Business Organisation and Law

The law has three functions: - It provides rules to solve conflicts - It has a regulatory function. Rules and regulations on the basis of which society is organized. - What we wish to achieve with law: a society for everybody, protection of the weaker party and a society in which everybody’s interests are respected. This will be often determined by political choices International law Values and standards of society vary in the world. There is no single world government to make and enfor...

Legal personality First thing to decide is whether to opt for a corporate legal form with or without legal personality. With a legal personality it’s called a legal entity. This is an independent legal organ, this means that like a natural person, it can take on obligations. The legal entity can enter into agreements; employ people, lease a building etc. If someone buys something from a legal entity it has an agreement with this legal entity and not with the manager of the company. If you buy ...

Some relationships can be valued in terms of money. This part of private law is called property law in general. Property law can be divided in 1. Law of obligations (contract and tort) 2. Property law (real property and property rights) The law of obligations concerns all obligations a person (or company) can have. Obligations legal bond between parties. An obligation is a legal relationship between two or more persons on the grounds of which one party has the obligation to produce / perform an...

Definition of a contract of sale Sale: “the agreement under which one of the parties undertakes to deliver a thing and the other party to pay a price in money in return”. As such sale is a reciprocal contract. The seller commits to handing over an object and the buyer commits to paying the price. Both have an individual obligation. Good are things and property rights. A thing is a physical object (tangible) which is subject to human control”. Things are further divided into: 1. Movable p...