Introduction to Business Law

Meaning and Nature of Law

An ancient time people were free. They ruled by themselves. When people lived with group then they made rule to manage their behavior and conduct. Then after progressively they became ruler and ruled. Senior person of the group might be setup the rule and regulation at earlier time. The society gradually developed and changed. In the changing context rule and regulation also be changed. In course of time various laws were enacted and amended. All activities of natural persons as well as artificial persons are regulated and guided by laws. Law is a official mechanism of social control. By changing nature of law there is not universal definition of law. It depends on the contexts and perceptions.

In general, the term 'law' means a set of rules. Those rules are made by the establishments. Public laws are made and implemented by state authority. But private laws are imposed by the party in according to existing laws.

Law is an English word derived from the Stoic term 'Lag'. It means Stable and universal. In general sense, law means the command of the sovereign power to manage and regulate the external human doings. Law is a general term and has contextual sense. It is used in different places within different senses and names. Still, it is impossible to define it in a single term. Many writings have been created, many books have been written by many writers on this topic. However, it has not unanimous definition.

Here is better to cite an expression made by means of Lord Lloyd, who says "Since much juristic ink has flowed in an endeavor to provide a universally acceptable definition of law, but with little sign of attaining the objective".

Definition of Law

John Austin says: A law is a rule of conduct imposed and enforced by the sovereign.

According to Salmond: Law is the body of principles recognized and applied by the state of administration of Justice.

According to Justice Holms: Law is that what Justice says in his decision.

According to Roscoe Pound: Law is the body of principles, recognized or enforced by public and regular tribunals in the administration of Justice.

Lawrence, Robert and Peter State that: The law refers to the body of philosophy, principles, standards and rules which the Courts apply in deciding cases brought before them.

On the basis of above said several definitions, it can be said the term law cannot be defined unanimously. Some Scholars have defined law in the slight sense and some have defined in broader sense. It is impossible to formulate commonly accepted single definition of law because there are several schools of thought concerning to it. Eminent Jurist H.L.A Hart also accepts this fact that the definition of law is very difficult task.

At the Summing, up, it can be said that to define the term of law is very difficult task. Besides this, many eminent scholars have made various efforts. Comparatively a definition given by Black Stone is wider than others; who affirms that "Law in its most general and comprehensive sense signifies a rule of action, and is applied indiscriminately to all kinds of action, whether animate or inanimate, rational or irrational".

In conclusion, it can be said that the essence and core of all definitions is alike. Law is a set of rules and principles made by sovereign power through legitimate process to control or regulate the society for justice, peaceful living and social security.

Origin and Nature of Law

Law is inseparable portion of society. It is the standard to maintain the relation between the society and its members. In the absence of law, society becomes destroyed and creates the situations of disorder, painfulness and anarchy.

The nature of law denotes its inseparable and inherent qualities. It can be to fulfill the needs of contemporary society. The need of society is determined by its associates and they make law to fulfill their requirement. For this purpose law can play significant role to regulate, control and provide guidance to the society. There are several views on law as mentioned in the various definitions and schools of thought. Every School of thought has accepted the law as their specific understanding and defines it in different ways. Similarly, the various definitions also have not prescribed the same nature of law. According to the several schools of thought and definition; the nature of law can be found as follows.

• Law is made and managed by the competent authority which is known as sovereignty.
• Law cannot avoid the principles of natural justice. It should be based on reason and rationality.
• It is the regulation of conduct of the culture. It is based on common interest of the society and it tries to maintain the balance of interest for social solidarity and harmony.
• It has uniformity in action.
• It is the most powerful in the world. Law is more powerful than the lawmakers.
• It is rigid and equally enforceable to all persons in the society. No one can escape from its coverage.
• Law and Justice are interrelated.
• Law is administered by the court.
• It is changeable with the pace (speed) of time and on the basis of common need.
• It is backed by sanction of painful consequences in case of violation.
• In the strict sense it is free from the extra legal phenomena like morality, religious conviction etc.

IN Karishma Impex vs. National Trading Limited, S.C. held that, 'the parties to the contract can create mutual obligation by agreeing upon the terms and condition as per their need which should be within the boundary of the act and such type of contractual rights are changed from constitutional and legal rights.' (Nepal Law Journal, 2048,p. 891)1

Purpose of Law

The purpose of law is concerning to meet or fulfill the certain objectives, which are as follows:

• To maintain the peace and security in society.
• To maintain the social and political stability in the society.

Karishma Impex vs. National Trading Limited

• To maintain the social solidarity and harmony in the society.
• To contribute for strengthening the public welfare, national economy and individual and commercial interest.
• To prohibit criminal activities and harmful human conduct in society.
• To contribute to make developed, prosperous and civilized country in the international community.