Chapter 1-
Introduction to Legal
Environment
Md. Abdullah-Al-Mamun
Lecturer
Department of Finance and Banking
Gopalganj Science and Technology University, Gopalganj- 8100
Law & Legislation
Law: It means any act, ordinance, order, rule, regulation, bye-law, notification,
or any other legal instrument, and any custom or usage having the force of law.
Legislation: It means the act or process of law-making.
Types of legislation: There are two types of legislation:
i. Supreme legislation constitution is the ultimate source of supreme
legislation.
ii. Subordinate legislation may be contingent or conditional legislation
that assists supreme legislation.
Classification of Law
1. Contract Law 7. Business law
2. International law 8. Administration law
3. Domestic law 9. civil law
4. Trust Law [Link] law
5. property Law [Link] law
6. Tort Law
Contract Law
This area of law governs the creation and enforcement of legally binding
agreements between two or more parties. It outlines the requirements for a valid
contract and the remedies available if one party fails to fulfill their promise.
Example: When you sign a tenancy agreement to rent an apartment in
Gopalganj, you are entering into a contract that is governed by contract law.
International Law
This body of rules is concerned with the rights and obligations of sovereign nations in
their interactions with each other and with international organizations. It covers areas
like human rights, trade, and armed conflict.
Example: The Geneva Conventions are a set of international treaties that
establish the standards for the humanitarian treatment of individuals during wartime.
Domestic Law
Also known as national law, this refers to the laws that exist within a particular
country and are applicable only within its jurisdiction. It is distinct from international
law and varies from country to country.
Example: The Bangladesh Penal Code, 1860, which defines criminal offenses
and their punishments, is a form of domestic law applicable only within Bangladesh.
Trust Law
This law pertains to a legal arrangement where one party (the trustee) holds and
manages assets for the benefit of another party (the beneficiary). It deals with
the duties and responsibilities of the trustee.
Example: A parent setting up an educational trust fund for their child,
where a bank (the trustee) manages the money until the child reaches a certain
age.
Property Law
This branch of law governs the various forms of ownership and tenancy in real property
(land and buildings) and personal property (movable possessions). It regulates the rights
to own, use, transfer, and sell property.
Example: The legal process of registering a deed at the local land office to transfer
ownership of a plot of land from a seller to a buyer is governed by property law.
Tort Law
This area of civil law provides remedies for civil wrongs or injuries that are not
based on a contract. It allows a person who has been harmed by the wrongful act of
another to claim compensation for their losses.
Example: If a driver's reckless driving causes a road accident and injures a
pedestrian, the pedestrian can sue the driver under tort law for medical expenses and
other damages.
Business Law
Also known as Commercial Law, this body of law governs business and commercial
transactions. It includes topics such as company formation, corporate governance,
sales of goods, and consumer protection.
Example: The process of registering a new private limited company with the
Registrar of Joint Stock Companies and Firms (RJSC) in Bangladesh is governed by
business law.
Administrative Law
This law governs the activities of government administrative agencies. It includes
the rules and regulations these agencies create and the legal procedures people
must follow when seeking a review of an agency's decision.
Example: If your application for a trade license is unfairly rejected by the city
corporation, you can challenge that decision in court based on the principles of
administrative law.
Civil Law
This is a broad category of law that deals with private disputes between
individuals or organizations, rather than criminal offenses. The goal is typically
to resolve the dispute and provide compensation for harm.
Example: A dispute between a landlord and a tenant over unpaid rent or
eviction is a civil law matter.
Religious Law
This refers to a legal system derived from religious scriptures or traditions. It
often governs personal status matters such as marriage, divorce, and inheritance
for people who belong to a particular faith.
Example: In Bangladesh, the inheritance of property for Muslims is
governed by Islamic Sharia law, which dictates how assets are divided among
heirs.
Marital Law
Often considered a part of Family Law, this branch focuses specifically on the
legal rights and responsibilities associated with marriage. It covers the creation
of the marriage (registration), the rights during the marriage, and its dissolution
(divorce or separation).
Example: The legal procedure for obtaining a divorce and settling matters
like spousal maintenance (alimony) is governed by marital law.
Civil Law
This is a broad category of law that deals with private disputes between
individuals or organizations, rather than criminal offenses. The goal is typically
to resolve the dispute and provide compensation for harm.
Example: A dispute between a landlord and a tenant over unpaid rent or
eviction is a civil law matter.
Sources of Laws
1) Custom
2) Religion
3) Equity
4) Precedent
5) scientific discussion of the jurists
6) Legislation
7) Legal fiction
Custom
Custom refers to the long-established practices and unwritten rules of a community
that have become so accepted over time that they are treated as legally binding. For a
custom to be recognized as law, it must typically be ancient, consistently followed,
and reasonable.
Example: Historically, in many parts of Bangladesh, certain community rights
over common lands or water bodies (like a village jalkar or fishery) were governed by
local custom long before formal laws were written.
Religion
This is a source of law derived from the sacred texts, traditions, and
interpretations of a particular faith. Religious law primarily governs personal
and family matters for followers of that religion.
Example: In Bangladesh, the laws concerning marriage, divorce, and
inheritance for the Muslim population are derived from Islamic Sharia law.
Equity
Equity is a body of legal principles based on justice and fairness, designed to
supplement statutory law and provide a remedy when a strict application of the
law would be unjust. It operates on conscience and fairness.
Example: An 'injunction' is a remedy based on equity. If a factory is
polluting a river and causing harm, a court can issue an injunction to immediately
stop the polluting activity, which is a fairer and faster remedy than just waiting to
claim monetary damages later.
Precedent
This is a law created by judges through their decisions in court cases. The legal
principle established in a higher court's decision becomes a binding rule
(precedent) that lower courts must follow in similar future cases. This ensures
consistency in the legal system.
Example: A landmark ruling on bail by the Appellate Division of the
Supreme Court of Bangladesh sets a precedent that all lower courts, including
the High Court and District Courts, must follow when deciding on bail
applications in similar circumstances.
Scientific Discussion of the Jurists
These are the scholarly writings, commentaries, and interpretations of law by
respected legal experts and academics. While not laws themselves, they can be
highly influential and are often used by judges and lawyers to understand,
interpret, and develop legal principles.
Example: The books and commentaries on the Code of Civil Procedure
by prominent South Asian jurists are frequently cited in the courts of Gopalganj
and the rest of Bangladesh to argue and decide upon complex procedural
matters.
Legislation
Legislation refers to the written laws, also known as statutes or acts, that are
formally enacted by a country's legislature (like a parliament). This is the most
direct and common source of new law in modern states.
Example: The 'Road Transport Act, 2018' is a piece of legislation passed
by the Bangladesh Parliament (Jatiya Sangsad) that sets out the rules and
penalties for all road traffic and transportation.
Legal Fiction
A legal fiction is an assumption of a fact made by a court, even though that fact
may not be true, to allow a legal rule to be applied or to overcome a procedural
difficulty. It is a device used to achieve justice.
Example: The concept that a corporation is a "legal person" is a
fundamental legal fiction. A company like Grameenphone is not a human being,
but the law treats it as a distinct person that can own property, enter into
contracts, and sue or be sued in its own name.
