Introduction to the -LEGAL SYSTEMCommercial law isn't just about formal rules and courts; it's connected to ethics too. Even on a remote island without written laws or courts, people still have basic moral principles. Our modern laws have developed from these early ethical guidelines. Laws range from morally apparent(you may not kill someone) to morally abstract(you have the right to dignity, which all other persons shall respect). The law has two important jobs: © to make sure things are clear and certain, and © to create a structured way for people to interact with each other Law formally defined: law is described as a set of rules that govern human behavior, recognized as binding by the state and enforced when necessary. 2 2 : In the business world, laws play a crucial role. © They set basic standards, © acknowledge different types of property, © support business agreements, © form the basis of corporate,activities, © make government regulation of commerce legitimate, and © provide a way to solve disputes officially. + The Constitution (1996) contains the important values that our society should follow, shared not only in South Africa but soba, and more. Courts can review any law and check if it aligns with the Constitution's values. 5 Pif a law is found to be *unconstitutional,” the courts can invalidate suspend it, requiring Parliament to amend it accordingly. 4Law recognizes property: © Physical Property - tangible © Intellectual Property(poems, songs, etc...) © Incorporeal(bitcoin) © Intangible Property - shares The law controls what we can do with our property and how we can use it. For instance, even though you own a cricket bat, you can't swing it randomly because your rights should respect others’ rights to their property and personal space. Law is intrinsic to the commercial environment and trade. It ensures that trade agreements are honored. If any party breaches the agreement, the aggrieved party can seek enforcement through the courts. Courts facilitate the resolution of commercial disputes. Example: If X i and Y have a trade agreement for canned food, and one party doesn't fulfill their part, the other party can go to court to enforce the agreement. In law, there are two forms of‘persons: natural persons and juristic persons. © Both have legal rights and duties, but juristic persons have some limitations. Ee © Juristic persons in commercial activities include companies, close corporations, and trusts. hold intellectual property rights, etc. 2 Juristic persons have a separate legal identity from their individual members. Specific laws govern how commercial activities take place. For example, labor laws dictate the maximum hours an employee-can wi in a day. Laws also play a role in promoting social objectives; suchCommercial players’ rights and duties must be enforced if one party fails to meet its obligations in an agreement. Disputes are handled through the court system, with specific laws governing the litigation process. South Africa has a hierarchical court system with lower and higher courts, Courts have the power to make final decisions that bind the parties in the litigation.Caser for study: i Cusp saesloray v nleaiirauemnldcd(iar: Hoe a aire a Acd carts ty Ve lente A anitcan have eee ert lis ee ee eee ie spores tereslUees mca eee ao va aseaaneee (or tue ver wating? uldem the eepimantiy decides tx SUNUb a ft 9] eth lel rales that prosible clalewe Feerab aa yscon fx ioalstst ae Ca sect ats 2. Case involving Abstract Legal Rights: Facts: A country introduces a new constitutional amendment recognizing the right to a clean and healthy environment Issue: How will this abstract right be practically enforced? Outcome: The courts interpret the right to a clean environment and begin enforcing it by reviewing and striking down laws that harm the environment. 4 3. Case involving the Role of Law in Business: © Facts: Company’X enters into a contract with Company Y for the supply of raw materials. \Company Y breaches the contract by delivering inferior quality goods. — issue: Can Company X seek legal redress for the breach of contract? 4] out te /Qutcome: Company X files a lawsuit against Company Y, seeking compensation for damages caused hy the breach of contract. The court reviews the evidence and awards @ remedy to Company X. : : jal w Rat) 4. Case involoing Property Rights and Intangible Property: Fic of yon ae ele earner eee ; ni Jand valuable in the market Z Someta oCin ne srnea ciple vein et Uu nation over the computer program? : The software company registers the program's copyright and obtains legal.’ {ts intellectual property rights, preventing others from using eproducing the software without permission. Case involving Constitutional Rights and Courts' Power: jcts: A new law is passed that restricts freedom of speech for certain groups of people. 1s the new law in line with the constitutional right to freedom of speech? come: Citizens affected by the law challenge its constitutionality in court. The couCarer for study: Cass intbisiag Jacuile varieng ana ls gal eertenaily: Haciss Company Aca xegisicred corpuratton” enters vid w cantrach with Compuny Ay The tonteadl & shel by Congans 4 jibe: Can Corbany » auc company 2 fe ha peneh come Gees Comets» (iss wtauailt equian Company 4 as aur gery Gongs As Tagal puCpiTaLiOe(h aspatats (romitie (eatoluaar onus” cliouigg Cemrane’s eaursut fara aeteen: 7. Case involving Commercial Laws and Labor Regulations: Facts: Employes X files a complaint against Company Z, claiming they were forced to work exoessive hours. Issue: Did Company Z violate labor laws regarding working hours? Outcome: The labor court examines the evidence and finds Company Z guilty of violating lahor regulations. The court orders compensation for Employee X and imposes fines on the company. s : 8. Case