Business Law

UNIT 1
 Topics covered
90 minutes 90 minutes Unit
Week 1 Into to law 1 Contract laws
Unit I
Week 2 Contract laws Contract laws
Week 3 Intro to 2 Partnership Act
Unit II
Non-commercial entities 3 LLP
Week 4 4 Companies Act Companies Act 02 Gen
Week 5 Companies Act 5 Negotiable Instruments Act 12 laws – LS
Unit III 05 laws – SS
7 Prevention of Money Laundering Act
Week 6 6 SARFAESI Act
8 Insurance Act
19 laws in total
Week 7 9 Sale of Goods Act Sale of Goods Act
Week 8 11 Income Tax Act Unit IV
10 Intellectual Property Act
12 GST Act

14 Information Technology Act

Week 9 13 Consumer Protection Act
15 Right To Information Act Unit V
Week 10 16 Environment Protection Act 17 Alternate Dispute Resolution

MBA332 UNIT 1A 2
Evaluation scheme
Exam type S/Date Marks Weight WM
1 Assignment #1 23 Jan 20 0.5 10
2 Assignment #2 15 Feb 30 0.5 15
3 MCQ #1 20 0.5 10
4 Assignment #3 8 Mar 40 0.5 20
5 MCQ #2 20 0.5 10
6 Written exam Mar/Apr 40 0.5 20
7 Case study Mar/Apr 10 0.5 05
8 Attendance etc 10
100

MBA332 UNIT 1A 3
Assignment #1
Assignment type Research based assignment
Topic Drafting of an agreement between a manufacturer
and a commission agent for sale of its products
Category Individual
Submission date 23 January 2019
Submission Hard copy
mode
Maximum marks 20
Weightage 10%
Purpose To obtain insight on drafting in areas of Business
Law and present the information in clear, concise,
and coherent manner

1MBA/3Trimester UNIT 1B 4
Unit 1: Topics covered
Unit 1A
Meaning and Introduction to Law

Unit 1B
Indian Contracts Act, 1872

MBA332 UNIT 1A 5
Meaning and
Introduction to
Law
UNIT 1A

MBA332 UNIT 1A 6
Topics covered
Introduction to law

Presumption of law

Definition and scope of Business law

Sources of Business laws

• English Law
• Statute Law
• Case Law
• Customs & usages

MBA332 UNIT 1A 7
What is Law?
Law is that portion of established habit and thought of
mankind which has gained distinct and formal
recognition in the shape of uniform rules backed by the
authority and power of Government
• Law refers to a kind of conduct or a prescribed rule that is enforced
by a controlling authority.
• Law is a rule to live and conduct business is society.
• Law is an instrument devised by society to manage its affairs and
administer justice.

MBA332 UNIT 1A 8
Law in India
The law of land is supreme

• Applies to all, including every citizen, organisation, association, and

corporation formed by citizens
• There is nothing that the law does not cover
• The jury system abolished in India in 1960 after the Nanavati vs State
of Maharashtra case due to fear of influence by media and others

Knowledge of law is a must to make legally right decisions

and run an organisation

MBA332 UNIT 1A 9
Three pillars of governance

Parliament

interprets enacts

Court Government

implements

MBA332 UNIT 1A 10
Presumption of Law

Every person is presumed to

know the law.
“Ignorantia juris non-excusat”
(Ignorance of law is no excuse)

MBA332 UNIT 1A 11
Branches of law
Constitutional law
• e.g.: Constitution of India

Criminal law
• e.g.: Code of Criminal Procedure, 1973

Labour law
• e.g.: Minimum Wages Act, 1948

Business/mercantile law
• e.g.: Indian Contract Act, 1932

Family law
• e.g.: Hindu Succession Act 2005

International law
• e.g.: United Nations Convention on the Law of the Sea

MBA332 UNIT 1A 12
The Constitution of India
1950 (Jan) 2019 (Jan)
# Articles 395 466
# Parts 22 25
# Schedules 8 12
# Appendices 2 5
# Amendments 103
# Bills 124
➢ Constitution of India came into effect on 26 January 1950
➢ It is most lengthiest written constitution in the world

