1. Definition of LawAs defined by Steven J. Skinner and John M.
Lvanncevich. A jurisprudence is a criterion or regulation established by a society to regulate the behaviour of its members. Federal. province. and local authoritiess.
fundamental laws. and treaties all set up Torahs. Laws have a direct and significant impact on how concern houses conduct assorted activities. Law. as it is.
is the bid of the Sovereign. It means. jurisprudence has its beginning in autonomous authorization ; which is accompanied by countenances. and the bid to be a jurisprudence should oblige a class of behavior. Bing a bid the jurisprudence must flux from a determinate individual or group of individuals with the menace of displeasure if it is non obeyed. Thus the term Law is used to denote regulations of behavior emanated from and enforced by the province.The Torahs of a state relate to many topics.
e. g. . heritage and transportation of belongings. relationship between individuals. offense and their penalties. every bit good as affair associating to industry trade and commercialism. The term Business Law is used to regulations and ordinances associating to industry trade and commercialism.
There are several beginnings of jurisprudence. The organic structures of jurisprudence created by Judgess through their tribunal determinations are common Torahs. As a organic structure. the Torahs enacted by the local authoritiess. fundamental laws or pacts are statutory jurisprudence. Furthermore. there are administrative Torahs and judicial Torahs.2.
Assorted classs of Business LawNumerous and several types of Torahs regulate the activities of all concerns and everyone involved in the concern. from proprietor to director to employees. These include –•Tort jurisprudence ( which includes merchandise liability ) .•Laws regulating contractual understandings.•Sales understandings.
•Use of agents.•Property minutess.•Bankruptcy proceedings. and•Negotiable instruments.3. Laws that affect concern in BangladeshIt is of import for all concern proprietors to cognize and understand the Torahs that affect their concerns.
It is every bit of import to follow with those Torahs. Ignorance of the Torahs has ne’er been a valid alibi in any Court of Law. and it ne’er will be. As a concern proprietor. it is owner’s duty to cognize what Torahs affect the concern.
Business Law may be defined as that portion of jurisprudence which regulates the minutess of the mercantile community. The range of commercial jurisprudence is big. It includes the Torahs associating to contract.
partnership. negotiable instruments. sale of goods companies etc. It is noted that there is no fixed line of division between commercial jurisprudence and other subdivisions of jurisprudence.
nor is at that place any struggle or contradiction between them. The jurisprudence of contract. which is a really of import portion of commercial jurisprudence. is applicable non merely to merchandisers and bankers but besides to other individuals.
Commercial jurisprudence trades with merely those parts of jurisprudence which are of particular importance to the mercantile community. The same Torahs are applicable to other citizens under appropriate fortunes.4. The Law of ContractThe Law of Contract trades with understandings which can be enforced through tribunals of jurisprudence. The Law of Contract is the most of import portion of commercial jurisprudence because every commercial dealing starts from an understanding between two or more individuals. An understanding enforceable by jurisprudence is a contract.
Therefore in a contract there must be an understanding and the understanding must be enforceable by jurisprudence. The aim of The Law of Contract is to present determinateness in commercial and other minutess.The contract Act.
1872 covers most of the Torahs of contract. It includes entire 11 chapters with tonss of clauses. An overview of the Torahs has been enclosed in Appendix.
Few of the inside informations of the elements of the Acts of the Apostless are described in the undermentioned page.4. 1 The necessities elements of a ContractAn understanding becomes enforceable by jurisprudence when it fulfills certain conditions. In this context. there are several Torahs which uphold the footings and conditions for legal stairss and guidelines for concern activities. These conditions.
which may be called the Essential Elementss of a Contract. are explained below.1. Offer and CredenceThere must be a lawful offer by one party and a lawful credence of the offer by other party or parties. An ”offer” involves the devising of a ”proposal” . When the individual to whom the proposal is made signifies is assent thereto. the proposal is said to be accepted.2.
