BUSINESS REGULATORY FRAMEWORK
MODULE 1 – Introduction to Mercantile Law
MODULE 2 – Special Contract I
MODULE 3 – Special Contract II
MODULE 4 – Law of Agency
MODULE 5 – Sales of Goods Act, 1930
LAW
■ Law means a ‘set of rules’ of conduct recognized and enforced by the State to
control and regulate the conduct of people, to protect their property and
contractual rights with a view to securing justice, peaceful living and social
security.
■ According to Salmond, “ Law is the body of principles recognized and applied
by the State in the administration of justice.”
BRANCHES/CLASSIFICATION OF LAW
LAW
International Law Municipal Law
Public International Private International Public Law Private Law
Law Law
Constitutional
Personal Law
Law
Administrative
Property Law
Law
Criminal Law Law of obligation
International Law:-
■ International law is the legal process concerned with the relations
among nations and are binding upon each other through reciprocity.
a) Public law – This branch of law relates to the body of rules and
regulations which governs the relationship between nations.
b) Private law – A private international law is that part of law of the state
which deals with cases having a foreign element. It relates to the rights
of private citizens of different countries.
Municipal law:-
■ Municipal law is the national, domestic or internal law of a sovereign state. They regulate the
relationship between the state and its citizens and determines the relationship among citizens.
a) Municipal Public Law:- It regulates the relationship between the state and its subjects and
also provides the structure and functioning of the organs of the state.
There are three types of laws that fall into public law category:
(i) constitutional law, (ii) administrative law and (iii) criminal law.
Constitutional law:- considered to be the basic as well as supreme law of the country. It
provides the structure of the government. In India the fundamental rights are granted and
protected under the constitution.
Administrative law:- deals with the powers and functions of administrative authorities
government departments, authorities, bodies, etc.
Criminal law: Criminal law generally deals with acts which are prohibited by law and
defines the prohibited act as an offence. It also prescribe punishment for criminal offences.
b) Municipal Private Law: It is concerned with the smooth running of a society and covers
areas in every day life such as work, business dealing, employment, education, etc. Eg. contract
law, property law, family law, labour law, commercial law, etc.
Personal law: Personal law is a part of law that deals with law relating to marriage,
divorce and succession. These laws are based on religion, ritual and customs.
Property law (civil law system): Property law deals with the ownership of movable
and immovable properties. For example, The Transfer of Property Act, 1882, Sale of
Goods Act, 1930 etc.
Law of obligation (Law of contract/tort): This branch of law pertain to an area
where a person is required to do some thing because of his promise, contract or law. It
puts an obligation or the person to perform certain actions which generally arise as a
consequence of an enforceable promise or agreement. If some a one violate his
promise, that promise may be enforced in a Court of Law.
Mercantile Law / Business Law / Commercial Law
■ Mercantile law is one of the branches of civil law which are connected with trade,
industry and commerce. It deals with contractual situations and the rights and
obligations arising out of mercantile transaction between mercantile persons. A
mercantile person may be a single individual, a partnership or a joint stock company. It
is an ever changing branch of law with changing circumstances of trade and commerce.
■ Mercantile law may be defined as "that branch of law which comprises laws
concerning trade, industry and commerce".
Importance / Objectives of Mercantile Law
■ Brings definiteness in commercial dealings
■ Determines the validity of a contract
■ Deals with different types of contracts
■ Serves as a vehicle of social change
■ Establishes socio-economic justice
■ Helps to maintain order
■ Helps to regulate the activities of individuals
Sources of Mercantile or Business Law
■ The English Mercantile Law
■ Indian Statute Law
■ Judicial Decisions
■ Customs and usage
Other Business Regulations
There are large number of other laws, regulations and rules which have been developed due to
necessity. Some of them are:
The Companies Act, 2013
The Partnership Act, 1932
The Information Technology Act, 2000
The Foreign Exchange Management Act, 1999
The Competition Act, 2002
The Consumer Protection Act,1986
The Factories Act, 1948
The Employees Compensation Act, 1923
Right to Information Act, 2005