MBA332 UNIT 1A 13
Business law
Business law refers to that branch
of law comprising laws concerning
trade, industry and commerce.
➢ Contract Act ➢ Carriage of Goods Act
➢ Sale of Goods Act ➢ Arbitration Act
➢ Partnership Act ➢ Prevention of Money
➢ Companies Act Laundering Act
➢ Insurance Act ➢ Income Tax Act
➢ Insolvency Act ➢ GST act
➢ Negotiable Instruments Act ➢ Customs Act

MBA332 UNIT 1A 14
 Sources of Mercantile law
English
Mercantile
Laws

Customs Indian
Statutes/
and Mercantile Laws
Usages
laws

Indian Mercantile law is In case of ambiguity, our

Judicial
built on the foundation of decisions courts take recourse to
or Case
English Mercantile law Laws
English law

MBA332 UNIT 1A 15
The Statute/Law

Statute is an Act of Parliament.

• Constitution of India does not use the term statute but

employs the term ‘law’.

Law is defined to include any ordinance, order,

bye-law, rule, regulation, notification etc.
• Bulk of Indian Business law is Statute law

MBA332 UNIT 1A 16
 Construct of an Act
Title of the Act Proviso
• Exception to the section
• Long title (describes the enactment; forms part
• Only embraces the field which is covered by the main
of the Act) provision
• Short title (identifies the enactment; it is a
convenience) Explanation
• Furtherance of what is given in the section itself to explain
Preamble the main purpose of the provisions contained in the section
to harmonise/clear any ambiguities created in the main
• Preface/Objective of introducing the Act section
• Expresses the scope, object and purpose of the Illustration
Act
• Examples which facilitate easy interpretation of the
• Recite the ground and cause making the law provisions of the section. They do not modify the contents
and the evil which is sought to be remedied of the section

Chapter heading Schedules & Appendices

• Forms part of the statute and must be read together
• To help interpret the section • In case of conflict, the enactment shall prevail over the
• Cannot control/override the section schedule

MBA332 UNIT 1A 17
Some terminologies used
Notwithstanding used as non-obstante clause to imply overriding effect on other provisions

means without detriment to any existing right or claim ie not intended to cut
Without prejudice down the generality of the meaning

Subject to gives an over-riding effect to the other provisions rather than itself

Save as otherwise used when one section is superceded by the other section
provided

Provided by the legislature as specific meaning or explanations. Refers to the

Definitions specific enactment to provide proper interpretation besides to shorten the
language

MBA332 UNIT 1A 18
Collaterals
Case laws

(specially if the word has

not been defined in the statute) Notifications/
Dictionary
circulars

Collaterals
Parliament/
legislature Other laws
debates

(if following similar

Memorandum Foreign laws
system of jurisprudence)

MBA332 UNIT 1A 19
Administrative Structure of the
Indian Legal System

MBA332 UNIT 1A 20
Judicial decisions (case law)
Binding on all courts
- having jurisdiction lower to that of the court which gave the
judgment
Courts with equal jurisdiction
- generally take cognizance of the judgment, though not
bound by it
In case of ambiguity and when act is silent
- principles of justice, equity and good conscience are applied

MBA332 UNIT 1A 21
Customs & Usages

Where rule of
law specially
Must not be provides that
opposed to any the law is
Certain and legislative subject to well
reasonable enactment recognized
Custom or custom or
usage must be usage of trade,
widely known the latter may
override the
statute law

MBA332 UNIT 1A 22
MBA332 UNIT 1A 23
The Statute laws
➢ The Indian Contact Act, 1872
➢ The Negotiable Instruments Act, 1881
➢ The Sale of Goods Act, 1930
➢ The Indian Partnership Act, 1932
➢ The Companies Act, 1956
➢ The Arbitration and Conciliation Act, 1996

MBA332 UNIT 1A 24