Purpose to make Legal RelationshipThere must be an purpose ( among parties ) that the understanding shall ensue in or make legal dealingss. An understanding to dine at a friend’s house is non an understanding intended to make legal dealingss and is non a contract.3. Lawful ConsiderationCapable to certain exclusions. an understanding is lawfully enforceable merely when each of the parties to it gives something and gets something. An understanding to make something for nil is normally non enforceable by jurisprudence. The something given or obtained is called consideration.4.
Capacity of partiesThe parties to an understanding must be lawfully capable of come ining into an understanding ; otherwise it can non be forced by a tribunal of jurisprudence. Want of capacity arises from minority. madness. amentia. inebriation. and similar other factors.
If any of theparties to the understanding suffers from any such disablement. the understanding is non enforceable by jurisprudence. except in some particularinstances.5. Free ConsentIn order to be enforceable. an understanding must be based on the free consent of all parties.
There is absence of echt consent if the understanding is induced by coercion. undue influence. error. deceit. and fraud. A individual guilty of coercion. undue influence etc.
can non implement it. capable to regulations laid down in the Act.6. Legality of the ObjectThe object for which the understanding has been entered into must non be illegal. or immoral or opposed to public policy.
7. CertaintyThe understanding must non be obscure. It must be possible to determine the significance of the understanding. for otherwise it can non be enforced.8. Possibility of PerformanceThe understanding must be capable of being performed. A promise to make an impossible thing can non be forced.
5. The Law of AgencyAn ‘Agent’ is a individual employed to make any act for another or to stand for another in covering with 3rd individuals. The individual for whom such act is done.
or who is so delineated. is called the Principal. The following tabular array depicts few of the Torahs related to Agency. The Contract Act. 1872185. No consideration is necessary to make an bureau.
The Contract Act. 1872190. An agent can non legitimately employ another to execute Acts of the Apostless which he has expressly or impliedly undertaken to execute personally. unless by the ordinary usage of trade a sub-agent may. or. from the nature of the bureau.
a sub-agent must. be employed. The Contract Act. 1872191. A “sub-agent” is a individual employed by.
and moving under the control of. the original agent in the concern of the bureau. The Contract Act. 1872194.
Where an agent. keeping an express or implied authorization to call another individual to move for the principal in the concern of the bureau. has named another individual consequently. such individual is non a sub-agent.
but an agent of the principal for such portion of the concern of the bureau as is entrusted to him. The Contract Act. 1872201. An bureau is terminated by the principal revoking his authorization ; or by the agent abdicating the concern of the bureau ; or by the concern of the bureau being completed ; or by either the principal or agent death or going of unsound head ; or by the principal being adjudicated an bankrupt under the commissariats of any Act for the clip being. The Contract Act. 1872202. Where the agent has himself an involvement in the belongings which forms the subject-matter of the bureau.
the bureau can non. in the absence of an express contract. be terminated to the bias of such involvement.The Contract Act. 1872204. The principal can non revoke the authorization given to his agent after the authorization has been partially exercised so far as respects such Acts of the Apostless and duties as arise from Acts of the Apostless already done in the bureau. The Contract Act. 1872205.
Where there is an express or implied contract that the bureau should be continued for any period of clip. the principal must do compensation to the agent. or the agent to the principal. as the instance may be. for any old annulment or repudiation of the bureau without sufficient cause. The Contract Act. 1872209.
When an bureau is terminated by the chief death or going of unsound head. the agent is bound to take. on behalf of the representatives of his late principal. all sensible stairss for the protection and saving of the involvements entrusted to him. The Contract Act. 1872212. An agent is bound to carry on the concern of the bureau with every bit much accomplishment as is by and large possessed by individuals engaged in similar concern.
unless the principal has notice of his privation of accomplishment. The agent is ever bound to move with sensible diligence. and to utilize such accomplishment as he possesses ; and to do compensation to his party.
* all the above Acts in the tabular array is under Act no: NineAn Agent may be appointed by the Principal. put to deathing a written and stamped papers. Such a papers is called Power of Attorney. There are two sorts of Power of Attorney: General and Special. A general power is one by which the agent is given an authorization to make certain general aims.
e. g. . pull offing an estate or a concern. A particular or peculiar power may be appointed by which an agent is authorized to make a specific thing. e. g.
