Question

What are the similarities and differences between the four systems of law that serves as the basis for the world's legal systems?how do domestic laws affect international business?

Answer 1

Around the world there are in general four basic types of legal systems: civil law, common law, statutory law, religious law or some combinations of these legal systems. Countries adopt legal systems which are inline with the cultural, political, religious or ideological beliefs of the country. Among them the civil legal system & the common legal systems are generally the most widely adopted system in the world.

The general difference between the common and civil law are that, civil law is guided by a written constitution which is not always the case in common law. Judicial decision act as binding for future similar cases in common law which is not the case in civil law as civil law as mentioned earlier is guided by constitution and not by past judicial decisions. Writing by legal scholars decides the judicial system decisions in civil law. This is not the case in common law where judge can use his authority irrespective of writings of judicial scholars.

Freedom of contract is limited in civil legal systems which us quite extension commonlaw system as very fee provisions in common law system related to companies and contractual agreements. Usually the contracts are subject to private law and local courts in the respective jurisdictions. Thus even in international business, the domestic courts of the area of operation can impact the legalities concerning the business operation.