BUSINESS LAW NOTES BAF 2105/ DBM 1311
INTRODUCTION
Meaning of law
i) Business law, also called commercial law or mercantile law, it is a body of rules applied in
governing the dealings between persons in commercial matters.
ii) Law may be defined in the words” A rule of human conduct, imposed upon and enforced among
the members of given state”
Morality refers to whatever (if anything) is actually right or wrong. These are principles
concerning the distinction between right and wrong or good and bad behavior
Comparison of Law and Morality
Law
i) The rules of law may be enforced by an action of courts.
ii) Laws are certain and they are universally applicable to all citizens of the state
iii) A legal wrong may be morally right
Morality
i) It does not attract the sanction of court for its enforcement e.g. no one can be sued for failing to
respect the elders.
ii) Morality is uncertain, different communities have different canons of morality in a society.eg
Indians don’t eat cows
iii) A moral wrong may be legally right.eg being greedy, failing to assist the poor
Relationship
between law and morality:
“The state is founded on the minds of its citizens, who are moral agents”, says; Professor R.N.
Gilchrist, “….A bad people means a bad state and bad laws”. It is true that law is the subject of
study in Political Science and morality is the subject- matter of Ethics, yet there is a close affinity
between the two.
Here we are to deal with the close intimacy found between law and morality. Law and morality
are complementary to each other. Ethics teaches citizens the code of conduct.
1
,BUSINESS LAW NOTES BAF 2105/ DBM 1311
It shows them the distinction between truth and a falsehood. It makes us aware of the wrongness
and rightness of our actions. Ethics enables us to think in moral terms and upgrades us in moral
terms. It helps us in raising our moral standard. Laws framed by the state also aim at the same.
The ultimate end of the state lies in promoting the welfare of the people. The state aims life.
Political Science also enables individuals to come out as good citizens, individual can become an
ideal citizen only when he follows the Code of conduct by morality. So there is a close affinity
between law and morality.
Ideal citizens are to be an ideal state. A state can become an ideal state only when it operates
through ideal laws of morality. Morality is the basis of ideal laws. If the state operates through
ideal laws which are based on morality, it will help the emergency of an ideal state.
For example, laws framed with a purpose of eliminating such evils and malpractices as drinking
of wine, gambling, theft, dacoity and murder are moral laws. They arouse our sentiment of morality
and enable us to become ideal citizens. Only those laws which are based on morality remain
permanent.
A state within moral laws cannot make a progress. In a state where crimes are given impetus people
will remain busy in committing crimes and will not be able to think of their own progress. As a
result, they will degenerate into the primitive savage. In this connection, Plato has very aptly
remarked, “The best state is that which is nearest in virtue to the individual. If any part of the body
politic suffers, the whole body suffers”.
A bad state will have bad citizens and a good state will have good citizens. So it is the sole function
of the state to keep a good standard of morality. This is the reason why the Government of India
is trying its best to eliminate the evil of untouchability. It has already framed laws against
untouchability.
It is rather a sin to adopt the policy of discrimination on the grounds of caste and creed, colour and
race, clans and tribes, groups and classes. The government is taking measures to prohibit the
drinking of wine. Drinking is a sin and at the same time, it is illegal and child marriages were
prohibited.
The foregoing discussion makes it very clear that law and morality are very closely related to each
other. One is the complement of the other. Gettell maintains that the law which are not in
2
,BUSINESS LAW NOTES BAF 2105/ DBM 1311
accordance with the moral concept of the people cannot be possibly applied and the laws
sanctity….” Generally, laws are the image of morality.
Democracy does not generally have any such law as opposed to morality. Wilson has very correctly
observed that the law of a state is the result of the development of morality in the state. This is the
reason why the sovereign law-making authority pays due attention to the code of the intimacy
between law and morality that “the margin between the illegal and immoral is not clear”.
“We regard the state”, says MacIver, “as the condition of morality. The state and law continually
affect both public opinion and actions; in its turn law reflects public opinion and thus acts as the
index of moral progress”.
Difference between Law and Morality:
(1) There is a marked distinction between law and morality. The first point of difference is that
laws are enforced by the state whereas canons of morality are followed at the call of institution. If
one disobeys the commands of law or violates the laws, he is liable to be punished by the state but
if one fails to observe the scruples of morality, he is not liable to be awarded physical punishment.
The severest punishment that can be awarded to a person for not observing the scruples of morality
is his social boycott.
(2) Morality is concerned with both internal and external affairs of man whereas law is concerned
only with the external affairs of man. Hence, law punishes only those persons who violate laws by
their external actions. For example, law punishes a person only when he-commits a theft or dacoity
or murder or any other physical crime.