. selling some goods. A adult male covering with a peculiar agent is bound to happen out the bounds of the authorization by which the authorization of the agent can move consequently.
6. The Law relating to Sale of GoodsThe jurisprudence associating to the sale of movable goods is contained in the sale of Goods Acts.6.
1 Buyer. Seller and GoodsBuyer refers to a individual who buys or agrees to purchase goods. While Seller means a individual who sells or agrees to sell goods. The term ‘Goods’ includes every sort of movable belongings except •Actionable claims and•Money.An actionable claim means a debt or a claim for money which a individual may hold against another and which he/she may retrieve by suit. Money means legal stamp money. Goods may be classified into three types: Existing Goods.
Future Goods. and Contingent Goods. Existing goods are goods which are already in being and which are physically present in some person’s ownership and ownership.
Future goods are goods which will be manufactured or produced or acquired by the marketer after the devising of the contract of sale. There may be a contract for the sale of goods the acquisition of which by the marketer depends upon a eventuality which may or may non go on. In such instances the goods sold are called Contingent goods.6. 2 Sale and Agreement to SellA contract for the sale of goods may be either a sale or an understanding to sell. Where under a contract of sale.
the goods is transferred from the marketer to the purchaser. the contract is called a sale. The dealing is a sale even though the monetary value is collectible at a ulterior day of the month or bringing to be given in the hereafter. provided the ownership of the good is transferred from the marketer to the purchaser.When the transportation of ownership is to take topographic point at a future clip or topic to some status to be fulfilled subsequently.
the contract is called an understanding to sell. An understanding to sell becomes a sale when the prescribed clip elapses or the conditions. topic to which the belongings in the goods is to be transferred. are fulfilled.6. 3 The Essential ElementssThe indispensable elements of a contract for the sale of goods are enumerated below.1. Movable goodsThe sale of goods act trades merely with the movable goods.
demuring actionable claims and money. This Act does non use to immoveable belongingss.2. Movable goods for moneyThere must be a contract for the exchange of movable goods for money.
Therefore in a sale there must be money-consideration. An exchange of goods for goods is non a sale.3. Two PartiesSince a contract of sale involves a alteration of Ownership.
it follows that the purchaser and the marketer must be different individuals. A sale is a bilateral contract. A adult male can non purchase signifier or sell goods to himself.4.
Formation of the contract of saleA contract of sale is made by an offer to purchase or sell goods for a monetary value and the credence of such offer. The contract may supply for the immediate bringing of the goods or immediate payment of the monetary value or both. or for the bringing and payment by installments. or that the bringing or payment or both shall be postponed.
5. Method of organizing the contractCapable to the proviso of any jurisprudence for the clip being in force. a contract of sale may be composing. or by word of oral cavity. or may be implied from the behavior of the parties.6. The footings of contractThe parties may hold upon any term refering the clip.
topographic point. and manner of bringing. The footings may be of two types: •Conditional footings•warranties of the footingsEssential footings of the contract are called Conditions. while the non-essential footings are called Guarantees.7. The Law of PartnershipPartnership is the relation between who have agreed to portion the net incomes of a concern carried on by all or any of them moving for all. A partnership. as defined in the Act.
must hold the following •There must be an understanding entered into by two or more individuals. •The understanding must be to portion the net incomes of a concern. •The concern must be carried on by all or any of them.
7. 1 Constitutions in partnership understanding1. Voluntary AgreementThe first component shows the voluntary contractual nature of partnership. A partnership can merely originate as a consequence of an understanding. express or implied. between two or more individuals.2. Sharing of Profits of a BusinessThe 2nd component states the motor underlying the information of a partnership.
It besides lays down that the being of a concern is indispensable to a partnership. Business includes any trade. business or profession. If two or more individuals join together to organize a music nine it is non a partnership because there is no concern in this instance. But if two or more individuals join together to give musical public presentation to the populace with a position of earning net income. there is a concern and partnership is formed.3.
