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Legal Environment of Business

P. GURU PRASAD
FACULTY
INC GUNTUR
LEGAL ENVIRONMENT OF
BUSINESS
 Law is an instrument of social justice
of the state that seeks to provide justice,
stability and security in the
society.

 It assures uniform application of the laws


by regulating the behavior and interactions
of individuals against each other.
LEGAL ENVIRONMENT OF
BUSINESS
 Law is the command of the
sovereign.. and it’s body of rules
recognized and enforced by courts of
law. . Law is a rule relating to the
actions of human beings. .
Purpose of Law

 To maintain status quo in


society ensuring stability and
security of social order, enable
individuals , maximum of freedom to
assert themselves and determine the
sphere within which the existence
and activity of each individual will
be secure and free
Advantages of Law
 The principle of law provide
uniformity and certainty to the
administration of justice

The existence of fixed principles of


law avoids the dangers of arbitrary,
biased and dishonest decisions

The fixed principles of law protect


administrators of justice from the
errors of individual judgment
Sources of Law
 Formal sources- law derives its force and
validity from the time immemorial
 Legal sources- statues , precedents,
legislation
 Historical sources- juristic writings,
literary works, commandments of the god
 Legislations- Parliament, state assemblies
Law of Contracts
 Human beings live together in a
society. A number of relations are
established between different
persons. These relations may be
natural, social or contractual
relations.
 The relationship created by nature
like mother and child, brothers,
sisters are called as natural
relations.
Law of Contracts
 Relations created by the society
between the individuals such as
neighbors, classmates etc are called
as social relations .

 The relations created by


individuals with their own
willingness to do or not to do
something between them is know
as contractual relations.

 A number of legal principles


are framed to regulate these
contractual relations between
individuals.
TORTS
 A TORT IS A FORM OF CIVIL
WRONG.
 Generally, a tortious act is explained in terms of

Malfeasance-misconduct, driving
car with out license
Misfeasance-unlawful manner,
driving car at excessive speed
Nonfeasance-nonperformance of an
act, failure to do duty may cause
injury
General conditions of Liability in Torts
 There must be a wrong committed by a
person.
Wrongful act must result in a legal
damage
A legal remedy in the form of an action
for damages.
Where the remedy of damages is not available or
is only a secondary remedy, then the wrong,
though it is a civil wrong, is not a tort, for ex.. In
public nuisance, the remedy is injunction but not
damages
Legal damage
 1.Infringement of a legal right..
Right in rem.
 2.Presumption of damage or injury in
law, in case an absolute right is violated;
Right in personam
 3.Proof of actual damage suffered, in
case the right infringed is not of absolute
nature; but of a qualified right
(Trespassing)
Legal damage

 Every infringement of the plaintiff’s


right or unauthorized interference
with his property imposes a legal
damage.
Legal MAXIM

1.Ubi jus ibi remedium


 It is the cardinal principle of law that
law will provide remedy for every
injury. It means “where there
is a right , there is a
remedy”. in other words there is
no legal wrong without remedy.
Legal maxim
2. INJURIA SINE DAMNO
 Violation of a legal right without
causing harm, loss or damage to the
plaintiff. This is a tort which is
actionable per se, that is actionable
without proof of any damage or loss.
(preventing from cast his vote) Ashby Vs White
Legal maxim
3.Damnum sine injuria
 This means damage without injury.
In other words, it means the damage
has occurred without a legal injury.
Gloucester Grammar
school case
Financial loss suffered due to
the rival school.
Jai santhoshi ma- religious
feelings
THE CONSTITUTION OF
INDIA Preamble
 WE, THE PEOPLE OF INDIA, having solemnly resolved to
constitute India into a SOVEREIGN SOCIALIST SECULAR
DEMOCRATIC REPUBLIC and to secure to all its citizens:
 JUSTICE, social, economic and political;
 LIBERTY of thought, expression, belief, faith and worship;
 EQUALITY of status and of opportunity;
 and to promote among them all
 FRATERNITY assuring the dignity of the individual and the
unity and integrity of the Nation;
 IN OUR CONSTITUENT ASSEMBLY this twenty-sixth day
of November, 1949, do HEREBY ADOPT, ENACT AND
GIVE TO OURSELVES THIS CONSTITUTION.
THE CONSTITUTION OF
INDIA
 Right to Equality
Right to Freedom
Right against Exploitation
Right to Freedom of Religion
Cultural and Educational Rights
Right to Constitutional Remedies --
1.Habeas Corpus, 2.Mandamus,
3.Prohibition, 4.Quo Warranto and
5.Certiorari,
FUNDAMENTAL DUTIES
Fundamental duties.
 It shall be the duty of every citizen of India—
 (a) to abide by the Constitution and respect its ideals and
institutions, the National Flag and the National Anthem;
 (b) to cherish and follow the noble ideals which inspired
our national struggle for freedom;
 (c) to uphold and protect the sovereignty, unity and
integrity of India;
 (d) to defend the country and render national service
when called upon to do so;
 (e) to promote harmony and the spirit of common
brotherhood amongst all the people of India transcending
religious, linguistic and regional or sectional diversities;
to renounce practices derogatory to the dignity of women;
FUNDAMENTAL DUTIES

