A
source means an origin or resources or cause or place from where law emanates.
The term source of Nepalese business law denotes two meanings. Firstly the place
or point from where the law begins and secondly the place from where the rules
of business activities get legal authority. The main sources of business law
are discussed below:
a) Custom and Usage:
The
custom is known as a particular way of life or behavior. If such behavior is
followed continuously by the people in the society, it becomes a customs or
usages which are important sources of law. This type of custom should not
oppose statutory law, mortality, and public welfare. If there is no legislation,
no precedents the matter is to be decided by the custom or usage of that
particular.
b) Statutes/ Legislation:
The
legislative law comes from parliament or law-making body of the nation. This
type of law is the outcome of the demand of people and the needs of the time.
It is made after fulfilling a series of discussions by lawmakers. Nowadays most
business activities are regulated by the law made by parliament.
c) Judicial Decision:
Judicial
decisions are known as precedent. Precedent is a judicial decision which
contains in itself a principle. In other words, it is the earlier decision of the
supreme court which is taken as a rule while deciding the later cases. Where
there is no law to deal with the problems in such cases the court can make
decisions in the light of justice and equity such decisions are treated as law
for that matter. It is one of the major sources of modern business law.
d) English Mercantile law:
Business
law was developed in England. It is the pioneer of business law in the world.
Nepal is conjoined influenced by the British rule since the year.
e) Professional Opinion of experts:
Lawyers
and critics may play a significant role in creating a good legal environment.
The opinion and explanation made by such professionals may give proper
instruction and a better contribution to the development of law.
f) Business Agreement, Conventions:
Conventional
law refers to any rule or system of rule agreed upon by the parties to regulate
their business conduct. International business organizations are more active in
national, region, and world business nowadays. Examples: ( WTO, SAFTA). And the
bilateral agreement between the nations and conventions of business communities
are the main sources of national and international business law.
Legal Environment
The
legal environment of business refers to the aggregate of surrounding connected
with the law that influences the business activities and business firms. It
refers to the aggregate of all types of law, regulation. Acts and precedents
intended to encourage, protect, guide the business activities. Such law is made
and enforced by the state for the prosperity of every aspect of the business.
According
to Prem R Panta " The legal environment refers to the framework of laws,
regulation are court decision, intended to encourage, guide and control
business activities.“
Reviewed by Bijay Munikar
on
September 23, 2020
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