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The Functions of Law

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Functions of Law
Table of Contents The Law Concept of Functions of Law Kinds of Law to Carry Different Functions Advantages of Law Functions of Law in different perspectives Contract law Functions of Contracts Indemnity Contract Indemnity Holder Guarantee Bailment Agency Bibliography

The Law

C:UsersUzairDownloadsbinhduong16_omiw_MQMA.jpgC:UsersUzairDownloadsProtest_2762043b.jpgC:UsersUzairDownloadsINDONESIA_-_Ministro_bando_ahmadi.jpgThe law defines the principles people live in a society. Through which we have balance in not only our society but also in our lives. Law gives the indication of what is right by making that act legal and what is wrong by making it illegal. By committing illegal acts the specific individual will be subject to the negative consequences depending upon the nature of the illegal act committed and these consequences will also be subject to time. (Clark, 1942) Hence law determines the prescribed parameters within which the humans should lead their lives. These laws may vary from country to country, region to region, state to state and area to area. Maintaining law and order is mandatory is a society to be functional and to inculcate fear into the hearts of those who commit illegal acts and they would certainly think before taking any step of being caught and facing the consequences in a strongly law abiding society or else there would had been no stable economy. Above displayed pictures resemble the people suffering from an outlawed society that they are being deprived of their rights of for example integrity, future, security, freedom, liberty and independence. The extreme left picture demonstrates the people of Philippines being outraged at the democracy their country that it is corrupt and depriving them of their rights hence as a result they are holding a Law is of interest to all persons, not just to lawyers. Those entering the world of business will find themselves subject to numerous laws and government regulations. A basic knowledge of these laws and regulations is beneficial if not essential to anyone contemplating a successful career in the business world of today. A universal and uniform definition is difficult. The evolution of society is a dynamic nature and hence the difficulty in accepting a definition by all. One reason in defining law is the different types of purpose sought to be achieved: HORSE to a zoologist, a traveller, polo player, for some article of food etc. There have been and will continue to be different definitions of law:
  1. ARSTOTLE (384-322 B.C.) a pledge that citizens of a state will do justice to one another’
  2. PLATO (427-347 B.C.) believed that law was a form of social control.
  3. SIR WILLIAM BLACKSTONE (1723-1780) ‘A rule of civil conduct prescribed by the supreme power in a state, commanding what is right, and prohibiting what is wrong’
Generally and the most commonly accepted definition is “A rule of action to which men are obliged to make their conduct comfortable”. “Law is the command of the sovereign. It imposes a duty and is backed by a sanction. Command, duty and sanction are three elements of law”. All these statements can be considered as definitions of law but they vary and all are based on: law consists of enforceable rules governing relationships among individuals and between individuals and their society.

Concept of Functions of Law

The concept regarding the functions of law holds a major importance. The nature of law and the disciplines associated with law are explained by it and are interpreted and applied correctly and also pinpoint the interaction of law with social institutions and norms. This helps determine which general principles correspond to which law and should either deviate or conform, and to explain the law within the normative philosophy. There are different kinds of laws and each law has its own functions some of which may involve similar objectives but all having the primary goal of equity and fairness. The four functions of law involves preventing socially undesirable behavior and also securing desirable behavior which is performed in criminal torts and law; the provision f facilities for privately enabled arrangements between individual parties, which is found in private, tort and criminal law; the provision of services and also the redistribution of goods found in legal systems; and settling unregulated disputes found in tribunals and courts. It also handles the indirect and secondary of the law. Secondary functions of the law include determining of the processes for changing the regulation and the law for the operation of law-applying organs. The law serves the primary functions of keeping peace, enforcing and influencing the conduct standards, the facilitation of the systematic change, also the facilitation of planning and the comprehension of the sensible expectations, the promotion of social justice, the maintaining of status quo in some aspects of the society, and lastly, providing a mechanism for compensation solutions between polar principles and positions. Object of law is to maintain law and order in the country that is police functions. Anoter view ‘limit natural liberty’; man is born free but is in chains everywhere.. The Hindu view, purpose of law is the welfare of the people in the world and also salvation after death. Muslim: ‘the end of law is to promote the welfare of man both individually and socially, not merely in respect of life on this earth but also life hereafter.

