Legal Environment of Business ( 3 Credits )
Course Title: Legal Environment of Business
Code No: FO 514
Area of Study: Core
Credit: 2
Course Objective:
The course is designed to provide a general understanding of legal processes and practices that have
close nexus with the management of an organization. The course helps the students understand legal
environment of business and furthermore enables them apply their skills to comply with the legal
system they work for their organization
Course Detail
Unit I: Introduction to the Legal Environment of Business: LH 4 hrs
Meaning, nature and importance of legal environment of business; Meaning, Nature, Classification,
Importance and Sources of both General Law and Business Law
Unit II: Principles of Contract Law LH 7 hrs
Definition, genesis and importance of contract law ; Formation of contract (Offer, Acceptance and
consideration) ; Types and essential elements of contract Standard Form of contract and Unfair term
of contract; Significance and validity of E-contract; Void and voidable contracts; Discharge of
contracts; Breach of contract and remedies.
Special contracts: Sale of goods: Contract of sale of goods, conditions and warranties, transfer of
property, rights of an unpaid seller.
Unit III: Negotiable Instruments LH 5 hrs
Meaning, genesis, nature, importance and types of Negotiable Instruments; types; negotiation and
assignment; holder-in-due course, dishonor and discharge of a negotiable instrument, arbitration
Unit III: Companies Law LH 10 hrs
Definition, nature, genesis and importance of company; theories relating to corporate personality;
Incorporation of company; Rights and obligations of promoters, shareholders, board of directors and
other Corporate Officers; Winding up of a company; Liquidation of company and provisions relating
to Liquidator under Insolvency Act; Corporate Governance and its theories; OECD principles
Corporate Governance; Corporate social responsibilities; Criminal liability of company; Insider
trading and money laundering and business related cyber corporate crimes.
Unit IV Labour Laws: LH 6 hrs
Meaning, Nature, scope and genesis of Labour law; Labour employment and welfare; collective
bargaining and trade unions; Powers and functions of Labour Office, Factory Inspector and Labour
Court
References:
Acts
Contract Act, 2056 BS;
Agency Act 2014 BS,
Labour Act 2048 BS,
Labour Rules, 2050 BS
16
Trade Unions Act, 2049 BS
Company Act, 2063 BS
Bank and Financial Institutions Act, 2063 BS
Insolvency Act, 2063 BS
Negotiable Instruments Act, 2034 BS
Treatises
C.G. Weeramantry, An Invitation to Law, Lawman (India) Private Limited, New Delhi,
1998.Chapters 1,3 and 4.
Christopher D. Stone, Where the Law Ends: The Social Control of Corporate Behaviour, Harper &
Row Publishers, New York, 1975, Chapters 17-19
Reinier Krakkman and et al., The Anatomy of Corporate Law, Oxford University Press, 2004.
Arthur R. Pinto and Douglas M. Branson, Understanding Corporate Law, Matthew Bender & Co.
Inc, 1999
Frank H. Easterbrook and Daniel R. Fischel, The Economic Structure of Corporate Law, Harvard
University Press, Cambridge, 1991
Satyanarayan, Kalika, Business Law, Buddha Academic Enterprise, Kathmandu
S.R Bahl, Business Law, Kitab Mahal, Alahabad