BusLaw 3
BusLaw 3
BusLaw 3
BSA – 2A
- For me, a law is a set of guidelines, rules, and regulations that tell how something will
function. It is a system of rules, practices, and disciplines that we need to obey. In our
country, we have different kinds of laws: we have laws that our own government has
established; we have laws in our community, in our school, and even inside our
home. Business law is more specific; it pertains to a set of rules and regulations
associated with the business industry. Business law pertains to how businesses are
permitted and expected to operate legally. This is also about understanding the
business world.
- Characteristics of Law
(1) It is a rule of conduct. - Law tells us what shall be done and what shall not be done.
(2) It is obligatory. – Law is considered a positive command imposing a duty to obey and
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(3) It is promulgated by legitimate authority. - In a democratic country, like the
Constitution, laws called "statutes" are enacted by Congress which is the name of the
legislative branch of our government; local government units are also empowered to
(4) It is of common observance and benefit. - Law is intended by man to serve man. It
regulates the relations of men to maintain harmony in society and to make order and co-
existence possible. Law must, therefore, be observed by all for the benefit of all.
- The Principal Sources of Law in the Philippines are the Constitution, legislation,
administrative rules and regulations, judicial decisions, and customs.
may be defined as "the written instrument by which the fundamental powers of the
government are established, limited, and defined, and by which these powers are
distributed among the several departments for their safe and useful exercise for the
benefit of the people." (Malcolm & Laurel, Phil. Constitutional Law, 1936 ed., p. 6.)
(Salmond, Jurisprudence, 9th ed., p. 209.) It is the preponderant source of law in the
Philippines. Acts passed by the legislature are so-called enacted law or statute law.
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(3) Administrative or executive orders, regulations, and rulings – They are those
regulations are intended to clarify or explain the law and carry into effect its general
provisions. Administrative acts are valid only when they are not contrary to the laws
(4) Judicial decisions or jurisprudence – The decisions of the courts, particularly the
Supreme Court, applying or interpreting the laws of the Constitution form part of the
legal system of the Philippines. (Art. 8, Ibid.) The decisions of a superior court on a
point of law are binding on all subordinate courts. This is called the doctrine of
(5) Custom – “It consists of those habits and practices which through long and
rules of conduct," It has the force of law when recognized and enforced by the state
(M.J. Gamboa, op. cit., p. 15) For instance, in a contract for services rendered where
ascertained from customs and usages of the place (Smith vs Lopez, 5 Phil. 78.)
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4. Kinds of Law?
Kinds of Law:
There are eight kinds of law which are discussed here as follows:
4. Conventional law.
5. Customary law.
7. International law.
8. Civil law.
Positive law is a rule which prescribes a general course of action imposed by some authority
that enforces it by a superior power, either by physical force or another sort of compulsion. The
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2. Physical or Scientific Law:
the conduct of living beings or lifeless things for example the law of motion, gravitation, and of
chemical reactions. The uniformity in the conduct of animate or inanimate objects is known
Natural or Moral law is also known as divine law, the law of reason, the unwritten law,
the universal law, the common law, and the eternal law. According to Salmond; “By natural law
4. Conventional law:
Convention means agreement. Conventional law must have an agreement between two
parties- and not the force or coercion of a superior. It is thus the name given to a body of rules
agreed to be followed by some parties in order to regulate their conduct towards one another.
For example, the rules of cricket and other games. International law is also a species of
conventional law.
1). Rules enforced by the parties themselves but not recognized by the State, e.g., the rules of
2). Rules recognized and enforced by the State, e.g., the articles of association of a limited
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5. Customary Law:
Customary law means such rules of custom as habitually being followed by the majority
of persons, subject to them, since a long time in the past and are expected to be followed in the
“Such laws derive their force from the long course of past conduct resulting in the same
Essentials of Customs:
1. Reasonableness
3. Peacefully
4. Continuously
6. As of right
Practical laws are such laws consisting of rules which are to be followed to achieve
uniformity of results in practical or technical matters for example the laws of health, the laws of
architecture or manufacture.
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7. International Law:
According to Salmond; “Those rules which govern the sovereign state in their relations
According to Lord Russel “The aggregate of rules to which nations have agreed to
8. Civil Law:
The words “civil law” owe their origin to the Romans who described it as applicable to
their own citizens as jus civile, as distinguished from jus gentium which applied to foreigners.
In jurisprudence, civil law means laws of the land as are enforced by the courts.
Conclusion:
It is concluded that the definition of Law is that it is the body of principles that are
recognized and enforced by the State for the administration of Justice. It is difficult to give it a
comprehensive and perfect definition as it is a social science that grows and develops with the