Law cannot punish a person for telling a lie or for abusing some-one. Telling lies, condemning
someone, showing disgrace to others, being ungrateful and many other internal actions of man are
sins but they are not crimes.
(3) There are many things which are not illegal according to law but are unacceptable to morality.
For example, telling lies, showing disgrace to others, feeling greedy, being ungrateful and not
helping the poor, are not against the spirit of law.
Not only this, sometimes the adoption of immoral policies by the state for the cause of common
welfare is not illegal in the eyes of laws. Machiavelli maintained that even the immoral practices
are legal, if they are applied for the benefit of the state.
3
, BUSINESS LAW NOTES BAF 2105/ DBM 1311
(4) Similarly, there are many things which are illegal in the eyes of the state but are acceptable to
morality. For example, it is not a sin not to keep to the left or to drive the vehicle fast in the market.
The fact is that the canons of morality are concerned with the moral duties whereas the laws of the
state are concerned with the legal duties.
(5) Another point of distinction between law and morality is that laws are certain and universal
and they are universally applicable to all citizens whereas the canons of morality are quite
uncertain.
Not only this, many time’s different races have different canons of morality in a society. For
example, a large number of people think it immoral to eat meat and drink wine. But at the same
time, there are people in India who think it quite moral to eat meat and drink wine.
(6) The government should, at first, arouse the moral sentiment of the people and then enforce the
laws. The laws which are not based on the sentiment of morality are less effective and less
permanent.
For example, Sharda Act is quite ineffective these days. In the end, we can say that morality cannot
be thrust upon the state. And it is also clear that law cannot cover all the ground of morality. “To
turn all moral obligations”, says MacIver, “in legal obligations would be to destroy morality”.
“There is thus a legal conscience as well as a moral conscience, and they do not always coincide”.
The main purposes of law are as under:
1) To regulate the conduct or behavior of the persons
2) To provide justice to the members of the society
3) To maintain the political and economic stability
4) To protect the fundamental rights and freedoms of the individuals
5) To establish the procedures and regulations regarding the dealing among the individuals.
6) To maintain peace and security in the country.
7) Resolving the disputes. The law provides a formal means for resolving disputes
Classification of laws
a) Public and Private Law
b) Civil Law and Criminal Law
4
INTRODUCTION
Meaning of law
i) Business law, also called commercial law or mercantile law, it is a body of rules applied in
governing the dealings between persons in commercial matters.
ii) Law may be defined in the words” A rule of human conduct, imposed upon and enforced among
the members of given state”
Morality refers to whatever (if anything) is actually right or wrong. These are principles
concerning the distinction between right and wrong or good and bad behavior
Comparison of Law and Morality
Law
i) The rules of law may be enforced by an action of courts.
ii) Laws are certain and they are universally applicable to all citizens of the state
iii) A legal wrong may be morally right
Morality
i) It does not attract the sanction of court for its enforcement e.g. no one can be sued for failing to
respect the elders.
ii) Morality is uncertain, different communities have different canons of morality in a society.eg
Indians don’t eat cows
iii) A moral wrong may be legally right.eg being greedy, failing to assist the poor
Relationship
between law and morality:
“The state is founded on the minds of its citizens, who are moral agents”, says; Professor R.N.
Gilchrist, “….A bad people means a bad state and bad laws”. It is true that law is the subject of
study in Political Science and morality is the subject- matter of Ethics, yet there is a close affinity
between the two.
Here we are to deal with the close intimacy found between law and morality. Law and morality
are complementary to each other. Ethics teaches citizens the code of conduct.
1
,BUSINESS LAW NOTES BAF 2105/ DBM 1311
It shows them the distinction between truth and a falsehood. It makes us aware of the wrongness
and rightness of our actions. Ethics enables us to think in moral terms and upgrades us in moral
terms. It helps us in raising our moral standard. Laws framed by the state also aim at the same.
The ultimate end of the state lies in promoting the welfare of the people. The state aims life.
Political Science also enables individuals to come out as good citizens, individual can become an
ideal citizen only when he follows the Code of conduct by morality. So there is a close affinity
between law and morality.
Ideal citizens are to be an ideal state. A state can become an ideal state only when it operates
through ideal laws of morality. Morality is the basis of ideal laws. If the state operates through
ideal laws which are based on morality, it will help the emergency of an ideal state.
For example, laws framed with a purpose of eliminating such evils and malpractices as drinking
of wine, gambling, theft, dacoity and murder are moral laws. They arouse our sentiment of morality
and enable us to become ideal citizens. Only those laws which are based on morality remain
permanent.
