PRINCIPLES OF BUSINESS LAW

Principles of Business Law

Table of Contents

Introduction3

Discussion3

Companies Act 20064

United Kingdom Company Law4

Statutory Law5

Common Law5

Equity (Law)5

Ratio decidendi6

Partnership Act 18906

United Kingdom Partnership Law6

The Limited Liability Partnerships Act 20006

Commercial Law7

Contract Law8

Definition of a Contract9

Elements of a Contract10

Conclusion10

References12

Principles of Business Law

Introduction

Business laws are also referred to as commercial laws. They are the laws that govern, regulate and determine business practices. They can be sorted as public laws (statutes that govern relationships between private entities and the government)or private laws (laws or statutes that regulate interactions between individuals or other private entities, such as companies). Business laws relate to a broad variety of commercial activities, to disposal of industrial waste from the drafting of business contracts (written accords relating to labor, trade, or some other feature of a commercial deal). (Lowry , 2010)

These paper discusses principles of business law taking “Procter and Gamble” as an example.

Discussion

There are a number of categories of business law, each designed to address a specific aspect of commercial activities. All over history business laws have been established to address specific issues of problems related to commercial activities. Traditionally business laws were created by the merchant class and were designed to ensure that commercial transactions took place under conditions that were fair and safe for the merchants involved. At the same time, special courts were established to mediate and resolve disputes. In medieval Europe (or the Middle Ages, from about 500 to about 1500) merchants and traders working in a particular region would frequently organize into groups, with the aim of securing their mutual financial interests against hostile forces, such as pirates or foreign armies. One of the most famous of these organizations was the Hanseatic League, a confederation of commercial towns in northern Germany and other parts of Europe. Formed in the mid-thirteenth century, the Hanseatic League emerged at a time when Germany lacked a central government; it was designed to protect the interests of German merchants in the absence of a unified legal system. At its height the Hanseatic League regulated trading practices over a wide swath of northern Europe, extending all the way from London, England, to many other countries. (Smith, 2004)

Companies Act 2006

In October 2009, the gradual completion of the Companies Act 2006 ended. It signifies a full modernisation and review of the company law framework of the UK. The Companies Act 2006 established various considerable modifications to develop and make company law simpler - creating it less complex to comprehend and more adaptable - and conveying rough advantages to company of equal to £400m annually. The aims of the Companies Act 2006 were to simplify a make and operate a business, develop meeting of permanent savings and shareholders; and lessen the load of rules, particularly for small companies. (www.legislation.gov)

United Kingdom Company Law

United Kingdom Company Law adjusts businesses created under the Companies Act 2006. United Kingdom Company Law governed by the UK Corporate Governance Code, the Insolvency Act 1986, court cases and European Union Directives, the concern is the main official ...