Business & Labour LawRecommended Text Box

Business Law by Khalid Mehmood Cheema

Course Assessment:Quizzes: Minimum 5 quizzes 10 MarksMid Term 30 pointsFinal 40 pointsProject 20 Marks

Nisar A. Mujahid Advocate Supreme Court of Pakistan

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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 wrongs

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 an act prohibited by law• Criminal case is prosecuted by is usually

the state, but can be through private complain. • Person found Guilty is punished with fine or

imprisonment or both.• Burden of proof, beyond the shadow of doubt

lies on the state• Prosecution is impleaded as “The state” or

the complainant’s name.

Law : An Introduction

Criminal Law• Sharia law contains the concept of:-

“QISAS” (RETRIBUTION), In certain cases, gives legal right to

inflict on the wrongdoer same hurt as he perpetrated on Person the victim, or get

“DIYAT” (COMPENSATION), instead.• Western law focus on punishment,

where victims have to proceed under 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 determine the rights and impose a settlement on matters either by financial compensation in the form

of damages injunctions other orders

• There is no concept of corpus 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 “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 person’s 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

Distinctioncriminal case : prosecution by the state for the on between Criminal and Civil Cases• ffence 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 Sources

Legal Sources

Legislation

Precedent

Customs

Agreement

Historical Sources

Common Law Equity

Formal Sources

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 : “A” transferred

property to the legal ownership of “B” to pay the income of the property to “C” (in modern law “B” is

trustee for “C”), the common law simply recognized that “B” was

the owner of the property and gave no recognition to “B’s” obligation to

“C”. Equity however, recognize the “B’s” obligation to “C”.

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.

Law : An Introduction

Relationship between the common law & Equity

Equity recognizes common law, as it always did; it sometimes offer an

alternate solution.

The courts have discretion as to whether or not they will grant an equitable remedy in lieu of a common law one.