A state within moral laws cannot make a progress. In a state where crimes are given impetus people
will remain busy in committing crimes and will not be able to think of their own progress. As a
result, they will degenerate into the primitive savage. In this connection, Plato has very aptly
remarked, “The best state is that which is nearest in virtue to the individual. If any part of the body
politic suffers, the whole body suffers”.
A bad state will have bad citizens and a good state will have good citizens. So it is the sole function
of the state to keep a good standard of morality. This is the reason why the Government of India
is trying its best to eliminate the evil of untouchability. It has already framed laws against
untouchability.
It is rather a sin to adopt the policy of discrimination on the grounds of caste and creed, colour and
race, clans and tribes, groups and classes. The government is taking measures to prohibit the
drinking of wine. Drinking is a sin and at the same time, it is illegal and child marriages were
prohibited.
The foregoing discussion makes it very clear that law and morality are very closely related to each
other. One is the complement of the other. Gettell maintains that the law which are not in
2
,BUSINESS LAW NOTES BAF 2105/ DBM 1311
accordance with the moral concept of the people cannot be possibly applied and the laws
sanctity….” Generally, laws are the image of morality.
Democracy does not generally have any such law as opposed to morality. Wilson has very correctly
observed that the law of a state is the result of the development of morality in the state. This is the
reason why the sovereign law-making authority pays due attention to the code of the intimacy
between law and morality that “the margin between the illegal and immoral is not clear”.
“We regard the state”, says MacIver, “as the condition of morality. The state and law continually
affect both public opinion and actions; in its turn law reflects public opinion and thus acts as the
index of moral progress”.
Difference between Law and Morality:
(1) There is a marked distinction between law and morality. The first point of difference is that
laws are enforced by the state whereas canons of morality are followed at the call of institution. If
one disobeys the commands of law or violates the laws, he is liable to be punished by the state but
if one fails to observe the scruples of morality, he is not liable to be awarded physical punishment.
The severest punishment that can be awarded to a person for not observing the scruples of morality
is his social boycott.
(2) Morality is concerned with both internal and external affairs of man whereas law is concerned
only with the external affairs of man. Hence, law punishes only those persons who violate laws by
their external actions. For example, law punishes a person only when he-commits a theft or dacoity
or murder or any other physical crime.
Law cannot punish a person for telling a lie or for abusing some-one. Telling lies, condemning
someone, showing disgrace to others, being ungrateful and many other internal actions of man are
sins but they are not crimes.
(3) There are many things which are not illegal according to law but are unacceptable to morality.
For example, telling lies, showing disgrace to others, feeling greedy, being ungrateful and not
helping the poor, are not against the spirit of law.
Not only this, sometimes the adoption of immoral policies by the state for the cause of common
welfare is not illegal in the eyes of laws. Machiavelli maintained that even the immoral practices
are legal, if they are applied for the benefit of the state.
3
, BUSINESS LAW NOTES BAF 2105/ DBM 1311
(4) Similarly, there are many things which are illegal in the eyes of the state but are acceptable to
morality. For example, it is not a sin not to keep to the left or to drive the vehicle fast in the market.
The fact is that the canons of morality are concerned with the moral duties whereas the laws of the
state are concerned with the legal duties.
(5) Another point of distinction between law and morality is that laws are certain and universal
and they are universally applicable to all citizens whereas the canons of morality are quite
uncertain.
Not only this, many time’s different races have different canons of morality in a society. For
example, a large number of people think it immoral to eat meat and drink wine. But at the same
time, there are people in India who think it quite moral to eat meat and drink wine.
(6) The government should, at first, arouse the moral sentiment of the people and then enforce the
laws. The laws which are not based on the sentiment of morality are less effective and less
permanent.
For example, Sharda Act is quite ineffective these days. In the end, we can say that morality cannot
be thrust upon the state. And it is also clear that law cannot cover all the ground of morality. “To
turn all moral obligations”, says MacIver, “in legal obligations would be to destroy morality”.
“There is thus a legal conscience as well as a moral conscience, and they do not always coincide”.
The main purposes of law are as under:
1) To regulate the conduct or behavior of the persons
2) To provide justice to the members of the society
3) To maintain the political and economic stability
4) To protect the fundamental rights and freedoms of the individuals
5) To establish the procedures and regulations regarding the dealing among the individuals.
6) To maintain peace and security in the country.
7) Resolving the disputes. The law provides a formal means for resolving disputes
Classification of laws
a) Public and Private Law
b) Civil Law and Criminal Law
4
