‘Business Law’ is the combination of the terms ‘Business’ & ‘ Law’.
‘Business’ refers to all human or economic activity that intends to earn property or money by producing, buying or selling the goods or services. Similarly, Law refers to a set of rules and principles made and applied by supreme authority or state to regulate external behavior, action or conduct of person, society or organization in order to maintain peace, order and security in the country. Ultimate goal of law is to provide justice which is backed by sanction.
Hence, Business Law may be defined as that part of law which is connected with Business and comprises the laws related to Trade, Industries and Commerce. It deals with right and obligation of Businessman or Business Organizations in relation to the business transitions. Business law manages the provisions related to formation, operation and dissolution of different types of Business organizations like Sole Trading Company, Partnership Forms, Corporations, etc to carry on business without fear and disturbance. It encourages business community by providing facilities such as security, legitimacy, control, incentives etc. Business law is made for the benefit and welfare of the entire business person. Primary objective of Business law is to protect business and businessman & maintain peace, certainty and self confidence in business domain. It is also known as Commercial or Mercantile Law.
Some of the definitions made by prominent Scholars is help to understand the meaning of Business Law:
M.C. Sukla: Mercantile Law may define as that branch of law which deals with the rights and obligations of Mercantile Person arising out of mercantile transition in respect of mercantile property.
M.C. Kuchhal: Mercantile law may be defined as that branch of law which comprises laws concerning trade, industries and commerce.
A.K Sundaran: Business law provides legitimacy, security, control and incentives to business activities. It also protects rights and interest of consumers of labor, business and society.
N.D. Kapoor: Mercantile law is also used to denote the aggregate body of those legal rules which are connected with trade, industries and commerce.
In conclusion, we can defined the Business Law as the part of Civil Law which deals with all the laws connected with business activities and defines rights and obligation of business persons and business firms/organizations arising from business transactions. It helps the business community to carry on its transaction without any fear and hesitations with certainty and confidence.
There is no watertight demarcation between Business Law and other branches of law in terms of application and procedure. Business man or business form who commits business crime also treated as other criminals.
Examples of Business Law:
- Law of Contract
- Sale of Goods Act
- Agency Act
- Bailment and Pledge Act
- Company Act