Business Law

LECTURE # 1
What is an organization?
Deliberate structure of people to achieve some
goals.

Business: Transactions of trade for profit…

 Three types of organizations
(ownership)
Sole proprietorship (unlimited liability)
Partnership (two or more owners)….. (*unlimited liability)

Corporations (limited liability).

Micro funding:
Rs. 10,000,000
5 partners ….each will contribute Rs. 2,000,000
1000 people (owners) …each will contribute Rs. 10,000
10000 people (owners)….. Each will contribute Rs. 1,000
Micro tasking
Instead a lot of tasks are being done by one or few people, a lot of
people divide the task and complete it quicker. Everyone gets a small
portion and a large task can be completed.
 ion
ate ce: sit
or an Po
orp ern ral Ownership
C ov ctu
G tru Corporate
S Governance
BoDs
BoTs

Management
C-suite or Executive-Level, CEO, CFO, CHRO

MIDDLE LEVEL MANAGER

LOWER-LEVEL MANAGER

NON- MANAGERIAL EMPLOYEES

LAW
Law and its kinds.
Law

Uniformity of fixedness of behavior.

The word is taken from the word “LAG”, which means something fixed
or unchanging.
Law in different sciences.
IN PHYSICAL SCIENCES:

Something fixed or unchanging (behavior).

Law of gravity, law of motion.

IN THE SOCIAL SCIENCES:

1. fixed or uniformity of things (demand and supply).
2. a rule that guides the behavior.
Definition of law

Law is a command issued by a superior to an inferior.

General rule of action.
Body of principles recognized and applied by the state in the administration of
justice.

Positive law is the term generally used to describe man-made laws which
oblige or specify an action.
It also describes the establishment of specific rights for an individual or group.
 Six characteristics of law
1. Uniformity

2. Universality

3. Externality

4. Content

5. Formulation

6. Sanction
Uniformity
Law is made for everyone
Law is a general rule of human conduct.

It means that people will always act in a way and will refrain from some
behaviors.

So we can say that law is a statement of do’s and don'ts.

Universality
Law is applicable to the whole civic community.

It is meant for all the individuals living in the state.

No man whatsoever can claim exception from the obedience of law.

The principle of equality before the law.

Externality
Law is only for external acts.

It is not for inner thoughts and intentions.

The state or a law cannot enforce intentions or thoughts.

The law cannot enforce honest thoughts in minds of people.

Content
The laws define the relation, association, rights or duties among
individuals or the groups.
Formulation
Laws are prepared according to some formula or a procedure by the
state or the legislative organ.

A mare custom cannot be a law unless it is formulated by the state or

the authority.

LAW MAKING IN PAKISTAN

Sanction
The threat of punishment and the reward for good is called the
sanction.

The state enforce the law by force.

The punishment can be given in the form of fine, confiscation of

property etc.
Sources of law
Custom or usage (cyber laws)

Religion (Islamic law, Quran, Hadood Laws)

Judicial decisions (Precedents)

Scientific commentaries (Email).

Equity (justice, Above Law)

Legislation (Law making process of a state).