Kinds of Law to Carry Different Functions

  • Moral or Natural law deals with the universal rules of governance, principles of natural justice and also the divine law.
  • Conventional law deals with the rules or regulations of voluntary organizations for example associations, clubs etc.
  • The customary law deals with the customs, practices, traditions with historical sanction and support for example Jirga.
  • Technical law is used in the matters of efficient conduct of business for example building laws, and laws of health.
  • The imperative law is imposed upon men by some authority. Emphasis is put on the will and physical force of the organized political community in the imperative law. Then the laws of science and gravity are also determined.
  • International law is the sum of laws and rules recognized by civilized in their dealings with each other.
  • Then is finally the civil law which is the municipal law which is the domestic law of the state. Civil law has two branches. One is the common law, a branch which consists of non-criminal law. Then is the legal system or the Continental law, any of various codes or systems of the law which historically derive from Roman law. The Civil law (area) is a branch of Continental law which serves as the general part of the private law.

Advantages of Law

Law creates uniformity and certainty to the administration of justice. It avoids the dangers of arbitrary, biases and dishonest decisions. It establishes fixed principles to protect the administration of justice from the errors of individual judgment and laws are also more reliable than whims, wishes and desires. Laws are the only constitutional weapon to resolve disputes among individuals and parties. (Fletcher, 2000)

Functions of Law in different perspectives

The law is based on what is morally correct and ethical. In the historical perspective the law consists of social traditions and customs. In the Analytical perspective it is shaped by logic. In the sociological perspective it is provides a way to advance certain goals in the best interests of society. It is the set of rules created and enforced by the governing party. According to the Critical Legal Studies legal rules are unnecessary and legal disputes should be solved by using rules based on fairness. In the Economics perspective promoting the market efficiency should be the key concern of the law. (Lexiz, 2001)

Contract law

Keeping promises is important to a stable society. Contract law deals with, among other types of law, contract law reflects social values, interests, and expectations at a given point in time for example what kind of promises should be legally binding, what excuses are accepted for breaking promises, legally void or invalid. (Hall, 1960)

Functions of Contracts

No aspect of life is entirely free of contractual relationships. By this we mean for example the marriages, inheritance of assets, employment and the entire life around us is in one way or the other linked to some sort of contracts. Contract law is designed to provide stability for both buyers and sellers which means that neither the seller nor the buyer is able to take undue advantage at the expense of the other and there is proper legal proceeding in case if such a situation is created. Hence there should be equitable and fair trade between the parties or else the law will take care of it. Law is also followed in business agreements to avoid potential future problems for example in the case of giving out jobs the new recruit should be aware of the complete job description and what is be to expected to them and the employer should be aware of potential of the individual they are recruiting. Likewise in the case of carrying out business the business should be conducted by fair means and legally. There should be no theft, fraud or any sort of illegal activity involved in carrying out the business. (LaFave, 2000) Whether it is personal, corporate, or societal, laws are created to protect the interests of the common people. According to the textbook, Business Law: The Ethical, Global, and E-commerce Environment, 13th Edition, the most important functions of law include the following:
  1. The Peacekeeping
  2. Checking of the government power so that if reasonable expectations can realized
  3. Facilitation of expectations so that if reasonable expectations can be realized
  4. Economic growth promotion through the free competition
  5. Social justice promotion
  6. Environmental protection
These functions of law protect the interests of individuals and businesses through a system of rules, enforced by governing bodies. These systems of laws include:
  1. Constitutional
  2. International
  3. Administrative
  4. Property
  5. Contract
  6. Tort
  7. Trust
  8. Criminal
The roles and functions of law provide guidelines and rules for everything an individual can encounter, both professionally and socially. At the same time it also provides the individual with means with which to protect their own self or challenge the injustice. In today’s world which is seemingly shrinking in size because of the continuously growing populations, without the existence of these regulations and rules the economy would experience a massive rise in the criminal actions as well as also increased atrocities. As the ‘common sense makes good law’, dishonest people and the criminals do not certainly have common sense, and it is left to the governing bodies to defend not only the innocents from the criminals, but also to protect the criminal from themselves. (Boyce, 1982)

