Business Law is a subject that business and commerce students study in their course. Because they are not the students of Law therefore a question may arise in the mind of a student “Why I am studying business law?” but the answer is quite reasonable that a business student has to run some business in future, either his own or he may be a manager in some business owned by other individuals. In order to start and run the business smoothly he must know about the laws relating to his business issues. Now we will put into light some points due to which a business student should know business law.
Formation of a business
In order to start a business there are certain legal requirements that must be fulfilled. Even if we talk about sole proprietorship which is simplest form of business also requires some formalities in certain businesses for example if a person wants to start a business of petrol pump or CNG station then he must obtain license. This requires legal knowledge which can be obtained by studying Business Law. If a person want to form partnership with other persons then in order to form a business in legal manner and to register it, so that their firm may enjoy legal benefits knowledge of law is required. So in order to get this knowledge he must know the law that regulates partnership i.e. Partnership Act 1932. Similarly if a person wants to form a company then he must have knowledge of Companies Ordinance 1984. It reveals that in order to start the business knowledge of law regarding this business is essential which can be obtained by studying Business Law.
Formation of a valid contract
Students of MBA after completion of their education enters in the market and in order to perform various business operations they have to make several contracts. These contracts should be formed without any legal fault, so that these contracts can be enforced by law if any party to contract breaches the contract. For this purpose they should...
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