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Business & Labour Law

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Business Law by Khalid Mehmood Cheema

Course Assessment:
Quizzes: Minimum 5 quizzes 10 Marks
Mid Term 25 Marks
Final 40 Marks
Project 20 Marks
Presentation 05 Marks
Syed Salman Ahmed
sirsalmanahmed@yahoo.com
0300-3610026
Yahoo Group Name : bllfall15
Group E-Mail : bllfall15@yahoogroups.com

MBA (Marketing & Finance) (Silver Medal) IBA Karachi


MEM (Quality Management) (Silver Medal) NED UET Karachi
MBA (MIS) (Silver Medal) IBA Karachi
MAS (HRM) UoK Karachi
MA (Economics) UoK Karachi
PGD (CIS) (Gold Medal) UoK Karachi
B E (Aerospace) NED UET Karachi
LLB UoK Karachi
Teaching Experience : 26 Years
Law : An Introduction

It refers to a rule of conduct or a procedure


established by custom, agreement or an
authority for :-

(a) Protecting the rights and property


of members of a society.
(b) Enforcing their mutual contracts
(c) Holding them liable for their torts
and punishing for their crimes.
Law : An Introduction

The term liability has two aspects:-

(a) Criminal liability


(b) Civil liability

Distinction between criminal and civil liability is


central to the legal system and to the way in
which court system is structured.

Objectives of each category of law are different


Law : An Introduction

Criminal Law
Crime is conduct prohibited by law
In criminal case, state is usually the
prosecutor
Guilty persons are punished by fines or
imprisonment
Burden of proof beyond reasonable doubt
is on state
Prosecution is brought in the name of
state
Law : An Introduction

Criminal Law
Sharia law contains concept of Qisas, or
retribution, which in certain cases, gives
legal right to inflict on the wrongdoer
same hurt as he perpetrated on the victim,
or to accept Diyat, compensation,
instead.
Western law focus on punishment, where
victims have to undertake civil law action
for compensation.
Law : An Introduction

Civil Law

Civil law exists to regulate disputes over


the rights and obligations of persons
dealing with each other.
State has no direct role in dispute over, for
instance, a breach of contract.
It is up to the persons involved to settle
the matter in the courts if they so wish.
Law : An Introduction

Civil Law
Purpose of this course of action is
generally to impose a settlement on matters
either by
financial compensation in the form
of damages
injunctions
other orders
There is no concept of punishment.
Law : An Introduction

Civil Law
Case must be proven on the Balance of
Probability.
Absolute proof or proof beyond doubt is
not required.
Only more probability in favor of one
party over other has to be convinced to
the court.
Burden of proof may shift between the
two parties.
Law : An Introduction

Civil Law

Terminology as compared to criminal


cases is different. Here it is called Plaintiff
sues the Defendant.
Most important areas of civil liability
include law of contract and law of
tort.
Law : An Introduction

Contract

It is a relationship between two parties.


It is a legally binding agreement, breach of
which infringes one persons legal right
given by the contract to have it
performed.
Law : An Introduction

Tort

It is a wrong committed by one person


against another, infringing the general
rights given to him by the law.
No need to have any pre-existing
relationship between plaintiff and
defendant before the tort was committed.
Most significant tort is Tort of
Defamation
Law : An Introduction

Distinction between Criminal and Civil Cases


It is not an act or event which creates the
distinction, but the legal consequences of
the act or event.
A single event might give rise to criminal
and civil proceedings simultaneously.
Example : A broken leg caused to a
pedestrian by a drunken driver is a single
event which may give rise to a criminal as
well as a civil case.
Law : An Introduction

Distinction between Criminal and Civil Cases


criminal case : prosecution by the state for
the offence of driving with alcohol.
civil case : pedestrian sues for
compensation for pain and suffering
caused by the wrong
Burden of proof in rules of evidence are
very strict in case of criminal case for
example a confession would be carefully
examined for traces of pressure on
accused.
Law : An Introduction

Distinction between Criminal and Civil Cases

Admission in a civil court will not be


subject to strict scrutiny of the standard of
criminal case.
Law : An Introduction

Sources of Law

The law is not static but changes and


develops, reflecting the values and
institutions of each era.
Main purpose and effect of law is to
define and safeguard rights of property
and to uphold public order.
Law : An Introduction

Sources of
Law

Material Formal
Sources Sources

Legal Historical
Sources Sources

Common
Legislation Precedent Customs Agreement Equity
Law
Law : An Introduction

Formal Sources of Law

It is the will of the state as manifested in


statutes or decisions of the courts.

Material Sources of Law

These sources are those from which it


derived the matter. They are of two kinds;
legal and historical sources.
Law : An Introduction

Historical Sources of Law

There are two kinds; Common law and


Equity.

Common Law

King Norman of England in 1066


developed system of common law.
Law : An Introduction

Common Law

Till 1285, only writs against established


forms only. After, 1285 slight relaxation
given that similar new forms of writs can
be issued provided they are similar to the
existing forms.
System was rigid and proved to be
inadequate means of providing justice.
Law : An Introduction

Equity

Where people failed to get remedy in


common law court, petitioned to King for
relief by direct royal intervention. This
created concept of equity.
Equity was based on fair dealings between
two individuals as equals, however, it was
not a complete alternative of common
law.
Law : An Introduction

Equity

Equity was a method of adding and


improving common law.
Interaction between common law and
equity brought three major changes.

New Rights: Equity recognized and


protected rights for which common law
gave no safeguards.
Law : An Introduction

Equity
For example : Salman transferred
property to the legal ownership of
Tahir to pay the income of the property
to Badar (in modern law Tahir is
trustee for Badar), the common law
simply recognized that Tahir was the
owner of the property and gave no
recognition to Tahirs obligation to
Badar. Equity however, recognize the
Tahirs obligation to Badar.
Law : An Introduction

Equity
Better Procedure : Equity could be
more effective than common law in
bringing a disputed matter to decision.
Better Remedies : Alternate remedies
other than monetary compensation for
the successful plaintiff was able to be
ordered by Equity, such as:-
(i) to do what has agreed to do
(specific performance)
Law : An Introduction

Equity
(ii) to abstain from wrongdoing
(injunction)
(iii) to alter a document so that it
reflects the parties true
intentions (rectifications)
(iv) to restore the pre-contract status
quo (rescission)
Law : An Introduction

Relationship between the common law & Equity

Now the courts of common law and


equity have been amalgamated,
however, both remain distinct.
Where common law applies, it tends to
be automatic in its effect.
Equity recognizes common law, as it
always did; it sometimes offer an
alternate solution.
Law : An Introduction

Relationship between the common law & Equity

The courts have discretion as to


whether or not they will grant an
equitable remedy in lieu of a common
law one.

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