Introduction to Business Law
There
are different types of activity in society. Business is also a part of social
activity, regulated by the law. Business refers to the economic activities in
which goods and services are supplied in exchange for some payment. It includes
buying and selling, manufacturing products, extracting natural resources.
Business law is the law concerned with business activity. Business law is an
aggregate of those rules, which are connected with trade, commerce, and
industry. It is also known as commercial or mercantile law. It is the law that
provides the different provisions to the commercial community and regulates
their activities relating to trade and commerce. Which includes the law relating
to a contract, sale of goods, agency, industry, guarantee, insurance, and
banking, arbitration, foreign investment and technology transfer, etc. Business
law is not a separate discipline, it is a part of civil law, which deals with
the right and obligation of business firms that arises from there business
activity. There are different laws in which the significant provisions are made
to regulate the business-related activities, and these laws are known as
business law.
According
to N.D Kapoor: " Mercantile law is also used to denote the aggregate body
of those legal rules which are connected with trade, industry, and
commerce."
Features of Business Law
i)
Regulates industry, trade, and commerce.
ii)
Regulates every business activity of the business community.
iii)
It has no watertight demarcation with the other branches of law.
iv)
Promotes the rights and interests of the business community.
v)
this is the most important means to create a positive environment for the
prosperity of business.
With
the increasing complexities and technologies of the modern business, the scope
of business law is automatically extended.
Importance of Business Law:
Business law leads to the prosperity of a country. It regulates and affect the business since before the establishment of a business firm, while conducting the business and to its final stage. The role of business law is vital in the business sector, but it is guided by the economic policy of the state. A business person must know all the concerned laws. Such laws play a vital role in the formation and commencement, running, adapting, establishing, giving dynamism and expansion of the business as well as fulfilling business goals and maintaining social responsibilities. The importance of business law can be viewed on the following grounds:
a) Protection
of the economic right
b)
Regulation and Systematization of business
c)
Commencement and development of business
d)
Enforcement of Business Contract
e)
Delivery of Justice
Reviewed by Bijay Munikar
on
September 23, 2020
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