Legal Environment Of Business

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 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

 To

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 [email protected]