
followed by citizens subject to sanctions or legal
consequences.
conclusion
 Law is the set of rules of conduct of society.
 It is enacted by the sovereign authority.
 It regulates the external human behavior.
 It applies indiscriminately to all.
 It is the most powerful in the world.
 It helps people to live in a peaceful environment.
 It stops/protects people from going to the worse way.
 It is the combination of power, rights and duties.
 It is inevitable to develop the society.
 Law and justice are interrelated.
Nature/characteristics of law
 Law is interlinked with society. It is the standard to maintain their
relationship between society and members. In the absence of law
what kind of the society becomes……….? Here are some of the
natures of society.
 Promulgation of law.

law is enacted/made by competent authority/sovereignty_

parliament.
Law should follow the principles of natural justice :
-based on reason and rationality
-no one should be judge in his/her own case.
-adequate hearing.
 Reflection of social interest :
 -interest of people.
 -maintain balance in social interest.
 -should be reflect of social values.
 Rigidity :
 -can not be changed day by day for some one’s interest.
 -covers the interest of larger society.
 -for social solidarity and harmony.
 Equal treatment/equality :
 -all are equal in the eye of law.
 -no discrimination among people.

Dynamic/changeable :
 -on the basis of demand of society.
 Power;
 -power to enforce.
 -punishment in case of violation.
 -binding power.
 Supreme in position:
 -even law makers are the subject of law.
 -king of the kings.
 Justice;
 -law and justice are interrelated.
 -law is the means to provide justice.
 -means not end.
 Administered by the court;
 -final interpretation by supreme court.
 -precedent.
Objectives of law
 To maintain peace and security.
 To maintain the social, economic and political stability in society.
 Maintain social solidarity and harmony in country.
 Contribute for strengthening public welfare ,national economy, and
industrial and commercial investment .
. To prohibit criminal activities and harmful human conduct .
. To achieve social justice through rational allocating of resources
available in society/state. To contribute to make the nation a developed,
prosperous and civilized country in the world or international
community.
Types of law
 Different laws may be enacted for different purpose and there is no
single basis for classifying law in certain category/ types. Anyway
classification of law helps to understand the concept of law and its
sense or application.
 On the basis of creation or nature
 Substantive law
 Procedural law
 On the basis of jurisdiction
 Criminal law
 Civil law
 On the basis of legal effect
 Private law
 public law
 On the basis of spare of application
 National law
 International law
 Substantive law
what we understand in general sense of law is substantive law.
- It is a fundamental/major part of law.
- It is related to rights, duties and liabilities.
- It is an end law.
- It is based on the legal principle related to subject matter and

motives of law.
- It describes what a law ought to be.
- It is known as fundamental law.
 Procedural law.
-provisions of the procedures to achieve the aims of the law.
-deals of process or remedy.
-it deals the process of litigation.
-it deals with “how the content of law is implemented.’’
-describes the methods and ways to achieve the rights
prescribed in substantive law.
-e.g. Evidence law.
 Differences between substantive and procedural law
Issues Substantive law Procedural law
Dealings It deals with rights, duties and liabilities It deals with the process of remedy

Effect It has only prospective effect It has retrospective effect

type It id doctrinal or major part of law It is supplementary part of substantive
law
Relation It regulate the relation between the parties of the It regulate the relation between the
between case parties, parties and court

crime It defines the human conduct as crime It deals about to prove as crime

Punishment It determents the amount and method of It determent to impose the punishment
punishment
supremacy It is supreme in conflict with procedural law It is not supreme but subordinate

Nature It is complex and regarded as end law It is simple and regarded as means law
 Criminal law : defines, determines the crime and punishment.
Whoever fails to follow or breaches the law; a punishment will be
determined for them under the criminal law . The consequences may
vary nominal penalty to the life imprisonment. It is rigid/hard law.
 Civil law; it is related to the rights, status, position and property of

the parties. It does not concern the matters relating to punishment.

It is useful to restore the rights and authorities of man.
Thus criminal law deals with wrong done to society, while civil
law deals with the wrong done to the individuals. Law of contract, law
of property , family law etc are the examples of civil law.
 Private law; it is directly related to the individual interests and
or the interest other than public matters. The nature of private
and civil law is the same.
 Public law; it is related to the public interest and crime

regarding to public security, public health. E.g. constitutional

law , administrative law, criminal law.
 Private law relate to whom the law is addressed. It relates to

