Business is a part of social activity, regulated by the law. Business law is the law connected with business. It is an aggregate of those rules which are connected with trade, commerce and industry. It is known as commercial law and mercantile law. The term business law may be defined as that branch of law which is concerning to trade, industries and commerce. It is an ever growing branch of law with the changing circumstances of trade and commerce. It is concerning with the establishment, operation, development, expansion and winding up of any business activities. It regulates the relation between business entities in regard to contracts, sale of goods, partnership, companies insurance, insolvency, carriage of goods, arbitration and so on.

Business law is not separate discipline. It is a part of civil law. It deals with the rights and obligations of businessmen or business firms that arise out of the business transactions. There is no demarcation of business law with other branches of law in term of application and procedure, businessmen or business firms who commit offense in regard as other offender.

According to A.K Sundran: Business law provides legitimacy, security, control and incentives to business activities. It also protects rights and interests of consumers or labors, and business and society.

M.C. Kuchhal sates: The term mercantile law may be defined as the branch of law which comprises laws concerning trade, industry and commerce.

Thus business law is that part of law which deals with all the laws connected with every activity of business and rights and obligations of business persons and business firms arising from the business transactions. It helps the business community to carry it's transactions without and fears and uncertainty with certainty and confidence.

  Features of Business law

 Basic features of business law are as follows:

  • Business law is the fast growing part of law.
  • It regulates industry, trade and commerce.
  • It regulates every business activities of business community.
  • It includes the law of contract, company, agency, banking, insurance, arbitration.
  • It protects rights and interest of business community.
  • It is most important means to create positive environment for the prosperity of business.

 Importance of Business Law

 Business law is a part of law which is relating to trade, commerce and industry. It is very much important in business community from starting point to ending point of every business activity. Establishment, operation, winding up of business institution should be recognized by law and it provides validity for business activities. As a regulating and controlling instrument, the business law significantly contributes to develop the business area. The need and important of business law can be mentioned as follows:

  • To establish and run the business activities.
  • To increase and maintain business transactions.
  • To develop capital market.
  • To develop the economic activities.
  • To prepare the foundation for national development.
  • To create employment and support the national interest.
  • To create the environment for investment.
  • To regulate the behavior of businessmen and officials of the business sectors.
  • To develop the new principle of business.
  • To increase the knowledge of international business.
  • It helps to protect public health, safety and environment protection.
  • To settle the commercial disputes.
  • To aware and caution to obligations and duties of businessmen and firms.