Week 1 COMMERCIAL LAW Introduction Chapter 1

RANACO EDUCATION & TRAINING INSTITUTE
LAW 243
COMMERCIAL LAW
COURSE OUTCOME
CO1. Students should be able to understand the principles of law

and regulations affecting business transaction ( PO 1 )
CO2. Students should be able to have the knowledge by relating to
the current cases at court ( PO 1 , PO 7 )
C03. Students should be able to understand the term used in the
legal environment of business ( PO 1 , PO 6 )
CO4. Students should be able to implement theoretical concept
into real cases ( PO 6 , PO 7 )
LAW 243 COMMERCIAL LAW

1
CHAPTER 1
MALAYSIAN LEGAL SYSTEM

1.1 Definition of law
1.2 Classification of law
1.3 Sources of Malaysian law
1.4 Judicial system in Malaysia

LESSON OUTCOME
By the end of this chapter, students should be able to:
1.Define the word “law”

2.Know the classification of law and its components in brief
3.Identify the sources of Malaysian law
4.Understand the judicial system in Malaysia

SUBTOPIC 1:
DEFINITION OF LAW

1.1 Definition of law
Activity:
Brainstorm What comes to
your mind when
you heard the
word
Law?

5
CONTINUE
> Oxford Dictionary:
The system of rules which a

particular country or
community recognizes as
regulating the actions of its
members and which it may
enforce by the imposition
penalties.

Source: Oxford dictionary 6
CONTINUE
> Sir John Salmond
(1862-1924):
The body of principles
recognized and applied by
the state in the
administration of justice.

7
Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.
SUBTOPIC 2:
CLASSIFICATION OF LAW

8
1.2 Classification of law
LAW
Public law International law Private law

(individual+state) (state+state) (individual+individual)
Public Private
Constitutional Criminal e.g. Law of e.g. Law
law
international International
law contract Of trust
law law

9
CONTINUE
 Public law :
• The law which governs the relationship between individuals and the
state.
• Public law may be further subdivided into two categories i.e.
constitutional law and criminal law.
• Constitutional law lays down the rights of individuals in the state. It
deals with questions such as supremacy of Parliament and rights of
citizens. It also covers areas dealing with state and federal powers.
• Criminal law codifies the various offences committed by individuals
against the state. A crime is a wrong against the state for which
punishment is inflicted by the state.

10
CONTINUE
 International law:
• The law which governs the relationship between state and
state.
• It may be subdivided into two categories:
1. Public international law
2. Private international law.

11
CONTINUE
 Private law:
• Private law concerned with matters that affect the rights and
duties of individuals amongst themselves.

12
SUBTOPIC 3:
SOURCES OF MALAYSIAN LAW

13
1.3 Sources of Malaysian law
The main sources of Malaysian law are:
A. Written law (also referred to as statute law):

1. Federal Constitution
2. State Constitution
3. Legislation
4. Subsidiary legislation
B. Unwritten law:
1. English law
2. Judicial decision
3. Customary law
C. Islamic law
A. WRITTEN LAW
1. Federal Constitution:
- Supreme law of Malaysia
- Provides the powers of the
Federal & State Governments
- Provides fundamental
rights of individual

15
CONTINUE
2. State Constitution:
- Regulates State Governments
- Contains provisions derived from 8th schedule of the
Federal Constitution
3. Legislation:
- enacted by Parliament and the state assemblies
• Act: laws made after 1957
• Ordinances: - laws made 1946-1957
- laws in Sarawak

16
CONTINUE
4. Subsidiary legislation:
- Laws made under any Acts, Enactments or
Ordinances
- Very important because specify the laws in more detail
and for everyday matters
- Example:
Parent Act (main law) : Hire-Purchase Act 1957
Subsidiary Legislation : Hire-Purchase
(Repossession) Regulation
- Subsidiary legislation made in contravention of either a
parent Act or the Constitution is void.

