The legal background

Abstract

Most aspects of life are governed by law, and business is no exception. There is no generally accepted definition of ‘law’ — in fact its meaning may vary with its context — but to most people ‘law’ connotes a body or set of rules. These rules not only proscribe certain kinds of conduct by rendering them criminal (imposing a penalty or punishment where the rules are broken) but also, equally important for business, provide an enabling mechanism to allow the achievement of desired business objectives. For example, rules define how to make a legally binding contract, how to set up a new company, or how to register a patent. The only penalty for failure to follow the rules is failure to achieve business objectives.