Indian Institute of Management, Kashipur

Master of Business Administration (MBA)

LEGAL ASPECTS OF BUSINESS (LAB)
Term II, 2020-22 | SESSION 1

EVOLUTION OF LAW
INTRODUCTION TO THE LEGAL ASPECT OF BUSINESS

Prof Baharul Islam

IIM Kashipur
 INTRO TO THE COURSE

•Introduction to Law, Society and Business

•Indian Contract Act 1872
•The Sale of Goods Act 1930
•The partnership Act 1932 25
•Consumer Protection 26-27
•The Negotiable Instrument Act 1881
•Company Law (2013)
•Intellectual Property Rights
•Arbitration and Reconciliation (Case Based)
•Environmental Law (Case Based)
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 EVALUATION

•Quiz (25 Marks)

•Term Project (25 Marks)
•End Term Examination (50 Marks)
•How do we evaluate and distinguish
between grades/values?

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 OVERVIEW

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 ENGLISH LAW

•Indian business law is modelled on the lines of

English Mercantile Law, as India was under
British rule before its independence.
•The difference in the laws of India and England
are primarily on account of their different
business environment, customs and trade
practices.

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 ENGLISH COMMON LAW

•English Common Law refers to a system of

law based upon English customs, usages and
traditions which were developed over
centuries by the English courts.
•It is unwritten or the non – statutory laws.
These are found in the reported decisions of
the court of law.

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 EQUITY

•EQUITY refers to that branch of the English

Law which developed separately from the
common law.
•It is based on principle of fairness and
concepts of justice developed by the judges
whose decisions became precedents.

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 LAW MERCHANTS

•Law Merchants refers to the usages or customs

of merchants and traders that have been
ratified by the courts of law.
•The object is to protect the interest of trade.
The courts in these cases assume that the
parties have dealt with each other on the
footing of customs or usages prevailing
generally
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 STATUTE LAW

•The statute law refers to the law laid down in

the Acts of the parliament.
•It is superior to and overrides any rules of the
common law, equity or law merchant.
•The court of law interprets the meaning of
such enactments and apply them.

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 JUDICIAL DECISIONS

•Judicial decisions are usually referred to as

precedent and are binding on all courts having
jurisdiction lower to that of the court which
gave the judgment. This is also called judge
made laws.

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 CUSTOMS AND USAGES

•Customs or usage of a particular trade also guide the

courts in deciding disputes arising out of mercantile
transactions.
•Such a custom or usage must be widely known, certain
and reasonable, and must not be opposed to any
legislative enactment.
•But where a statute specifically provides that the rule of
law contained therein are subject to any
well-recognized custom or usages of trade, the latter
may over – ride the statute law.
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 DISCUSSION

•Identify an issue
•Suggest ways by which the “issue” can be stopped by
law?
•Formulate laws that has to be enforced to resolve the
issue.

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 Thank You

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