Sources of Business law

1. Legislation 

The legislation is an important source of business law. The parliament makes laws regarding the business are the sources of business law. It comprises the law of contract, law of company, law of arbitration, law of agency, etc. The law made by the parliament is coercive in nature and it must be followed by all the stakeholders of the business transaction. Principally it is the main body to make the laws. 

2. Custom 

Many customary practices are still practiced in the business world and those customs are also the law in itself. Before legislation or formal law, the custom used to regulate the behavior of the business person. The court also uses the custom while deciding the case. Thus, if any custom is related to the business world then that is also the source of business law. Like the Barter system. 

3. Precedent 

Any decision (where the apex court has propounded the principle) made by the apex court of the country regarding the business is also the sources of business law. Those decisions are binding to the lower court and apex court itself. Whenever such kind of case comes to the court again, they use the same principle and decide the case. Thus, it is also the source of business law. E.g. Tirtha Raj Kumari Rana V. Ram Shankher Shrestha NKP 2040 page 239. Where the court decides the Bainapatta is also the contract. 

4. Convention 

Many international conventions regarding the business have been adopted and that are binding to the state if the state has ratified it. Since it is binding to the state or it is treated equally as the domestic legislation. Thus the international conventions are also the sources of law and courts also use this while deciding the case. The domestic law also drafted taking the help of those conventions. 

5. Writing of experts 

The writing of experts, professional on business helps to develop the business law, there in-depth study and analysis could help to define and develop the law. Thus, in business law, it is also taken as a source of law. 

6. Determination of international organization 

7. Morality justice and good conscience

8. Law of other countries