involving Legal Enforcement of Social Goal ‘Pacts: Company C is accused of discriminating against certain race groups in its hiring ‘practices, ix Issue: Did Company C violate the Broad-Based Black Economic Empowerment (BBBEE) & althct requirements? Bal w, Outcome: The labor commission investigdtes and finds that Company C did not meet the tn Rat. BBBEE requirements. The company is required to implement corrective measures to Sh of yeu Promateietusoe hiring practices, somethiy9, Case involving Court System and Hierarchy of Courts: Blackthy Racts: A dispute arises between Company M and Company’N over a breach of a commercial ontract. Fissue: Which court should hear the dispute between the two companies? wOutcome: The dispute is first heard in a lower court (e.g., District Court) but one of th BB pgrties appeals to a higher court (e.g., High Court) for a review of the ‘decision. The)” Gehuigher court makes the final binding decision, ina id out te/ eae esis en eelereaee Gia meer (ek nenieres Picts: Company P and Company Q enter into a contract for the purchase. and supply achinery. Company P fails to deliver the machinery on time. “\ hrne: Can Company Q enforce ite right to receive the machinery throwghithe lg stem? ny Mutcome: Company Q takes Company P to court, seeking enforcement of tl Ferm’. The court prders Company P to fulfil its contractual obligations ahd acl eed. . \ a tag a KS "3 wvLaw determines how citizens should behave and the associated punishments for violations. Without laws, there can be no legal transgressions. Jurisprudence deals with legal topics and the study of law. © Jurists ask questions about the nature and purpose of the law. © Lawyers and judges use jurisprudence to interpret complex laws. South Africa is a constitutional state. The constitution contains a set of principles by which South Africa is governed by. : + Section 2 of the Constitution declares it as the supreme law of the Republic. d out te/ © Any law or conduct contrary to the Constitution is invalid. ie © Obligations imposed by the Constitution must be fulfilled. al W, Bn Rat\ cofyed & The government is barred from acting against the Constitution. sometlti;Constitutionalism is a doctrine that establishes a government's authority © No other law can contradict the Constitution. Constitutional Supremacy.” It is closely related to the concept of limited Sgovernment, aiming to prevent arbitrary actions by the government. To “Achieve this, constitutionalism relies on mechanisms like the separation ‘Sof_powers and the rule of law Bouth Africa follows the principle of separation of powers. © The state is divided into three branches: = legislature, = executive, and Sai ry. . \ fo Sepapat ion of powers helps prevent arbitrary government actio| 4 y wpproval from all three branches for the creation, istration of laws Sa.+ The legislature (Parliament) is responsible for making laws (primary legislation). © Parliament creates laws through the passage of "Acts." © After enacting a law, relevant Ministers create regulations to support and implement the act. + The executive implements the laws made by Parliament. © It consists of the President, ministers, and deputy ministers. © The public administration is composed of individuals working in government departments and supports the executive in carrying out its duties \ * The judiciary resolves legal disputes between litigants. ‘ {9 The court system consists of lower and higher courts, © Lower Courts: small claims court and magistrates’ courts (Regional and District). © Higher Courts: High Courts (including Specialist Courts), the Supreme Court of Appeal (SCA), and the Constitutional Court, © It ensures that law influences and governs society, constraining behavior, including that of the government, © All citizens are equal before the law. © The government is subject to the same laws as the citizens. institutions. Due process requires legal proceedings to follow established rules for protecti private rights.(where a procedure is prescribed, it must be followed). _ © Laws must be written, known, and applied impartially through an establish procedural process. )+ Law distinguishes between Public and-Private legal relationships based on the opposing parties. © Public legal relationships involve the o Private legal relationships involve © Public relations favor the state's power over a private individual. © Private relations aim for an equal position between the parties (theoretically). The state has the authority to enforce the law through various measures. 5 Individuals have the right to expect lawful, reasonable, and procedurally fair actions by the state (due process). Affected individuals have the right to receive written reasons for state actions. S If an individual believes a government action was unreasonable or unlawful, they can seek a judicial decision by approaching the courts. . In the private sphere, individuals exercise their rights and fulfill their duties. vie Parties can seek judicial assistance to enforce their rights=* against others' obligations. a Some individuals, like minors, may need assistance from = or parents in exercising their rights.