Classification of law - Business Environment

Classification of law
Laws relating to both individuals and organisations can be classified in a number of ways: international and national, public and private, criminal and civil. In practice there are no hard and fast rules to classification and some categories may overlap (e.g. where a person’s behaviour is deemed to infringe different areas of law).Nevertheless, distinguishing laws in these terms serves as an aid to explanation and commentary, as well as helping to explain differences in liabilities and in legal remedies in England and Wales (e.g. a child under the age of 10 cannot be held criminally liable).
Public and private law
Put simply, public law is the law which concerns the state, whether in international agreements or disputes or in the relationship between the state and the individual. Thus public law consists of international treaties and conventions, constitutional law, administrative law and criminal law. In contrast, private law is law governing the relationships between individuals and comprises laws in respect of contract, tort, property, trusts and the family.
Criminal law
Criminal laws relate to a legal wrong (criminal offence) a breach of a public duty, punishable by the state on behalf of society. Decisions on whether or not to bring a prosecution in a particular instance are taken by the Crown Prosecution Service (in England and Wales) and the matter may or may not involve trial by jury, according to the seriousness of the alleged offence and the plea of the defendant(s). In some cases, the consent of both magistrates and defendants is required for a case to remain in the magistrates’ court although this may change in the very near future. Moreover, while the criminal process may also arise from a private prosecution, such prosecutions are rare and, in these cases, the Attorney-General (the government’s senior law officer) has the right to intervene if he or she sees fit.
A tort is a civil wrong other than a breach of contract or a breach of trust and is a duty fixed by law on all persons (e.g. road users have a duty in law not to act negligently). The law of tort, therefore, is concerned with those situations where the conduct of one party threatens or causes harm to the interests of another party and the aim of the law is to compensate for this harm. The most common torts are negligence,nuisance, defamation and trespass.
A trust is generally defined as an ‘equitable obligation imposing on one or more persons a duty of dealing with property, over which they have control, for the benefit of other persons who may enforce the obligation’. This property may be in the form of money or stocks and shares or in other types of asset, particularly land, where trusts have become a very common way of permitting persons who are forbidden to own legal estates in land to enjoy the equitable benefits of ownership. Partnerships, for example, cannot hold property as legal owners, so often several partners will act as trustees for all the partners (as a partnership has no separate corporate identity it cannot own property). Similarly, minors may not hold legal estates, so their interests must be protected by a trust, administered by an individual or an institution.

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