Indemnity Contract

Contracts also serve the function of indemnity which is an undertaking to make good monetary or other loss or damage. By which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person for example (John) contracts to indemnify (Ben) against the consequences of any proceeding which (Alison) may take against (Ben) in respect of a certain amount. (Reference.com, 2007) The person in this case (John) who gives the indemnity is called the indemnifier and the person (Ben) for whose protection it is given is called the indemnity-holder or indemnified. Scope of indemnity is restricted to those cases where there is a promise to indemnify against loss, caused by the (John) promisor himself or (Ben) by any other person. This excludes loss from accidents like fire etc. Promise of indemnity may be expressed or implied. (Gross, 1979)

Indemnity Holder

The person to whom the indemnity is given that is the promise acting within the scope of his authority. His rights: include entitled to claim all damages which he may have been compelled to pay. Also recover all cost reasonably covered in resisting, reducing, or ascertaining the claim. Moreover the rights also include the right to compromise a claim on best term he can and then bring an action on the contract of indemnity. (Roles And Functions Of Law In Business And Society, 2014)


Guarantee is a promise to be answerable for the debt, default or miscarriage of another. Contract of Guarantee: to perform the promise, or discharge the liability of a third person in case of his default. When a third person promises to pay debt owed by another in the event the debtor does not pay a guarantee relationship is created. Surety: Person who gives the guarantee. Principal Debtor: Person in respect of whose default the guarantee is given. Creditor: Person to whom the guarantee is given. For example John takes a loan from Ben when Alison guaranteed repayment of the loan. John is the principal debtor, Ben the creditor and Alison the surety. The function of a contract of guarantee is to enable a person to get a loan, or goods on credit or an employment. Mutual assents are an essential element of a contract of guarantee. It is not a unilateral contract. There must be an offer and acceptance.


Another function of Contract is to act as Bailment. Bailment from bailer (French) meaning to deliver. Signifying a contract resulting from delivery. Bailment implies a sort of relationship in which the personal property of one person temporarily goes into the possession of another, The ownership of the articles or goods is in one person and the possession in another for example leaving a car for repair, cloth to a batailor, parcel to TCS, goods in a cold store. The delivery of goods by one person the bailor to another the bailee for some purpose, upon a contract that they shall, when purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering it. It is formed by the delivery of personal property, without transfer of title by the bailor to the bailee usually under an agreement. Obligations and duties arise from the bailment relationship. (Mallor, 2004)


Since it is possible not possible for every person to do everything by itself, he allows the person to be represented in the performance of person’s legal acts by another and gives acts done by such representative the same effect as they would have done it by self. One of the most common, important and pervasive legal relationship is that of the agency; relationship between agent who agrees to represent or act for the other principal. The principal has the right to control the agent’s conduct in matters entrusted to the agent, and the agent must exercise its powers for the benefit of the principal only. The principal, by using agents, can conduct multiple business operations simultaneously in various locations for example corporate officer. (Bushman, 2007)


Roles And Functions Of Law In Business And Society. (2014). Retrieved from 123HelpMe.com: http://www.123HelpMe.com/view.asp?id=167183 Boyce, R. M. (1982). Criminal Law. A sophisticated analysis of the purpose, definition, and classification of criminal la and development of the common law, 1-46. Bushman, M. (2007). The Role and Functions of Law in Business and Society. Retrieved from http://www.associatedcontent.com/article/139783/the_role_and_functions_of_law_in_business.html Clark, C. E. (1942). Yale Law School Legal Scholarship Repository, 14. Fletcher, G. (2000). Rethinking Criminal Law. A challenging discussion of the history and philosophy of criminal law. Gross, H. (1979). A theory of criminal law. A highly sophisticated discussion of the philosophical basis of criminal law. Hall, J. (1960). A detailed discussion of the theory of criminal law and the basic elements of a crime. General Principles of Criminal Law, 1-359. LaFave, W. (2000). Criminal Law. A comprehensive purpose, classification, and common law foundation of criminal law, 1-198. Lexiz. (2001). A good introduction to the nature of criminal law and to the common law and statutes. Understanding Criminal Law, 1-32. Mallor, J. B. (2004). Business Law: The Ethical, Global, and E-commerce Environment, 13th Edition. University of Phoenix Resource. . Reference.com. (2007). Retrieved from http://www.reference.com/search?q=law
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