The Basics of Law
Law is the study of the rules that people in a particular area or country have to follow in order to be treated fairly. It is also the study of how those rules are created and enforced.
There are many different kinds of laws. Some are made by governments and apply to all citizens, while others are made for specific purposes. The law can keep the peace, protect individual rights, preserve the status quo, promote social justice, and help people cooperate with each other.
Some legal systems are better at these purposes than others. These include common law, which is based on court decisions rather than statutes, and civil law, which is a system of rules that is generally derived from Roman or canon law and sometimes supplemented by local custom and culture.
In common law jurisdictions, such as England and the United States, courts are governed by a body of precedent that has been established by previous cases decided in similar circumstances. This principle is known as the doctrine of precedent, or stare decisis, and it binds lower courts to make sure that future courts reach similar results in similar circumstances.
Other legal systems are based on statutes, which are written by the legislative branch of government and may be adopted in whole or in part by the executive. In these systems, judges and barristers are responsible for deciding cases and setting out their reasoning in writing.
Statutes are often very long and complex and contain a large number of rules and regulations. They can cover a variety of subjects, such as marriage and divorce, custody of children, inheritance, business law, and the rights of prisoners and criminals.
The law can be codified, a method of making laws official and enforceable, or uncodified, an approach that is still used in some countries. It is also possible to create legal contracts, which are binding agreements between two or more parties that require the parties to observe certain laws and procedures.
Commercial law is a broad field covering complex contract and property law. It includes areas such as agency, insurance, bills of exchange, and insolvency and bankruptcy law, which were all influenced by the medieval Lex Mercatoria.
Company law is a special type of commercial law that covers the legal aspects of companies. These can range from a single proprietorship to multi-national corporations. The law of company formation is an important aspect of this area, as it involves establishing a new company and registering its shares.
In the case of companies that have shareholders, they are legally bound to follow the terms of their shareholder agreements. These may include provisions such as a limited liability clause, which protects shareholders from personal responsibility in the event of a corporation’s bankruptcy.
These contracts can be interpreted by the courts, which are independent of the executive branch, as they are often enacted to protect investors from fraud and abuse in the market. The courts can also order companies to pay compensation when they violate their shareholders’ interests.