GREETINGS
MY DEAR YOUNG FRIENDS
BOOKS RECOMMENDED
Text Book:
Mercantile Law-M.C. Kuchhal - Vikas Publication
Reference books:
1. Business Law, S.S.Gulshan, Excel Books.
2. Business and corporate Laws-C.L. Bansal-Excel
Books.
3. Elements of Mercantile Law-N.D. Kapoor.
4. Business Law for Managers-Prof. P.K Goel—
Biztantra Publication
BUSINESS LAW
MODULE-1
TOPICS

Introduction to law - presumption of law.
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Definition and scope of Business law –
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Sources of Business Law:
English Law, Statute Law, Case Law,
Customs & usages.

INTRODUCTION
LAW:
Law is that portion of
established habit
and
thought of mankind
which has gained
distinct and formal recognition
in the shape of uniform rules
backed by the authority and
power of Government.
BRANCHES OF LAW
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INTERNATIONAL LAW
CONSTITUTIONAL LAW
CRIMINAL LAW
CIVIL LAW
BUSINESS LAW OR MERCANTILE LAW
BUSINESS LAW
Meaning:
It is that branch of law
comprising laws concerning
trade, industry and commerce.
Scope of Business Law:
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Contracts
Sale of Goods
Partnership
Companies
Negotiable
Instruments
Insurance
Insolvency
Carriage of Goods
Arbitration
Presumption of Law
Every person is presumed to know the law.
“Ignorantia juris non-excusat”
Ignorance of law is no excuse.
SOURCES OF MERCANTILE LAW
1. English Mercantile Law
2. The Statute Law
3. Judicial decisions or Case Law
4. Customs and Usages
English Mercantile Law
Indian Mercantile Law is built
on the foundation of
English Mercantile Law.
In case of ambiguity,
our courts take recourse to English Law.
The Statute Law

Statute is an Act of Parliament.

Bulk of Indian Business Law is
Statute Law
The Statute Laws:
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The Indian Contact Act, 1872.
The Negotiable Instruments Act, 1881.
The Sale of Goods Act, 1930.
The Indian Partnership Act, 1932.
The Companies Act, 1956.
The Arbitration and Conciliation Act, 1996.
THE INDIAN CONTRACT ACT 1872
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Original Act was comprehensive
General Principles Sec. 1-75
Sale of Goods Sec. 76-123
Indemnity and Guarantee Sec. 124-147
Bailment and Pledge Sec. 148-181
Agency Sec. 182-238
Partnership Sec. 239-266
Sections repealed New Acts enacted
Sections repealed
Replaced by

In 1930 Sec. 76-123
Sale of Goods

Sale of Goods Act,
1930

In 1932 Sec. 239-266
Partnership

Indian Partnership Act,
1932.
JUDICIAL DECISIONS
(CASE LAW)
Binding on all courts having jurisdiction lower to
that of the court which gave the judgment.
Courts with equal jurisdiction – generally take
cognizance of the judgment, though not bound by
it.
In case of ambiguity, when act is silent,
principles of justice, equity and good conscience
are applied.
CUSTOMS & USAGES
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Custom or usage must be widely known,
Certain and reasonable.
Must not be opposed to any legislative enactment.
Where rule of law specially provides that the law
is subject to well recognised custom or usage of
trade, the latter may override the statute law.