+ Real rights can be enforced against anyone and pertain to a person's control over their property within the confines of the law. In contrast, personal rights involve the performance of a specific person and can only be enforced against that individual. © Examples of Personal Rights: * A contract for personal services: If Person A hires Person B to paint their house, Person A has a personal right to expect Person B to fulfill the contract and complete the painting job. * Personal injury claim: If Person Cis injured due to the negligence of Person D, Person C has a personal right to seek compensation from Person D for the harm caused. o Examples of Real Rights: - = Ownership of property: If Person E owns a piece of land, they have a real right to use, sell, or lease the property as they see fit, as long as it complies with relevant,laws and regulations. = Mortgage on property: If Person F takes a loan from a bank and pledges their house as collateral, the bank gains a real right over the property, allowing them to sell the house to recover th loan amount if Person F defaults on payments. egal liability is the condition of = being bound to carry out a legal duty, and = to bear the consequences of failing to do so. ‘© Parents have a legal duty to care for their children. e two types of legal liability: civil liability and criminal+ In private legal relationships (Civil Law), liability takes three forms: = contractual liability, * delictual liability (dealing with causing harm), and * liability based on unjustified enrichment. © Contractual liability arises from breaching a contract, © Delictual liability results from causing harm or damages to another person or property, and © Liability based on unjustified enrichment occurs when a party benefits at the expense of another without legal justification. Examples for each form of liability: Contractual Liability: Person A hires Person B to deliver goods by a certain date, but Person B fails to do so, resulting in financial losses ‘an extra amount of money to Person F while settling a debt.\Rerso becomes unjustly enriched by receiving more money than owed, ai * \e Person E has a legal claim to recover the excess payment, aeCriminal liability arises when an individual commits an act or fails to perform one, in violation of a law that forbids or commands it, and is subject to punishment upon conviction. The distinction between civil and criminal liability is significant, but the three categories of civil liability are not mutually exclusive and can coexist within the same set of facts. Delictual liability refers to civil liability arising from causing harm or damages to another person or property, as mentioned previously The Bill of rights in the constitution is another way an individual is shielded from the state, Hence, should the state violate your rights, you can take it to the court. In legal relationships, your rights are not absolute. They are limited. The State can limit the right if it is in the interest of society and it is done in a way that is open and transparent. A curator is a person that would look after your legal affairs. * A legal liability comes into operation by law. For-example, when a child is born, a legal duty is automatically placed on the parents t look after the child.Let’ consider a hypothetical case crimotring a connercial thansaction gont whang. ‘+ Person A (a natural person) and Company B (a juristic person) entered into a contract for the delivery of goods. The contract specified delivery date, payment terms, and quality standards for the goods. + However, Company B failed to deliver the goods on the agreed date, which caused financial losses to Person A’s business (contractual liability). Furthermore, Company B had been acting negligently in their business operations, which led to the defective production of the goods they were supposed to deliver (delictual liability). + As a result of these failures, Person A was unable to fulfill their obligations to their customers, leading to reputational damage and financial losses (unjustified enrichment), Person A decided to take legal action against Company B to seek remedies for both contractual and delictual liabilities. ( B had intentionally tampered with safety equipment, leading to defective production and causing harm to other employees. Criminal charges were brought against those responsible for these acts (criminal liability). Dy Hk Ngaath eficel cases CC ice the teraction. of mations ligal concepta: © somethiz + Contractual liability: Breach of the contract for non-delivery of goods and financial losses incurred. - Delictual liability: Negligence leading to defective production and reputational 2, damage. =P B. Liability based on unjustified enrichment: Company B's failure to deliver goods caused Person A's financial losses and unjust enrichment of Company B, We R Criminal liability: Employees’ intentional tampering with safety equipment and ~~ euustny haviicto atkerac leadiua te avinonel charters ahPractice Questions on Case Leeraria Question 1 What type of liability arises when an individual commits an act that violates a law and is subject to punishment upon conviction? : |) Contractual lability x 5) Delietual liability ) Criminal ability D) Unjustified enrichment Answer: C) Criminal Question 2 In the hypothetical case, what was the primary legal Issue between Person A and Company B? |) Contractual liability for non-payment of goods 5) Delietval liability for reputational damage 0) iminal ability for defective production D) Contractual lability for non-delivery of goods © Answer: D) Contractual lability for non-delivery of goods | question's: | which of the following statements best defines the concept of due process in the legal context? 5) The legal principle that requires legal proceedings to follow established rules and principles C) The legal requirement for the state to enforce laws against individuals who violate them, D) The tegal obligation to separate powers between the legislative, executive, and judicial -EQuestion 4 a jin the hypothetical case, what is the term used to-describe civil liability afising from causing. arm or damages to another person or property? ) Unjustified enrichment B) Contractual lability ity Delictual Hiab hat kind of legal relationship involves the State asthe opposing party and puts the full mighvot he state against a private individual? e ) Civil legal relationship at B) Criminal legal relationship ¥