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Subject notes to business law TU BBS 2nd year.

Business Law(BBS 2nd Year)

CHAPTER-1

Introduction to Business Law: 

 

There are different types of activity in a society. Business is also a part of social activity, regulated by the law. Business refers to the economic activities in which goods and service are supplied in exchange for some payment. It includes buying and selling, manufacturing products, extracting natural resources. Business law is the law concerned with business activity. Business law is an aggregate of those rules, which are connected with trade, commerce and industry. It is also known as commercial or mercantile law. It is the law which provides the different provisions to the commercial community and regulates their activities relating to the trade and commerce. Which includes the law relating to contract, sale of goods, agency, industry, guarantee, insurance and banking, arbitration, foreign investment and technology transfer etc. Business law is not separate discipline, it is a part of civil law, which deals with the right and obligation of business firms that arises from there business activity. There are different laws in which the significant provisions are made to regulate the business related activities, and these laws are known as business law.

According to 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."

Features of Business Law

i) Regulates industry, trade and commerce.

ii) Regulates every business activity of business community.

iii) It has no watertight demarcation with the other branches of law.

iv) Promotes rights and interest of business community.

v) this is the most important means to create positive environment for the prosperity of business.

With the increasing complexities and technologies of the modern business, the scope of business law is automatically extended.

Importance of Business Law:

The business law leads the prosperity of a country. It regulates......
and affect the business since before the establishment of business firm, while conducting the business and to its final stage. The role of business law is vital in the business sector, but it is guided by the economic policy of the state. A business person must know all the concerned laws. Such laws play vital role for the formation and commencement, running, adapting, establishing, giving dynamism and expansion of the business as well as fulfilling business goals and maintaining social responsibilities. The importance of business law can be viewed on the following grounds:

a) protection of economic right

b) Regulation and Systematization of business

c) Commencement and development of business

d) Enforcement of business Contract

e) Delivery of Justics

( you can consult with your book for the brief explanation of the above points)

Sources of Business Law

A source means an origin or resources or cause or place from where law emanates. The term source of Nepalese business law denotes two meaning. Firstly the place or point from where the law begins and secondly the place from where the rules of business activities get legal authority. The main sources of business law are discussed below:

a) Custom and Usage: The custom is known as particular way of life or behavior. If such behavior is followed continuously by the people in the society, it becomes a customs or usages which are important sources of law. This types of custom should not oppose to statutory law, mortality and public welfare. If there is no legislation, no precedents the matter is to be decided by the custom or usage of that particular.

b) Statutes/ Legislation: The legislatory law come from parliament or law making body of the nation. This types of law is the outcome of demand of people and need of the time. It is made after fulfilling a series of discussion by lawmakers. Now a days most of business activities are regulated by the law made by parliament.

c) Judicial Decision: Judicial decision are known as precedent. Precedent is a judicial decision which contains in itselfs a principle. In other words it is the earlier decision of supreme court which is taken as a rule while deciding the later cases. Where there is no law to deal the problems in such cases the court can make decision in the light of justice and equity such decision are treated as law for that matter. It is the one of the major sources of modern business law.

Other Sources ( this should be included in your answer the difference is that the above are the main sources)

d) English Mercantile law: business law was developed in England. It is the pioneer of business law in the world. Nepal is conjoind influenced by the British rule since year.

e) Professional Opinion of experts: Lawyers and critics may play significant role creating good legal environment. The opinion and explanation made by such professional may give proper instruction and better contribution to the development of law.

f) Business Agreement, Conventions: Conventional law refers to any rule or system of rule agreed upon by the parties to regulate their business conduct. International business organization are more active in national, region and world business nowdays. Examples: ( WTO, SAFTA) . And bilateral agreement between the nations and conventions of business communities are the main sources of national and international business law.

Legal Environment

Legal environment of business refer to the aggregate of surrounding connected with the law that influence the business activities and business firms. It refers to the aggregate of all types of law, regulation. Acts and precedents intended to encourage, protect, guide the business activities. Such law are made and enforced by the state for the prosperity of every aspect of business.

According to Prem R Panta " The legal environment refers to the framework of laws, regulation are court decision, intended to encourage, guide and control business activities. “

Business law chapter 2- Contract( TU BBS 2nd year)

Business law chapter 2- Contract( TU BBS 2nd year)

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