AF2504Introductionto

BusinessLaw
Lecture1
IntroductiontoHKLegalSystem

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 PartI

ClassificationofLawsandLegal
Systems

OriginandSourcesofHongKong
Law

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 ClassificationofLaw(1)
CriminalLawvs CivilLaw
Differences CriminalLaw CivilLaw

Objectives Maintainsocialorder Definingrights

Punishingthewrongdoer Resolveconflicts
Compensatingthevictim
Partiesinacourtcase Prosecutor(HKSAR) Plaintiff
Defendant Defendant
HKSARv.Defendant Plaintiffv.Defendant
Consequencesof Fine/Imprisonment Payingcompensation
violation
Standardofevidenceto Thecasemustbeproved Thecasemustbeprovedona
proveacaseincourt beyondreasonabledoubt. balanceofprobabilities.

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 ClassificationofLaw(2)
PrivateLawvsPublicLaw

LawofContract Constitutionallaw
LawofTort Administrativelaw
LawofProperty Criminallaw
LawofTrust

PersonPerson GovtPerson
PrivateLaw PublicLaw

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 LegalSystems(legalorigins)
Civillawsystem Commonlawsystem Others
(e.g.
Islamic
law)
Major Legislaturemakes BoththeLegislatureand
difference law. judgesmakelaw.
Lawsarecodified. Courtdecisions(judge
(legislation/ madelaw)arebinding
statute) precedents(caselaw).

Jurisdictions France,Germany, US,UK,Singapore,India,

Japan,China etc.
(Mainland),etc.

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OriginsofHongKongLegalSystem
HKwascededtotheGreatBritainin1842.
TheEnglishlegalsystem(commonlawsystem)was
introducedtoHKbytheBritish.
Section3(1),thethenApplicationofEnglishLaw
Ordinanceprovidedthat
EnglishcommonlawandrulesofequityshouldbeinforceinHongKong
insofarastheywereapplicabletothecircumstancesofHongKongorits
inhabitants.

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 After1997
BasicLaw
Article5:onecountry,twosystems
Article8:confirmsthatthelawspreviouslyinforceinHKremain
effective
Article18
ThelawsinforceintheHongKongSpecialAdministrativeRegionshall
bethisLaw,thelawspreviouslyinforceinHongKongasprovidedfor
inArticle8ofthisLaw,andthelawsenactedbythelegislatureofthe
Region.
Article84:
ThecourtsoftheHongKongSpecialAdministrativeRegionshall
adjudicatecasesinaccordancewiththelawsapplicableintheRegion
asprescribedinArticle18ofthisLawandmayrefertoprecedentsof
othercommonlawjurisdictions.

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 SourcesofHKLaw
1. TheBasicLaw
2. Chinesenationallaw(limitedtonationality,defenseandforeignaffairs)
3. Commonlaw(seeslides13&14)
Doctrineofbindingprecedent/staredecisis
Wherethecommonlawrulesaretobefound? lawreports
E.g.IRCv.Hinchy[1960]1AllER505
4. Rulesofequity(seeslide18)
Whenthereisconflictbetweentherulesofcommonlawandtherulesof
equity,rulesofequityprevails.
5. Legislation(seeslide20)
6. Chinesecustomarylaw
S.13oftheNewTerritoriesOrdinance:thecourtsmayrecogniseand
enforceChinesecustomsinrelationtolandintheNewTerritories.
7. Internationallaw

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 Commonlaw
Before1066,therewasnosinglesystem
oflawwhichappliedtothewhole
England.
WilliamI conqueredEnglandand
establishedacentralgovernment.
TheKingssentjudgestravelingaround
thecountrytohearcases.
Whendecidedcases,thejudgesapplied
principlesdrewoncommoncustoms,
andappliedtheminsubsequentcases.
Hence,createdlegalprinciplescommon
appliedacrossEngland common
law.

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 TheDoctrineof Precedent
Generalprinciples
Similarcasesshouldbedecidedinasimilarmannerfor
consistency.i.e.a similar subsequentcasewillfollowthe
decisioninapreviouscase.
Doctrineofbindingprecedents:Followingalreadydecided
cases.()
Staredecisis:(Latin)Tostandbypreviousdecisions.
HighercourtsvLowercourts
Alower courtisboundbyadecisiongivenbyahigher court.
Thelowestcourtsdonotmakeprecedentsbecausetheir
decisionsareusuallynotreported.

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 RulesofEquity
Bythe15th century,theprocedureofcommonlawhad
becomeveryslow,technicalandexpensive.Italsogrew
rigidwhilecircumstanceschanged.
Itcouldnotsatisfythegrowingneedofpeople.People
petitionedtheKing himselfforjusticeandproperremedy.
TheKingdelegatedtheworktotheChancellor,andthe
ChancellorlaterformedtheCourtofChancery.
Whendecidingcases,theCourtofChancerywasnotbound
bythedoctrineofbindingprecedent,andanyformalityin
procedure.
Casesweredecidedbythesenseoffairness andconscience
ofthejudges.

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The common law courts and the
Court of Chancery co-existed
until 1870s.

After that, all courts in England

(and HK) can apply both
common law rules and the rules
of equity.
 Legislation
Ordinances
Primaryformoflegislation
PassedbytheLegCo
E.g.SaleofGoodsOrdinance(Cap.26)
Wheretofind?http://www.legislation.gov.hk/eng/index.htm
Rules,Regulations,Order,etc.
Subsidiarylegislation
MadebytheExecutiveCouncilorotherbodiesempoweredby
relevantordinances
Whenthereisconflictbetweencommonlaw/rulesof
equityandstatutelaw,statutelawprevails.