17
B. UNWRITTEN LAW
1. English law:
- Applicable in the absence of local laws
- Suitable to local circumstances
English Commercial Law?
• Section 5(2) of the Civil Law Act 1956, English commercial law
applies to Penang, Malacca, Sabah & Sarawak
• If no local laws applicable
• Today, many local laws dealing with commercial matters
e.g. Contracts Act 1950, Partnership Act 1961, Companies Act
1965

18
CONTINUE
2. Judicial decisions:
- Judge’s decision
- Doctrine of binding precedent :
Not decide cases arbitrarily- must follow precedents
(previous decisions of similar situations). Each court is
bound by the decisions of courts of the same level or
higher than it in the same hierarchy of courts, whether or
not it believes a decision is correct.

19
CONTINUE
3. Customary law:
- Customs practiced by local people
- Generally, customs relating to family law are given
legal force by courts in Malaysia-marriage, divorce,
inheritance
- Sabah and Sarawak: native customary laws apply
- Peninsular Malaysia:
Adat Perpatih - Malays in Negeri Sembilan & Naning in
Melaka
- land, lineage, election of rulers
Adat Temenggung - many states
- from Palembang, Sumatra

20
C. ISLAMIC LAW
• applicable to Muslims only, does not apply to non Muslims

• family matters (marriage and divorce)
• estate matters (inheritance, wasiat)

21
SUBTOPIC 4:
JUDICIAL SYSTEM IN MALAYSIA

22
ASSIGNMENT
1.4 Judicial system in Malaysia
FEDERAL COURT
COURT OF APPEAL
High Court in
High Court in Malaya
Sabah & S’wak
Syariah Court Native Court Syariah Court
Sessions Court Session Court
Juvenile Court Juvenile Court
Magistrates’ Court Magistrates’ Court
Penghulu’s Court

23
QUIZ
1. The main sources of Malaysian law comprise: statute law,

unwritten law and Islamic law (True / False)
2. The following are written law except:

a. Legislation enacted by Parliament and State Assemblies
b. Judicial decisions of the superior courts
c. Subsidiary legislation
d. State Constitutions

24
CONTINUE
3. Unwritten law also referred to as statute law (True / False)
4. In Perak, Malacca, Sabah and Sarawak, English commercial

law at the date on which the matter has to be decided is
applicable in the absence of local legislation (True / False)

25
CONTINUE
5. Judge decides cases arbitrarily without refer to decided
cases (True / False)
6. The following statements are true except:
a. Federal Constitution provides fundamental rights of
individual
b. Judge must follow precedents (previous decisions of
similar situations)
c. English law applicable in the absence of local
laws eventhough not suitable with local
circumstances
d. State Constitutions contains provisions derived
from 8th schedule of the Federal Constitution

26
CONTINUE
7. Subsidiary legislation made in contravention of either a
parent Act or the Constitution is voidable (True / False)
8. Private law is the law which governs the relationship

between individuals and the state (True / False)
9. Public law is the law which governs the relationship between

state and state (True / False)
10. Public law may be further subdivided into 2 categories:

constitutional law and criminal law (True / False)

27
THANK YOU!

28

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RANACO EDUCATION & TRAINING INSTITUTE

CO1. Students should be able to understand the principles of law

LAW 243 COMMERCIAL LAW

MALAYSIAN LEGAL SYSTEM

LAW 243 COMMERCIAL LAW

By the end of this chapter, students should be able to:

1.Define the word “law”

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

1.1 Definition of law

LAW 243 COMMERCIAL LAW

> Oxford Dictionary:

The system of rules which a

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

1.2 Classification of law

Public law International law Private law

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

1.3 Sources of Malaysian law

The main sources of Malaysian law are:

A. Written law (also referred to as statute law):

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

English Commercial Law?

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

• applicable to Muslims only, does not apply to non Muslims

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

1.4 Judicial system in Malaysia

Syariah Court Native Court Syariah Court

Sessions Court Session Court

Juvenile Court Juvenile Court

Magistrates’ Court Magistrates’ Court

LAW 243 COMMERCIAL LAW

1. The main sources of Malaysian law comprise: statute law,

2. The following are written law except:

LAW 243 COMMERCIAL LAW

4. In Perak, Malacca, Sabah and Sarawak, English commercial

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

8. Private law is the law which governs the relationship

9. Public law is the law which governs the relationship between

10. Public law may be further subdivided into 2 categories:

LAW 243 COMMERCIAL LAW

LAW 243 COMMERCIAL LAW

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