particular affairs of an individual where as public law relates

to the institutions and public affairs.
National law : Enacted by sovereign authority/parliament. It is
operative within national territory. Hard law. Punishment is
given to violator.
International law: is the body of principles recognized and
applied civilized nations or international organizations. Soft law.
Moral law. For the nations. Eg. Rules of WTO , rules of UN, ILO,
treaties etc.
Sources of law
 Sources of law : sources of law means origin of law. It may be
place, institution, material, incidence or cause from where the
law emerges.
 Here are major five sources of law.
 Legislation
 Precedent
 Customary law.
 Executive orders.
 Conventional law.
 Legislation: legislation is the law made by the legislative
body of the government. i.e. Parliament or statutes. It
possesses and enjoy the law making power. It is the main
source of law. It is superior than other sources of law. The
legislature draft, amends, and ratifies the law. constitution
of Nepal 2072, contract law; 2056, arbitration act;2055.
etc. parliament can also delegates authority so executive,
some organizations or body can make some law under
this authority. Orders, regulations and bylaws made by the
government.
 Precedent : precedent is a judicial decision which contains in itself a
principle. such principle is created in the course of verdict which fulfills the
vacuum of law. Precedents are regarded as the law for similar kinds of cases
and binding for the subordinate courts. The supreme court of Nepal has only
the authority to produce precedents in our country. The precedents may not
be binding or lose its binding force in the following situation.
-distinguishing facts
.- conflicting with a fundamental
principle of law. -character to
be too wide.
-overruled by another principle or by statute.
-declared decision without care of per incuriam( essential
points ) of law.-obscuring ratio decidendi( the reason for deciding case).
 Customary law: customary law derived from the customs and the usages
of society. Custom is the habitual behavioral system of human society. A
valid custom must meet the following characteristics.
-it must be from time immemorial(antiquity).
-should be followed
continuously(consistency). -
rational or positive.
-should be certain and definite.
-it should not be immoral.
-it should
not be against the public welfare and justice.
-it should not be against of existing law of the state.
 Executive orders: an executive body/government also makes
laws in the name of ordinance ,order and [Link] also
fulfills the vacuum of law and is more useful to maintain day to
day administrative function of the executive. Under the delegation
of power of legislative; executive makes law.
 Conventional law: it may be in the form of contract between two
or more parties , treaty between the nations, international laws
are the collections of such conventional laws and agreements.
 Opinion of experts; The professional opinions may give
instructions to the law maker. It is also the source of law in Nepal.
Business law
 Meaning : business law is the combination of two terms- business and law.
Business refers to the vast array of economic activities, in which goods and
services are supplied in exchange for some payment, usually money. It includes
buying and selling activities, manufacturing products, extracting natural
resources and farming. Law is the set of rules and legal principles to regulate
external human activities. Business law is that set of rules and principles which
regulate any type of business activities.
 Business law encompasses all of the laws connected with business. It is an
aggregate of those contemporary legal rules , which are connected with trade,
commerce and industry. It is also known as commercial law or mercantile law.
 Business law is not a separate discipline; it is a part of civil law.
 Business law includes; law relating to contract, sales of goods, agency, industry,
company ,indemnity, bailment and pledge BAFIA, intellectual property etc.
 Definitions;
 N. D. Kapoor- ‘’ mercantile law is also used to denote the aggregate body
of those legal rules which are connected with trade, industry, and
commerce”
 A.k Sundaran- ‘ business law provides legitimacy, security,
control and incentives to business [Link] also protects rights and
interests of consumers of labour , business and society.
 [Link]-’’ Mercantile law may be defined as that branch of law
which deals with the rights and obligations of mercantile persons
arising out of mercantile transactions in respect of mercantile
property”.
 Govinda ram Agrawal-’’ business legislation in Nepal consists of
laws, rules, regulations and ruling of the courts of law. It defines what
business can and cannot do’’.
 Thus business law is that part of civil law , which deals with all the
laws connected with every business activity and rights and
obligations of business persons and business firms arising from the
business transactions . It helps the business community to carry its
transactions without any fear and hesitation , with certainty and
confidence”
Nature/characteristics of business law
 Business law is a fast growing part of civil law which possesses certain
characteristics.
 Regulates trade, industry and commerce.
 Concerns every business activity of business community.
 Includes the law of contract , company, industry, agency, sale, banking,
insurance, arbitration, insolvency.
 Has no watertight demarcation with the other branches of law.
 Protects rights and interest of business community.
 Encourage business community by providing facilities( security,
legitimacy, control and incentives).
 Is the most important means to create positive environment for the
prosperity of business.
Importance of business law
 The role of business law is vital in business sector. It is mainly
influenced by economic system and economic policy. Business
law plays vital role for the formation and commencement,
operating, adapting, establishing, giving dynamism and
expansion of business and maintaining social responsibilities.
 To protects the rights of citizens.
 To regulate business practices.
 To deliver justices and settle business disputes.
 To protect the rights of consumers.
 To develop national economy.
 To flourish capital and markets.
 To represent economic policy of government.
 To enforce public and private laws.
 To create favourable business environment.
 To develop skill and employment.
Sources of business law in nepal
 The sources of business law may differ from country to country
on the basis of social, economical, political, religious, cultural
and geographical situation. Sources of business law are:
 Customs and usage :the customary rule is binding, where it is
ancient, reasonable, continuously followed since years and
recognize by state. That should not oppose to statuary law,
morality and public welfare. Such business customs is
obligatory to the particular place.
 statutes/legislation: statutes are called statutory law or
legislatory law, which is enacted by parliament body of
government. Most of laws are statuary laws.
 Judicial decision/ precedents: a precedent is a judicial decision
which contains in itself a [Link] fulfils the vacuum of [Link] is
the application of equity and conscience of judiciary authority in
the course of a verdict of the business cases.
 Executive orders: executive body also makes in the name of
ordinance, Order and regulation. It also fulfil the vacuum of law.
 English mercantile law: business law was evolved in [Link] is
the pioneer of business law in the world. Nepal and India are
conjoined and influenced by the British rules since years.
 Professional opinions of experts : lawyers and critics may play
significant role in creating good legal environment. The opinions
and explanations made by such professionals may give proper
instructions to the law man.
 Business agreements, conventions :bilateral agreements between
the nations and conventions of the business communities are the
significant sources of national and international business law.
Conventional law refers to any rule or system of rules agreed
upon by the parties to regulate their business conduct.. It
determines the rights, duties and liabilities of the parties
concerned.
lEgal environment of business
 Meaning and definition :legal environment means the
surrounding connected with law. Legal environment of
business refer to the aggregate of all types of laws intended
to encourage, protect, guide, regulate and restrain the
business activities. LEB gives us an overview of legal concepts,
principles and issues that affect everyday business decisions.
 According to Koontz and Fulmer: “ legal environment are the