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 PartII

Creationand
Interpretationof CourtSystem
laws

LegalProfession

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 TheProcessofPassingLegislation
Legislative Government First Reading
Council Gazette

Second Reading
Executive
Council

Committee
Stage

Bill
Ordinance Third Reading

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 InterpretationofLegislation
Whenadisputearisesinvolvingdifferent
understandingofaspecificlegislationprovision,
[whichbody?] willinterpretthelaw.

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 InterpretationRules
Intrinsicaids(interpretationthatcanbefoundwithinthe
samestatute)
Extrinsicaids
TheInterpretationandGeneralClausesOrdinance(Chap.1)
Commonlawrules
TheLiteralRule:usingtheordinarymeaningoftheword
IRCv.Hinchy[1960]
TheGoldenRule:Whereliteralinterpretationofawordcangive
risetoanabsurdoutcome,thecourtwillmodifytheordinary
meaningsoastoavoidabsurdity.RvAllen[1872]
TheMischiefRule:Courtshouldtakeintoaccountthemischief
thatthestatuteintendstoremedy.Smithv.Hughes [1960]

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 Courts/Tribunals
SmallClaimsTribunal
Contractortortclaimsunder$50,000
Informalprocedure/legalrepresentationnotallowed
LaborTribunal
Employmentcontractclaimsexceeding$8,000
Informalprocedure/legalrepresentationnotallowed
MagistratesCourt
Allcriminalcasescommencefromhere
MoreseriouscasestransferredtoDistrictCourtorCourtofFirst
Instance
CoronersCourt:investigateunnaturalorsuspiciousdeaths

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 LandsTribunal
Claimsforpossessionofpremises,tenancies,sub
tenanciesandbuildingmanagementdisputes
DistrictCourt
Civil:upto$1million
Criminal: Mayimposemaxi.7yearsimprisonment
cannothearmurder,manslaughterorrapecases
HighCourt
CourtofFirstInstance
Unlimitedcivilandcriminaljurisdiction
CourtofAppeal
CourtofFinalAppeal

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 HKLegalProfession
(2)Barristers
Workassolepractitioners(inchambers)
Specialiseinspecificlegalmatterssuchas:
draftingdocumentsrelatingtolitigation
advocacy(arguingincourt)
givingopinionsonthelaw
Professionalbody:HongKongBarAssociation
Clientscannotconsultthemdirectly
Theyrepresentclientsincourts(normallyin
highercourts)

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HKLegalProfession
(1)Solicitors
Workasgeneralpractitioners
(infirms)
Adviseclientsonallaspectsof
thelawsuchas:
draftingcontracts,wills,etc.
dispensingadviceonpurchaseof
property,divorcematters,etc.
Professionalbody:HongKong
LawSociety

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 LawsagainstCorruption
(1)IndependentCommissionAgainst
CorruptionOrdinance(Cap204)
(2)PreventionofBriberyOrdinance(Cap201)
(3)Elections(CorruptandIllegalConduct)
Ordinance(Cap554)

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 AntiMoneyLaunderingand
CounterTerroristFinancing
(1)AntiMoneyLaunderingandCounterTerrorist
Financing(FinancialInstitutions)Ordinance(AMLO)
(2)DrugTrafficking(RecoveryofProceeds)Ordinance
(3)OrganizedandSeriousCrimesOrdinance
(4)UnitedNations(AntiTerrorismMeasures)
Ordinance
(5)UnitedNationsSanctionsOrdinance

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TheEnd

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 IRCvHinchy[1960]
S.25oftheIncomeTaxAct1925providedthatany
taxavoidershouldpayafineof20plustreblethe
taxwhichheoughttobechargedunderthisAct.
Hinchyoughttopay146astax,butheonlypaid
132.
Hearguedheshouldbefined20plus14 3=42
Byapplyingtheliteralmeaningofs.25,thecourt
decidedheshouldpay146 3=438

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 RvAllen[1872]
S.57oftheOffencesAgainstthePersonAct1862madeitan
offencetomarrywhilstonesoriginalspousewasstillalive
(andtherehadbeennodivorce).
Allen,havingawife,wentthroughaceremonyofmarriage
withanotherwoman.Hewaschargedasguiltyofbigamy.
Hislawyerarguedbeingmarried,Allencouldnothavevalidly
marryanotherperson.
Thecourtheldthatthewordmarrycanmeantobecome
legallymarriedortogothroughaceremonyofmarriage.To
dootherwisewouldhaveproducedanabsurdresult.

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 Smithv.Hughes[1960]
S.1(1)oftheStreetOffencesAct1959saiditshallbean
offenceforacommonprostitutetoloiterorsolicitina
streetorpublicplaceforthepurposesofprostitution.
Thecourtconsideredappealsbywomenwhohadbeenon
abalconyoratthewindowsofgroundfloorrooms.In
eachcase,thewomenwereattractingmenbycallingto
themortappingonawindow.
Theyarguedtheywerenotguiltysincetheywerenotin
thestreetorinpublicplace.
LordParkersaidtheActaimedatcleaningupthestreet.
Soitdidnotmatterwhethertheprostituteswerestanding
inthestreetoronthebalconyoratthewindow.

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