SUBJECT: CORPORATE AND BUSINESS LAW ! !

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Introduction to UK Law

Definition of Law
Law can be defined as a system of rules established by a governing authority to create rights and
obligations for people to live or work by. It also contributes to the maintenance of social order by
the way it deals with disorder or conflict. The laws of England are made by Parliament (with some
exceptions we will go into later) and in breaking them one risks either punishment or compensating
the injured party.

Types of Law
Common Law and Statute Law

Common law refers to the substantive law and procedural rules that have been created by the
judiciary (judges) through decisions in previous court cases.

Statute law originates from Parliament in the form of legislation. An Act of Parliament is primary
legislation.

Common Law and Equity

This type of law is a bit of historical knowledge, as the two types of law came together under the
Judicature Acts 1873-75 and is now called just common law.

Originally, common law was created as traveling judges brought local customs from around the
country together to make rules common to the whole country. It is also thought that instead of
taking the best local customs to make common law, it was really the central State asserting its
authority in order to unite the previously fragmented country.

As the common law courts began to become more formal and less accessible, plaintiffs would
apply directly to the Sovereign, and the Lord Chancellor would consider and decide upon solutions.
As these applications increased, and the rigidity of the common law courts prevented them from
making decision, a specific court was created to deliver equitable or fair decisions on these cases.
So equity courts created piecemeal law to cover gaps or poorly covered areas of common law, and
where conflict arises, equity will prevail.

LSBF has a handy summary sentence in their literature: “Common law rights and remedies are
available as of right, whereas equity is based on fairness and justice.”

Civil Law and Criminal Law

The best way to cover this is to compare language, so weʼll start off with a definition of each and
then a comparison:

Civil Law Criminal Law

Private law which involves relationships Public law which relates to conduct considered
between individuals undesirable to the State.

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Civil Law Criminal Law

the injured party can claim a remedy or the State will punish the transgressor
compensation from the wrongdoer

the claimant - the injured party the State - in the UK criminal cases are
brought in the name of the crown,
eg Regina v ...

sues prosecutes

the defendant the accused or defendant

prove on the balance of probabilities prove beyond reasonable doubt

if successful, defendant is held liable if successful, defendant is found guilty and

prosecuted

defendant will be made to pay damages, or defendant will be sentenced to a fine or

other remedy imprisonment

It is important to note that a single incident could create a case that goes to two courts, one civil
and one criminal. For example, a driver who injures a person through reckless driving will be
charged in a criminal court under road traffic legislation, and will also be responsible to the injured
party in a civil court relating to the tort of negligence.

Sources and Additional Reading

Business Law, Fifth Edition, 2005 by Kelly, Holmes and Hayward
OpenTuition.com
LSBF Study Materials
http://www.legislation.gov.uk

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