various laws, court decisions and governmental regulations

that influences over lives and business operations.”
Pro. Dr. Prem R. Pant : “the legal environment refers to the
framework of laws, regulations and court decisions intended to
encourage, guide and control business activities.”
Pro. Dr. Govinda Ram Agrawal: “ legal environment refers to all
the legal surroundings that affect business activities in Nepal. It
promote and restrains business activities. It influences business
policies in practice.”
Thus legal environment of business refers to all the surroundings
create by an array of legislator, executory, precedential and
customary laws that influence the public institutions, business
organizations and their activities.
Nature of leb
 It helps to comprehensive study of :
 The existing laws of business.
 Rule of law, legal principles and legal frameworks concerned

with business.
 The economic policy of the government.
 Legal effect in business in the context of entrepreneurship,

employer- employee relationship, competitions, consumer

protection, corporate governance.
 It gives introduction to fundamental legal institutions and

concerning procedures.
 Nature of LEB
 It helps to comprehensive study of :

 The existing laws of business.

 Rule of law, legal principles and legal frameworks concerned with

business.
 The economic policy of the government.

 Legal effect in business in the context of entrepreneurship,

employer- employee relationship, competitions, consumer

protection, corporate governance.
 It gives introduction to fundamental legal institutions and

concerning procedures.
 It provides information on past experiences, regulations of
present activities and direction of future programs.
 It gives instructions and alternative ways to settle the

business disputes methods.

 It guarantees the rights of aggrieved party and penalty of law

violator.
 It clarifies information on prohibitory, permissive, mandatory

and facilitating laws.

 It protects people from the unfair business practices.
 It tends to supply the theoretical knowledge and foundation,

which the business constantly demands.

 It develops applicable skill and knowledge in relevant

circumstances; information, globalization, computerization,

civic responsibility.
Importance to study of leb
 A business person/manager is concerned with the legal provisions that
are concerned with his business activities. In every step in his business
knowledge of existing legal system is very essential to achieve is business
goal. The importance of study LEB is very crucial for these reasons:
 For the formation and commencement of business. Law is the basis of any
type of business. Different kinds of business must be registered in the
government office according to the prescribed ways and provision to get
validity, to acquire facility, protection from unfair business practice.
 For the operation of business. Law is very essential for success any
business. If concerned law is conformed, it supports if breaches it
imposes punishment. “Ignorance of law is no excused’. If do not conform
name, fame. Existence of business may be in danger.
 For adaptation. it is a concern of any business person or firm
to adapt with the contemporary as well as the emerging legal
environment. One must be aware of legal provisions and to be
able to suit in the new situation. If cannot adapt business may
face number of difficulties.
 For stability. A mistake of law turns the business to nullity and

illegality. Sometimes, legal mistake may threat the existence

of the business. It may be more costly than profit. Legal
mistake make you liable to penalty, punishment and threat to
the reputation of the business.
 For dynamism. If you succeed any sort of business , number
of new business opportunities welcome you. You do not gain
profit only but lots of experience also in legal procedure and
dignity. You can develop your small business to progress and
invest in new areas.
 For expansion of business relation. A successful business/

business person comes to the contact of a variety of business

organizations. The knowledge and experience you get, helps
you know the implications of some special kinds of contract
and ways of its performance.