Common AgencyThe 3rd component is the most of import characteristic of partnership. It states that individuals transporting on concern in partnership are agents every bit good as principals. The concern of a house is carried on by all or by any one or more of them on behalf of all. 7. 2 Entities in Partnership1.
PersonA individual may be spouse if he has the capacity to come in into a contract. Who is a ‘person’ ? For the intents of the Partnership Act. the term ‘person’ does non include a partnership or a limited company.2. MinorA child can non be a spouse. But in an bing partnership. a minor can be admitted into a house if all the spouses of the house agree. Such a minor gets all the benefits of a partnership.
3. Person of an unsound headA individual who is of unsound head can non go a spouse.4.
WomanA adult female can be a spouse. married or single. Of class a adult female can non be a spouse if she is a minor or she is of unsound head.5. CompanyIn a Company the capacity to come in into contract is determined by the Memorandum and Articles of the Association of the company. The liability of the members of a house under the Partnership Act.
for the debts of the house. is limitless liability. Therefore. a company can non go a spouse of a house.6. An foreignerAn foreign enemy can non come in into a contract of partnership with a citizen of Bangladesh.
8. Law Associating to Negotiable InstrumentsDocuments of a certain type. used in commercial minutess and pecuniary traffics. are called Negotiable Instruments. “Negotiable” means movable by bringing and “instrument” means a written papers by which a right is created in favour of some individuals. The term negotiable instrument literally means “a papers movable by delivery” . Three sorts of instruments are recognized as negotiable instruments- promissory notes. measures of exchange and Cheques.
8. 1 Promissory NoteA promissory note is an instrument in composing ( non being a bank note or a current note ) incorporating an unconditioned project signed by the marker. to pay a certain amount of money merely to. or to order of a certain individual. or to the carrier of the instrument. 8. 2 Essential Elementss of Promissory NoteFrom the definition given in the Act it is evident that the following indispensable demands must be fulfilled by an instrument intended to be a promissory note.
1. The instrument must be in authorship.2. The instrument must be signed by a marker of it. A signature in pencil or by a gum elastic cast of autotype is good. An illiterate individual may utilize a grade or cross alternatively of composing out his name.
The signature or grade may be placed anyplace on the instrument. non needfully at the underside. 3. The instrument must incorporate a promise to pay.
The promise to pay must be express. It can non be implied or inferred. 4. The promise to pay must be unconditioned. If the promise to pay is coupled with a status it is non a promissory note.
5. The shaper of the instrument must be certain and definite. 6. A promissory note must be stamped harmonizing to the Bangladeshi Stamp Act. 7.
The amount of money to be paid must be certain.8. The payment must be in the legal stamp money of Bangladesh. A promise to pay certain measure of goods or a certain sum of foreign money is non a promissory note. 9. The money must be collectible to a definite individual or harmonizing to his order. A note is valid even if the payee is misnamed or it is indicated by his official appellation merely.
10. The promissory note may be collectible on demand or after a certain definite period of clip.8. 3 Bill of ExchangeA Bill of Exchange is an instrument in composing incorporating an unconditioned order. signed by the marker.
directing a certain individual to pay a certain amount of money merely to. or to the order of a certain individual or to the carrier of the instrument.8. 4 Essential Elementss of a Bill of ExchangeA measure of exchange to be valid must carry through the undermentioned demands.1. The instrument must be in authorship.2. The instrument must be signed by a drawer3.
The instrument must be contained an order to pay. which is express and unconditioned. 4. The drawer.
drawee and the payee must be certain and definite persons. 5. The sum of money to be paid must be certain.6. The stamp must be in the legal stamp money of Bangladesh.7. The money must be collectible to a definite individual or harmonizing to his order. 8.
A measure of exchange must be decently stamped.9. The measure may be made collectible on demand or after a definite period of clip.8. 5 CheckA Cheque is a measure of exchange drawn upon a specified banker and collectible on demand.8. 6 Essential characteristics of Cheque1.
