SUBJECT:

BUSINESS LAW
Objectives of the course
 The objectives of the course are to
inform students with various
aspects relating to business under
earnings and operations
 Its particularly intended that
students should have a full
understanding of legal principles
relating to corporate business
 Chapter one
Introduction to the legal system and
the structure of the court
Introduction to the legal system and the structure of the
court

 Main Points
 Definition and classification of law
 Civil and criminal liability
 Source of law including common

law and equity, legislation, judicial

precedent and 1995 constitution
 the structure of the system in

Uganda
The definition and classification of law

 law is a system of rules that a society

or government develops in order
to deal with crime, business
agreements, and social relationships.
 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
obligation of penalties
The definition and classification of
law
 Principles and regulations establis

hed ina community by some auth
ority and applicable to its people,
whether in the form of legislation 
orof custom and policies recogniz
ed and enforced by judicial
decision.
Classifications of law

 Classifications of law
 Our legal system is made up of

both a criminal justice system

(police, prosecution and defense
lawyers, the courts and prisons),
and a civil justice system.
Classifications of law
 These two systems exist to deal
with two different types of laws
that have different purposes and
lead to very different
consequences if they are broken.
We will now examine the two main
types of classification of law.
Criminal law and Civil law

 One of the most common

classifications and one that is
used by many legal systems is the
distinction between civil and
criminal law. As civil and criminal
law has different purposes,
different systems for dealing with
them have developed.
Criminal law and Civil law

 Criminallaw is about creating laws

for the protection of society as a
whole and providing punishment
for those who break those laws.
Criminal law sets out types of
behavior that are forbidden within
society and if the behavior occurs,
then punishment will follow.
Criminal law and Civil law

 Ifyou commit a crime, you have

offended against the state and the
state has the right to accuse you.
At the end of a case, if the
defendant (the person who is
assumed to have broken the law)
is found guilty, they will be
punished by the state.
Criminal law and Civil law
 Civil
law is used to resolve disputes
between individuals (which can
include companies and corporations).
At the end of a case, the party at
fault has to pay compensation or
comply with another suitable remedy,
such as an injunction (an
authoritative warning or order).
Criminal law and Civil law
 There are a number of differences
between criminal and civil law. These
differences include the following.
 Criminal cases are brought to maintain

law and order and to protect society.

Civil cases are brought to support the
rights of individuals and to provide
redress.
 The cases take place in different courts.
Criminal law and Civil law
A criminal case is usually brought
by the Crown Prosecution Service
(CPS) (agency for conducting
criminal prosecutions) on behalf
of the state (or Crown). A civil
case is brought by an individual or
company or corporation.
Criminal law and Civil law
 The terminology used is different,
and the person starting the case
is given a different name by each
system. Criminal cases are usually
brought on behalf of the Crown
(state) and civil cases are brought
by a claimant, i.e. an individual or
company or corporation.
Public and private law
 Another classification that is
commonly used is that of public
law and private law
 Public law involves the state or

government in some way. There

are three main types
Public and private law
 1. Constitutional law: this controls how
the government operates and is used
to resolve any disputes over
constitutional matters, for example,
who is entitled to vote.
 2. Administrative law: this controls

how Ministers of State and public

bodies should operate and make
decisions.
Public and private law
 3.Criminal law: this also comes
under the heading of public law
because it involves the state. a
crime is regarded as an action
against society and the state as a
whole.
Public and private law
 Privatelaw concerns the smooth
running of society and covers
areas such as work, business
dealings, education and everyday
life. There are many different
areas of law that fall under the
heading of private law.
Public and private law
 Examples include employment
law, the law of tort, (based on the
idea that people are liable for the
consequences of their actions,
whether intentional or accidental)
and the law of succession (the law
regulating the inheritance of
property).
Civil and criminal liability

 Civil liability is the term that is

used when someone commits a
tort (personal injury) and must
face the consequences.
 Three major types of torts
(wrongful acts) leading to legal
liability include:
Civil and criminal liability
 Intentional torts (e.g., beating and
battery)
 Negligence torts (e.g., car
accidents)
 Strict liability torts (e.g., product

liability)
Civil and criminal liability

 Intentionaltorts are committed

when the doer has a clear purpose
of causing harm to the victim. The
harm is not caused by an accident
or simple forgetfulness. Rather,
the act is planned with the
intention of damaging the other
person.
Civil and criminal liability
 Examples of intentional tort (liability)
include:
 Battery - Hurting a person through physical

acts or by using an object such as a gun.

 Assault (physical attack) - Threatening to

commit battery, although no injury

occurred.
 Defamation - Speaking lies about another

person that result in some kind of harm.

Civil and criminal liability
 Negligence torts are the most common
type of civil liability. They are not
committed with the purpose of
harming another person; they are
considered to be non-deliberate A
case of negligence might occur if a
person fails to take proper protection,
and someone else gets hurt because
of this.
Civil and criminal liability
 Negligence torts include: 
 Criminal negligence - Breaking

the law with a negligent act, for

example leaving a small child
home alone and the child gets
hurt.
Civil and criminal liability
 Civil
negligence - When a person
does not exercise due carefulness
in their responsibilities, for
example when an employee
washes the floor and does not put
up a sign to warn customers to be
careful.
Civil and criminal liability
A strict liability does not take into
account whether an individual or
company was negligent or not. If the
defendant's actions caused damage
of some kind, they are considered to
be liable. Strict liability torts occur
even when the act was out of the
defendant's control.
Civil and criminal liability
 The categories of strict liabilities
include:
 Animals - If an animal owned by

the defendant gets out of the

house and bites someone while
the owner is away, the owner will
be held liable
Civil and criminal liability
 Dangerous Acts - firing a gun at a
target and hitting someone else by
mistake.

 Product liability - Suppliers are

entirely responsible for the
products that they sell to the
public
Civil and criminal liability
 Criminal Liability means you may be
held legally responsible for breaking the
law. This can be potential or actual
responsibility—meaning that you
actually committed the crime, or that
you are simply suspected of committing
it. If the liability is proven in court, you
will be held responsible for the crime
and sentenced accordingly.
Source of law

 The common law: the part of

English law that is derived from
custom and judicial standards, the
United States, and other countries
colonized by England. 
 Equity law is derived from old

English common law.
Source of law
 Equity law came in response to
the rigid procedures of England’s
legal courts. Frustrated plaintiffs
turned to the King when they
could not get the outcome needed
to continue living. The King then
formed the Court of Chancery to
deal with the law of Equity
Source of law
 Legislation is
the prime source of
law and consists of the
declaration of legal rules by a
skilled authority. Legislation can
have many purposes, some of
which include:
Source of law
 to regulate, to authorize, to
enable, to forbid, to permit, to
grant, to declare or to restrict. A
parliamentary legislature frames
new laws, such as Acts of
Parliament, and amends or
cancels old laws.
Source of law
 Most legislatures have their powers
restricted by the nation's Constitution,
 1995 constitution: The Constitution of

Uganda is the supreme law of Uganda.

The fourth and current constitution was
publicized on 8 October 1995. It allows
a republican form of government with a
powerful president.
 THANKS
For your attention