Commercial Law and Preliminaries of Auditing · Ch 1 — Introduction to Law
Definition of Law
Definition of Law
Every organised society needs a set of rules to hold it together, and the word "law" in its legal sense refers to the body of rules that a State recognises and enforces to regulate the conduct of the people living within it. Jurists have defined law in slightly different ways, but the core idea is the same across every definition.
The English jurist John Austin, in his "command theory," described law as "a command issued by a sovereign, backed by a sanction, and habitually obeyed by the people." In Austin's view, law is not merely advice or a suggestion — it is an order from a political superior (the sovereign/the State) to a political inferior (the citizens), and disobedience attracts a penalty.
Another widely cited definition, from Sir John Salmond, calls law "the body of principles recognised and applied by the State in the administration of justice." Salmond's definition shifts the emphasis slightly — from "command" to "what the courts actually apply" — but still ties law firmly to the machinery of the State.
Putting these together in plain language: law is a set of rules of human conduct, made or recognised by a competent authority (the State), that is uniformly applicable and enforceable through courts, and whose breach invites a legal consequence. This is what separates "law" from mere morality, religion, or social custom — those may guide behaviour, but only rules backed by State enforcement qualify as law in the strict legal sense. This distinction matters a great deal for a WBCHSE Commercial Law and Preliminaries of Auditing student: the whole subject that follows — contracts, sale of goods, company law, negotiable instruments — is really the study of how the State's law regulates one specific slice of human conduct, namely trade and commerce.
Two classic definitions of law
- John Austin: Law is a command of the sovereign, backed by a sanction, habitually obeyed.
- Sir John Salmond: Law is the body of principles recognised and applied by the State in the administration of justice.
WBCHSE's Commercial Law and Preliminaries of Auditing syllabus draws on the same Indian business-law and auditing principles that CBSE/NCERT Business Studies and Accountancy students meet — a firm grasp of what "law" itself means is the foundation every later unit in this course (Contract, Sale of Goods, Company Law, and more) builds on.
A command issued by a sovereign political authority, backed by a sanction (penalty), which the people habitually obey.
The body of principles recognised and applied by the State in the administration of justice through its courts.