Week 1 COMMERCIAL LAW - Introduction & Chapter 1

RANACO EDUCATION & TRAINING INSTITUTE

LAW 243 COMMERCIAL LAW

LAW 243COMMERCIAL LAW

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COURSE OUTCOME

CO1. Students should be able to know and understand the communication process. (PO5, PO8)

CO2. Students should be able to know about communication challenges in today’s world. (PO5, PO8)

C03. Students should be able to understand the step-by step process in organizing and composing messages. (PO3, PO4)



CHAPTER 1

MALAYSIAN LEGAL SYSTEM

1.1 Definition of law1.2 Classification of law1.3 Sources of Malaysian law1.4 Judicial system in Malaysia



LESSON OUTCOME

By the end of this chapter, students should be able to:

1.Define the word “law”2.Know the classification of law and its components in brief3.Identify the sources of Malaysian law4.Understand the judicial system in Malaysia



1.1 Definition of law

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Activity:Brainstorm What comes to

your mind when you heard the

wordLaw?



CONTINUE

> Oxford Dictionary:

The system of rules which a particular country or

community recognizes as regulating the actions of its members and which it may enforce by the imposition

penalties.

5Source: Oxford dictionary



CONTINUE

> Sir John Salmond

(1862-1924):

The body of principles recognized and applied by

the state in the administration of justice.

6Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.



1.2 Classification of law

LAW

Public law(individual+state)

International law(state+state)

Private law(individual+individual)

Constitutional law

Criminal law

Public international

law

Private International

law

e.g. Law of contract

e.g. LawOf trust

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CONTINUE

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Public law :

• The law which governs the relationship between individuals and the state.

• Public law may be further subdivided into two categories i.e. constitutional law and criminal law.

• Constitutional law lays down the rights of individuals in the state. It deals with questions such as supremacy of Parliament and rights of citizens. It also covers areas dealing with state and federal powers.

• Criminal law codifies the various offences committed by individuals against the state. A crime is a wrong against the state for which punishment is inflicted by the state.

Source: Lee Mei Pheng & Ivan Jeron Detta, Commercial law, Oxford Fajar, 2011.



CONTINUE

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International law:

• The law which governs the relationship between state and state.

• It may be subdivided into two categories:

1. Public international law

2. Private international law.




CONTINUE

Private law:

• Private law concerned with matters that affect the rights and duties of individuals amongst themselves.




1.3 Sources of Malaysian law

The main sources of Malaysian law are:

A. Written law (also referred to as statute law):1. Federal Constitution2. State Constitution3. Legislation4. Subsidiary legislation

B. Unwritten law:1. English law2. Judicial decision3. Customary law

C. Islamic law



A. WRITTEN LAW

1. Federal Constitution:- Supreme law of Malaysia- Provides the powers of

the Federal & State Governments

- Provides fundamental rights of

individual




CONTINUE

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2. State Constitution:

- Regulates State Governments

- Contains provisions derived from 8th schedule of the Federal Constitution

3. Legislation:

- enacted by Parliament and the state assemblies

• Act: laws made after 1957

• Ordinances: - laws made 1946-1957

- laws in Sarawak




CONTINUE

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4. Subsidiary legislation:- Laws made under any Acts, Enactments or Ordinances - Very important because specify the laws in more detail and for everyday matters- Example:

Parent Act (main law) : Hire-Purchase Act 1957Subsidiary Legislation : Hire-Purchase (Repossession) Regulation

- Subsidiary legislation made in contravention of either a parent Act or the Constitution is void.




B. UNWRITTEN LAW

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1. English law:- Applicable in the absence of local laws- Suitable to local circumstances

English Commercial Law?

• Section 5(2) of the Civil Law Act 1956, English commercial law applies to Penang, Malacca, Sabah & Sarawak

• If no local laws applicable• Today, many local laws dealing with commercial matters

e.g. Contracts Act 1950, Partnership Act 1961, Companies Act 1965




CONTINUE

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2. Judicial decisions:

- Judge’s decision

- Doctrine of binding precedent :

Not decide cases arbitrarily- must follow precedents (previous decisions of similar situations). Each court is

bound by the decisions of courts of the same level or higher than it in the same hierarchy of courts, whether

or not it believes a decision is correct.




CONTINUE

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3. Customary law:

- Customs practiced by local people

- Generally, customs relating to family law are given legal force by courts in Malaysia-marriage, divorce, inheritance

- Sabah and Sarawak: native customary laws apply

- Peninsular Malaysia:

Adat Perpatih - Malays in Negeri Sembilan & Naning in Melaka

- land, lineage, election of rulers Adat Temenggung - many states

- from Palembang, Sumatra




C. ISLAMIC LAW

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• applicable to Muslims only, does not apply to non Muslims• family matters (marriage and divorce)• estate matters (inheritance, wasiat)




1.4 Judicial system in Malaysia

FEDERAL COURTFEDERAL COURT

COURT OF APPEALCOURT OF APPEAL

High Court in MalayaHigh Court in Malaya High Court in High Court in Sabah & S’wakSabah & S’wak

Sessions CourtSessions Court

Magistrates’ CourtMagistrates’ Court

Penghulu’s CourtPenghulu’s Court

Syariah CourtSyariah Court

Session CourtSession Court

Native CourtNative Court Syariah CourtSyariah Court

Magistrates’ CourtMagistrates’ Court

Juvenile Court Juvenile Court




QUESTIONS

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1. The main sources of Malaysian law comprise: statute law, unwritten law and Islamic law (True / False)

2. The following are written law except:

a. Legislation enacted by Parliament and State Assemblies/ perundangan

b. Judicial decisions of the superior courts

c. Subsidiary legislation

d. State Constitutions



CONTINUE

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3. Unwritten law also referred to as statute law (True / False)

4. In Perak, Malacca, Sabah and Sarawak, English commercial law at the date on which the matter has to be decided is applicable in the absence of local legislation (True / False)



CONTINUE

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5. Judge decides cases arbitrarily without refer to decided cases (True / False)

6. The following statements are true except:

a. Federal Constitution provides fundamental rights of individual

b. Judge must follow precedents (previous decisions of similar situations)

c. English law applicable in the absence of local laws eventhough not suitable with local

circumstances

d. State Constitutions contains provisions derived from 8th schedule of the Federal Constitution



CONT.

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7. Subsidiary legislation made in contravention of either a parent Act or the Constitution is voidable (True / False)

8. Private law is the law which governs the relationship between individuals and the state (True / False)

9. Public law is the law which governs the relationship between state and state (True / False)

10. Public law may be further subdivided into 2 categories: constitutional law and criminal law (True / False)



THANK YOU!

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Documents

Week 1 COMMERCIAL LAW - Introduction & Chapter 1