A Cheque must carry through all the indispensable demands of the measure of exchange. 2. A Cheque may payable to bearer or to order but in either instance it must be collectible on demand. 3. The banker named must pay it when it is presented for payment to him at his office during the usual office hours. provided the Cheque is validly drawn and the drawer has sufficient financess to hiscredit.
4. Bill and notes may be written wholly by manus. There is no legal saloon to Cheque being hand-written. Normally nevertheless. Bankss provide their clients with printed Cheque signifiers which are filled up and signed by the drawer. 5.
The signature must tally with the specification signature of the drawer kept in the bank. 6. A Cheque must be dated. A banker is entitled to decline to pay a Cheque which is non dated.
A Cheque becomes due for payment on the day of the month specified on it. 7. A Cheque drawn with a hereafter day of the month is valid but it is collectible on and after the day of the month specified. Such Checks are called post-datedCheques. 8. A Cheque must be presented for payment after the due day of the month but if there is excessively much delay the bank is entitled to see the fortunes leery and garbage to honour the Cheque.8. 7 Essential Features of Negotiable Instruments1.
Writing and SignatureNegotiable Instruments must be written and signed by the parties harmonizing to the regulations associating to Promissory Notes. Bills of Exchange and Cheques.2. MoneyNegotiable instruments are collectible by legal stamp money of Bangladesh.
The liabilities of the parties of Negotiable Instruments are fixed and determined in footings of legal stamp money.3. NegotiabilityNegotiable Instruments can be transferred from one individual to another by a simple procedure. In the instance of carrier instruments. bringing to the transferee is sufficient. In the instance of order instruments two things are required for a valid transportation: indorsement and bringing.
4. TitleThe transferee of a negotiable instrument. when he fulfills the certain conditions. is called the holder in due class. The holder in due class gets a good rubric to the instrument even in instances where the rubric of the transferor is faulty.5.
NoticeIt is non necessary to give notice of transportation of a negotiable instrument to the party apt to pay. The transferee can action in his ain name.6. GivensCertain givens apply to all negotiable instruments. Example: It is presumed that there is consideration. It is non necessary to compose in a promissory note the words “for value received” or similar looks because the payment of consideration is presumed.
7. Particular ProcedureA particular process is provided for suits on promissory notes and measures of exchange. ( The process is prescribed in the Civil Procedure Code ) . A edict can be obtained much more rapidly than it can be in ordinary suits.8. PopularityNegotiable instruments are popular in commercial minutess because of their easy negotiability and speedy redresss.9. EvidenceA papers which fails to measure up as a negotiable instrument may however be used as grounds of the fact of liability.
9. Multinational Corporations ( MNCs )Laws that affect MNCs in BangladeshThere are tonss of MNCs runing concern activities in Bangladesh. Apart from their planetary conformities and ordinances. they are to follow and keep the guidelines of Torahs and ordinances imposed by Ministry of Law. Government of the people’s democracy of Bangladesh and Board of Investments ( BOI ) . There are a figure of Torahs that affect concern in MNCs.
The following are the most of import apart from the regular Torahs by local authorities: Equal Pay Act ( 1970 )Employers must pay all workers equal wage for equal workSex Discrimination Act ( 1975 )Employers must non know apart against anyone for a occupation because of their sex Health and Safety at work Act ( 1974 )Employers must supply healthy and safe working conditions and employees must Contract act in a safe and responsible manner. Race Relations Act ( 1976 )Employers must non know apart against anyone for a occupation because of their race Sale of Goods Act ( 1979 )A consumer can action a concern if it sells them a merchandise that is of hapless quality. is non as described and does non suit the intent for which it is being sold. Contract of EmploymentAn understanding between the employer and employee.
It includes conditions such as rates of wage. hours of work. vacations. pension parts and the sum of notice that must be given if the worker wants to go forth or the employer wants to do the worker redundant. Employees taken on for a month or more must be given a written statement of the conditions within two months of the day of the month the occupation starts.There are besides assorted Torahs which prevent houses from copying others’ thoughts and innovations – COPYRIGHT – and which restrict the pollution that they can dispatch – ENVIRONMENTAL.