 (f) to value and preserve the rich heritage of our composite


culture;
 (g) to protect and improve the natural environment
including forests, lakes, rivers and wild life, and to have
compassion for living creatures;
 (h) to develop the scientific temper, humanism and the
spirit of inquiry and reform;
 (i) to safeguard public property and to abjure violence;
 (j) to strive towards excellence in all spheres of individual
and collective activity so that the nation constantly rises to
higher levels of Endeavour and achievement.
National law

 National law is the law of the land. The


constitution of India is the supreme law of
the nation. It provides the rights, duties, and
the liberties of the citizens. The laws made
by the state exercising their legislative
powers under the constitution have to be in
consonance with those of the supreme law
International law

 While the national law is the law of a nation


,also known as municipal law, International
law is the law of nations. Where as
International law is the body of rules which
are legally binding on states in their
intercourse with each other. International
law is considered to be a weak law because
it is not founded on the sovereign authority
The need for International law
 International law has witnessed a great
impetus in the present scenario than
ever before.1.Human rights and their
violation2.filing of pleadings, adducing
evidence, oral arguments before
International court of justice, Hague (The
de facto (de jure) capital of the Netherlands) 3.contracts
entered by transnational companies,
Intellectual property rights,4. issues like
nuclear deals, poverty, maritime, air,
space laws, refugees problem, border
disputes, bilateral agreements,
extradition treaties, UNO, Amnesty
international, UNESCO,WTO,W.B,IMF,
Mercantile law
 Merchants have their separate courts called –
courts of piepoudrous (courts of Speedy
justice) and the courts were incident to fairs and
market places.
The common law courts in England envying the
jurisdiction exercised by these non-official courts,
grappled it.
The source of mercantile law is LEX
MERCATORIA, (an unwritten law) consisted of
only the customs and usages or practices of the
trade
Justice delivery system in
India
 Supreme court
High court
Subordinate courts-----
 Civil courts-Metropolitan, City civil
courts, Court of small causes

 Criminal courts-District, Sessions,


Magistrate courts
Justice delivery system in
India
 Tribunals
Central administrative Tribunals
Industrial Tribunals
Labor Tribunals.
Consumer dispute redressal
Tribunals
Civil Law

 It governs the litigation arising


between individuals over properties,
monetary affairs, partnership,
accident cases etc,
The Nature of penalty is civil in
nature. Liability to compensate the
affected party will be in the monetary
form
Criminal law
 In criminal cases, the government
for violation or injury to public rights
files suits. The State takes
initiative to file the case. Criminal
law governs cases arising out of theft
,murder, cheating etc., The nature of
punishment is monetary and
imprisonment, and capital
punishment in rare cases.
THANKING YOU
Prof. P. GURU PRASAD
M.Com, (University of Madras)
L .L. B., (Acharya Nagarjuna University)
M. Phil., (Annamalai University)
P. G. Diploma in Foreign Trade Management,
(SICC)
Senior Finance, law & Accounting Faculty
Center Academic Coordinator
INC - GUNTUR
pgp4149@gmail.com