BUSINESS LAW

Essential elements of legal systems and international business

transactions
Analyzing the difference between different legal systems
 COMMON LAW
 CIVIL LAW


 Formulated in England.  Formed in continental

Europe.
 Built up over a long
 Judges apply the law and do
period of time and follow
not follow previous cases.
previous cases.
 There is a difference
 Judges decision creates between those who draft the
law and they are used law and those who apply
later. the law. Judges don’t make
the law.
  COMMON LAW  CIVIL LAW

 Codification is the process  Codification is understood

of putting case law on to be a comprehensive
statutory basis. exercise.

 Source :
 Sources : - Constitution
-Common law -Administrative
-Equity regulation
-European -EU law
 Court is generally expensive,
 Very slow and lengthy process,

 Conflict in law between the parties country,

 Proceedings kept on record,

 Open to public and no secrecy is maintained,

 Requires physical presence,

 Even a simple case requires a day in a court,

 Expensive for geographical distance.

 Cheaper than court,
 Quicker and informal,

 Secrecy is maintained,

 Physical presence is not always necessary,

 Parties can choose their arbitrator,

 Flexible and parties can choose venue and timing,

 Gives fair solution.