Legal System for Business

Module – 1

SOURCES OF LAW

`Source` means `origin` which something is ultimately derived and often refers to the causes
operating before the thing itself comes into being. Jurists (legal expert) differ widely s to the origin of
law. One of the legal commentator traces its origin in general awareness of the people at any point
of time.

CLASSIFICATION OF SOURCES

1. Formal sources – These are the sources from which the law derives its force and validity. Of
course, the only authority from which laws can spring and derive force and validity is State.

2. Material sources – `Material sources of law` refer to the various processes, which result in the
evolution of the materials, which are the constituents of law.

Material sources may be divided into:

a) Legal sources - These are the sources, which are recognized by the law itself as
authoritative e.g.

i. Statute law - having its force in legislations;

ii. Case law - having its source in precedents; and

iii. Customary law - having its source in customs.

b) Historical sources - The sources, which have no binding, force and which are nor
recognized by law are referred to as historical sources e.g.

(i) Juristic writings;

(ii) Literary works; and

(iii) Foreign decisions.

CLASSIFICATION OF LAW

1. PUBLIC LAW – It is that law which determines and regulates the organization and
functioning of the State. It also determines the relation of the State with its subjects. The following
laws form part of the public law: -

a) Constitutional law – It is the basic and fundamental law of the land, which determines the
nature of the State and the structure of the Government. It may be written (as in India, USA and
most other countries) or unwritten (as in England).

b) Administrative law – It is the law, which deals with the structure, functions and powers of
the organs of the Government.
 c) Criminal law – It deals with various offences, and has for its object their prevention by
providing for and prescribing certain punishments for them.

2. PRIVATE LAW - It is the law, which regulates relations of the citizens with one another,
which are of public importance. In this sense, the State through its judicial organs adjudicates the
matters in dispute between them. Private law comprises the following fields.

a) Personal laws - It is a special law applicable to a class of people.

b) Law of property – It is law relating to transfer of (immovable) property.

c) Law of obligations – It is law relating to Contract; Quasi contract and Torts

Natural Justice

The expressions “natural justice,” “procedural fairness” and “administrative fairness” are sometimes

used interchangeably, however, natural justice is the historical foundational concept that has been

expanded to include the more modern principles of procedural fairness and administrative fairness.

Essentially, natural justice requires that a person receive a fair and unbiased hearing before a
decision is made that will negatively affect them. The three main requirements of natural justice that
must be met in every case are: adequate notice, fair hearing and no bias. Sometimes, all three of
these concepts are grouped together as “the right to a fair hearing.”

• The notice requirement means that the people affected by the decision must be told about the

important issues and be given enough information to be able to participate meaningfully in the

decision-making process.

• The fair hearing requirement means that the people affected are given a reasonable

opportunity to present their point of view and to respond to facts presented by others, and that

the decision-maker will genuinely consider what each person has told them when making the

decision.

• The no bias requirement means that the person making the decision must act impartially when

considering the matter, and must not have any relationships with anyone that could lead

someone to reasonably doubt their impartiality