BUSINESS LAW 2012

BUSINESS LAWS SELF RESEARCH 1. THE DEFINITIONS

WHAT IS LAW?

Law is a system of rules a society sets to maintain order and protect harm to persons and property or a system of regulations to govern the conduct of the people. Laws are enforced by the police, supported by the court and prison systems. Laws are written by legislators, such as senators or congressmen. There are many categories of law. These include contract law, property law, trust law, law, criminal, constitutional law, administrative law, and international law.

WHAT ARE COMMON LAWS?

Common

law (also

known

as case similar

law or precedent) tribunals rather than

is law developed through legislative

by judges through decisions of courts and statutes or executive branch action.

a legal system that gives great precedential weight to common law, on the principle that it is unfair to treat similar facts differently on different occasions a body of legal precedent compiled by past court decisions. These decisions become the rules that common law judges use to decide legal disputes

WHAT ARE EQUITY LAWS?

The set of legal principles that supplement strict rules of law where their application would operate harshly. commonly said to "mitigate the rigor of common law", allowing courts to use their discretion and apply justice in accordance with natural law Fairness and impartiality towards all concerned, based on the principles of evenhanded dealing.
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NUR ARINAH HJ RAMLE | HNDBM/11/02/C

BUSINESS LAW 2012

So basically, common law is a body of legal precedent compiled by past court decisions. These decisions become the rules that common law judges use to decide legal disputes. Courts of equity provide a remedy when common law courts decide a case constitutes an inequitable situation. The common law court determines things are legally unbalanced between two parties; the court of equity provides equalizing relief.

Equity to common law tends to reduce any injustice caused by the strict application of the common law and mitigates

in its broadest sense, equity is fairness. As a legal system, it is a body of law that addresses concerns that fall outside the jurisdiction of Common Law. Equity is also used to describe the money value of property in excess of claims, liens, or mortgages on the property.

2. THE HISTORY For most of the history of the common law, there were two "sets" of courts: the courts of law and of equity. These were merged in the 19th century, but equity had a vigorous separate existence for nearly 500 years. Before about 1400, however, the functions of equity (to dispense "mercy or to soften the rigors of law by applying principles of fairness to a case were incorporated into the three common law courts: King's Bench, Common Pleas and Exchequer. The Chancellor, who would later be the "judge" in the court of equity, was the King's secretary, and he ran the administrative apparatus of the state. Chancery was the office from which the common law writs were issued.

Equity, unlike the common law, was never intended to be an independent system of law. It presupposed the existence of the common law, which it supplemented and modified. The history of equity is connected with the common law writ system, the rigidity of the common law, the Lord Chancellor and the court of chancery. Petitions to the King in Council to do justice were made as a consequence of the inflexibility of the common law system of justice. Originally, an action in the Kings Courts
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BUSINESS LAW 2012

commenced only with a writ, but this was only available in a limited number of cases. In addition, changing social conditions gave rise to novel disputes, including the use (the forerunner to the trust). The effect was that aggrieved parties petitioned the king in Council to do justice. These petitions were transferred to the Lord Chancellor who, after a period of reflection, made his decision. Ultimately, the Court of Chancery was set up to deal with such cases. The rulings by court of Chancery formed a body of law called equity. Before the Judicature Acts 1873 and 1875, there were in effect two systems of law; rues of law applied in the common law courts and the rules of equity created in the Chancery Court. One of the policies of the Judicature Acts was to fuse the administration of law and equity. Thus, today, rules of equity are recognized and may be applied in any court of law.

NUR ARINAH HJ RAMLE | HNDBM/11/02/C