Legal Aspects of Business Unit 1Sikkim Manipal University Page No. 2
This introductory unit on law will help you get familiar with the concept ofbusiness law and other basic legal concepts related to law. After studyingthis unit, you should be able to:
Explain the nature of law
Describe sources of Indian law
Define business legal environment and mercantile law
Analyze the essentials of law
1.2 Meaning and Nature of Law
The term „law‟ is used in many senses: you may speak of the law of physics,
mathematics, science, or the laws of the football or health. In its widest
sense, „law‟ means any rule of conduct, standard or pattern, to which
actions are required to conform; if not conformed, sanctions are imposed.
When we speak of the law of a State, we use the term „law‟
in a special andstrict sense.
1.2.1 Characteristics of law
Law is a body of rules.
These rules prescribe the conduct, standard orpattern to which actions of the persons in the state are required toconform. However, all rules of conduct do not become law in the strictsense. We resort to various kinds of rules to guide our lives.
, our conduct may be guided by a rule such as “do not bearrogant” or “do not be disrespectful to elders or women”. These are
ethical or moral rules by which our daily lives are guided. If we do notfollow them, we may lose our friends and their respect, but no legalaction can be taken against us.2.
Law is for the guidance or conduct of persons
both human and artificial.
The law is not made just for the sake of making it. The rulesembodied in the law are made, so as to ensure that actions of thepersons in the society conform to some predetermined standard orpattern. This is necessary so as to ensure continuance of the society. No
doubt, if citizens are „self
enlightened‟ or „self
controlled‟, disputes may
be minimized, but will not be eliminated. Rules are, therefore, drawn upto ensure that members of the society may live and work together in anorderly manner. Therefore, if the rules embodied in the law are broken,