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17 views

S1 Notes

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gshan.yi01
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NANYANG TECHNOLOGICAL UNIVERSITY

NANYANG BUSINESS SCHOOL

AB1301 - BUSINESS LAW


SEMESTER 1 2021/2022

Seminar 1: Society, Business & the Law

Key Learning Points:


Be familiar with the following basic legal concepts to facilitate the study of substantive rules of law:
• Meaning and function of “the law”
• Who makes and applies the law in Singapore
• The distinguishing features of our legal system
• Sources of law in Singapore
• The different classifications of law
• How to use case law and statutes to decide legal issues

Contents

A. Definition & Function of Law


B. Making & Application of the Law
C. Singapore Legal System
D. Sources of Law
E. Classifications of Law
F. Statutory Interpretation

A. Definition & Function of Law


‒ Basic definition and function of law
 Law is essentially a set of rules for a society to function properly and peacefully. In
addition, with respect to business specifically, laws introduce certainty thereby
reducing the risks associated with running a business.

B. Making & Application of the Law


 There are two major sources of law in Singapore. They are legislation and case law
or common law.

1. Executive
- Runs country, set policies, implement law passed by parliament
(Eg. President, Cabinet, Attorney General)

2. Legislative
-Power to make law enacts legislation (Written law)
-Legislative process whereby legislation is enacted
-Bill is read 3 times before voting. If successful, written law made by parliament is
legislation=statue=act of parliament
(Eg. President, Parliament)

3. Judiciary

1
-Sits in courts of Singapore
-Interpret and administrate the law (Applies Law)
-Decision becomes case-law (aka precedent)
(E.g. CJ, Judges, Judicial commissioners, districts judges, magistrates)

C. Singapore Legal System


‒ Common law legal system
‒ Comparison with civil law legal system

Comments:
‒ Students should
 know the basic features of the common law and civil law legal systems, and
 be able to compare and contrast the basic features of the two legal systems

D. Sources of Law (6 sources)

1. Constitution
- Supreme law of the land, prevails over all other laws
-Lays down structure of the government
-Basic principle: Freedom of religion, speech, expression and equality

2. Acts of Parliament (Written Law)

3. Subsidiary Legislation (Subordinate Legislation)


- Laws made under authority delegated by Parliament (Minister to Committees)
-Form of written law

4. Case Law
-Past cases decided by judges
-Stare Decisis (Theory of Binding Precedence)
i. Vertical: Lower courts have to follow decision of higher courts
ii. Horizontal: Court of Appeal not bound by own previous decisions, adapting to new
changes/trends

2
5. Customary Law- Trade Customs

6. International Law
-Law made applicable through international treaties, mutual agreements by countries to abide
and enact.

Application of English Law


2nd Charter of Justice 1826 made English Law as 27/11/1826 applicable in Singapore (General
Reception of English Law)
- Conditions of General Reception
 Only of General policy and application (Must be relevant, London Town Planning
Act not brought in
 Subject to local legislation

Subsequently…..
Application of English Law Act enacted, as there is confusion over the interpretation and
application of law to SG
-S3. English common law (case law) and equity continues to apply
-S4. English Acts listed in 1st Schedule or specified in any other written law are applicable
-S5. No other English Act applicable

Obiter Dicta

 Mere saying by the ways, or a chance remark based on hypothetical facts.

 Comments/opinion made by judge but not used in judgement.

 Not binding on lower courts, merely of persuasive authority


E.g ‘I am not sure this is a case of fraud but…’

Question: Are relevant facts sufficiently similar for previous case to apply? What was
the ratio decidendi in the previous case?

3
CASE LAW TECHNIQUE
1. From cases found in law reports
-Format of Law reports: Name of Case, Summary and Judgement (>10 pages)

2. Cases become law because of the doctrine of Stare Decisis, that

1) binds the lower court of the same hierarchy to the decision of a higher court where the
relevant facts are the same

2) Courts not bound by its own prior decision, if it fits change the principle of law to make a
better decision.

3) Only the Ration Decidendi of the earlier case is binding


-Reason for deciding
-Rule of Law upon which decision/judgment is made

STATUTORY INTERPRETATION
Sole object of statutory interpretation: TO DETERMINE INTENTION OF PARLIAMENT OF
ENACTING THE STATUTE. What effect do they want to have?

4
1. Interpretation Act
 Contains definition of words frequently used in statutes
 S9A: can use ‘extrinsic materials’ if statute is ambiguous OR giving the words their
ordinary meaning would lead to absurd or unreasonable result.

Extrinsic Materials are materials outside statute. (E.g. Parliamentary debates, what they said
and what they actually meant, intention)

2. Rules to guide statutory interpretation


 Literal Rule
o If statute is clear & unambiguous, word of statute would be given grammatical
meaning, not deviating from the literal meaning.
 Golden Rule
o If statute has >1 interpretation (ambiguity), should consider one that avoids
absurd result
 Mischief Rule
o To interpret ambiguous statute, should consider mischief that statute is trying
to cure. Statutes are unclear and capable of >1 interpretation

 Statute to be read as whole


o Unity of an act
o Every clause needs to be construed with reference to the context and other
clauses of the Act, to make a consistent enactment of the whole statute or
series of statutes relating to the subject-matter. It is the most natural and
genuine exposition of a statute.

 Contextual Interpretation
o Look into the context of the case/ norm instead of literal meaning.
o Prevent it from being outdated

 Ejusdem Generis (Follows same type of things that came before it ‘of the same kind’)
o Statute forbids ‘apples, oranges, bananas, papayas and other food’; any other
food should be treated as any other fruits.

 Precedence of statutes over case law


o Statute law (Laws in books)
 Dictates what the law is.
 Written law that has been enacted into force by the legislature.

o Case law (Judge-made law)


 Set of court decisions in PRIOR cases
 Defines the limitations of the particular law and therefore gives it
meaning.
 Binding rulings from the courts when administering the statutory law

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