Business Law

Chapter 1

There is a large number of sources of law.

Sources of Law

Formal sources: They are the laws of states manifested by statues or decision of the courts. Material Sources: They are such sources from which the law derives its matter. These sources may be 1. Historical sources 2. Legal sources Historical sources: They consist of such sets of rules framed traditionally in an authorized way but later they have been adopted and accepted as a legal rules or principles by usage. Such sources have framed COMMON LAW & EQUITY.

Legal Sources
Legal Sources are

1. Legislature 2. Precedents 3. Customary Conduct 4. Agreement

1. Legislature: It is a part of a state formed by the parliament of Pakistan (National Assembly, and other bodies to whom working of framing laws have been delegated. The MNAs present the bills which are discussed in parliament and when after voting they are passed in consultation of Senate they become Laws (Acts).

Legal Sources

2. Precedent: It is a judgment of the court in court decision which is cited and referred to as an authority for deciding identical cases, the precedents serve as authority for legal principles embodied in its decision. 3. Customary Conducts: It so happens that the initial source of law is based on the customary conduct of community life. 4. Agreements: In all sorts of contracts the parties incorporate a number of requirements. Voluntarily which become binding on the contracting parties in the duration of performances of contracts.

CASE LAW Meaning: Customs of society are accepted by community and society frames rules and regulations and when such rules and regulations are formality expressed in judicial decisions they become case laws simply laws.
Definition: The Law Merchant is a kind of Private International Law administered by tribunals consisting principally of the merchants customs and commercial usages necessary for conduct of business Definition: Common Law The main source of common law is the customary conduct of community life. The group life create customs and when these customs become stabilize to the extent that each member of the society is justified in assuming that every other member of society will respect them and will act with conformity with them Definition: Equity Equity in fact is a development made on common law. It is an attempt by the court to remedy the defect of common law on the basis on fairness and good principles.

Court/ Judiciary Complete Judiciary

Half (Quasi) Judiciary Powers of Lower Court Special Court/ Tribunals Income Tax Appellate Tribunals Insurance Tribunals Banking Tribunals

Supreme Court High Court

Lower Court

Labor Courts

Supreme Court
High Court

Lower Court is Comprising of Below

Criminal

Civil

Judicial Magistrate

District Judge/ Additional District Magistrate

Senior Civil Judge

Civil Judge

Lower Court

Criminal

Civil

Judicial Magistrate

District Judge/ Additional District Magistrate When period Of punishment above 3 Years

Senior Civil Judge

Civil Judge

When period Of punishment up to 3 Years

Judicial Magistrate

Senior Civil Judge

Civil Judge

Against Judgment of the Above the Appeal files before below

District Judge/ Additional District Magistrate

BIRDS EYE VIEW OF CIVIL COURTS Name of Court 1) Supreme Court of Pakistan 2) High Court Judicial Staff Chief Justice Justices Chief Justice Justices Original jurisdiction Writ Jurisdiction in the issues of public importance Supervision control, company Bench, Banking Court.

3) District Court

District Judge
Additional District Judge Certain suits of unlimited value of subject matter

4) Civil Court
5) Rent Controller Family Court

Civil Judge 1st Suit of unlimited value of subject matter. Class

Civil Judge 2nd Class Suit having value of subject matter not exceeding Rs. 50,000.

Civil Judge 3rd Suit having of the subject matter not Class exceeding Rs. 5000

District Judge/ Additional District Magistrate

Original Jurisdiction

Appellate Jurisdiction Listen appeal against the Order of Below

When period Of punishment above 3 Years

Judicial Magistrate

Senior Civil Judge

Civil Judge

BIRDS EYE VIEW OF CRIMINAL COURTS

Name Of Courts High court Session Court Judicial Staff Chief Justice Justice Session Judge Additional Sessions Judge Asst. Sessions Judge Jurisdiction Supervisory Control on subordinate Criminal courts All other offences not covered in judicial magistrate jurisdiction Authority/Limit to Award Sentences Many pass sentences as authorized by law May pass any other sentence as authorized by law but sentence of death with confirmation High Court Any sentences authorized by law except death sentences or impressments exceeding 7years.

As prescribed by provincial govt. in one or more courts

Magistrat e Courts

Judicial Magistrate Local areas as defined by First Class Provincial Govt.

Judicial Magistrate Local areas as defined by Second Class Provincial Govt. Judicial Magistrate Local Areas as fixed by Provincial Third Class Govt. Special Judiciary Magistrate Powers given by Provincial Govt. on recommendation of High Court

i) Imprisonment not exceeding one year ii) Fine not exceeding Rs.15000/=
i) Imprisonment not exceeding one year ii) Fine not exceeding Rs.5000/= i) Imprisonment not exceeding one month ii) Fine not exceeding Rs.100/= Subject to the authority vested by Provincial Govt.

Chief Justice - Supreme Court

Four Chief Justice- High Court

In Every Province

Punjab

Sindh

NWFP

Balouchistan

High Court

In Every Province

Punjab

Sindh

NWFP

Balouchistan

Two important Bodies

Law Making (Legislating)

President Parliament Governor Provincial Assembly

Law Implementing (Judiciary)

Supreme Court High Court Lower Courts

Law

Name of Law

Making Body

Year of Becoming Law

Contract

ACT

1872

Always read three parts as name of Contract

Law

Name of Law

Making Body

Year of formation

Income Tax

Ordinance

2001

Always read three parts as name of Contract

PROCESS OF LEGISLATION BY PARLIAMENT

Meaning of Legislation: according to the constitution of Islamic Republic of Pakistan 1973 Pakistan Parliament consist of a. Senate b. National Assembly Parliament is the supreme law making body and is not subject to any legal limits on its powers to create, alter repeal earlier statues overrule case laws developed in the courts and make new laws (enact) on matters for which no law exists. It cannot however prevent future Parliament to change the law. The work of enacting law by Parliament means legislation.

PROCESS OF LEGISLATION BY PARLIAMENT

The act begins as a bill after passing through the National Assembly and Senate becomes law on the granting of acceptance of the President Act is binding on every one of the purpose of Act of parliament to: Create new law when none exist before. Consolidate existing law Amend existing law Cancel existing law Authorize taxation Codify and clarify existing law.

Law making body

President and Governor

Parliament and Provincial assembly

Ordinance

ACT

ACT is made by

Parliament

Provincial Assembly

Jurisdiction Of Law

Jurisdiction Of Law

Whole Country

Whole Province

Ordinance is made by

President

Governor

Jurisdiction Of Law

Jurisdiction Of Law

Whole Country

Whole Province

Jurisdiction area

President Parliament

Governor Provincial assembly

Whole Country

Whole Province

Parliament

National Assembly

Senate

Bill

National Assembly

2/3rd Majority Pass

Senate

President Of Pakistan

Become LAW

Relationship Is Created by

Blood

Contract

Brother & Sister Father & Son

Husband & Wife Sale / Purchase Employer / Employee Landlord / Tenant Partnership Business

How to become owner of Property/Goods By

Inheritance

Contract

Seller looses ownership & buyer gets ownership Includes GIFT, Purchase, Sales