Inhoudsopgave
School of Legal Thought ......................................................................................................................... 3
Characteristic of Laws: ........................................................................................................................... 3
Sources of Law ....................................................................................................................................... 3
1. Customary Law: Unwritten rules ................................................................................................ 3
2. Legislation .................................................................................................................................. 4
3. Judicial decisions: A ruling made by a judge or a court that helps to resolve a legal dispute or
issue. .................................................................................................................................................. 4
4. Treaties (verdragen .................................................................................................................... 5
5. General Principles of Law: .......................................................................................................... 6
Common Law VS Civil Law ...................................................................................................................... 7
Q2: Explain why Eichmann was not an adherent of the naturallaw school of legal though. .......... 9
Legal Interpretation ............................................................................................................................... 9
Principles to Deal with Rule Conflicts ................................................................................................. 9
Legal syllogism.................................................................................................................................. 10
IRAC as a way of Legal Reasoning ..................................................................................................... 11
Case Law Donoghue vs Stevenson ....................................................................................................... 12
The Vendanta vs Lungowe case............................................................................................................ 12
Types of Laws ....................................................................................................................................... 13
Corporate Law .................................................................................................................................. 13
Description of Business Entity Forms ................................................................................................... 15
Advantages and disadvantages ........................................................................................................ 16
What is a corporation? ......................................................................................................................... 18
Formation of a Corporation .............................................................................................................. 18
Registration of a Corporation ........................................................................................................... 18
Constitutional documents of a company .......................................................................................... 20
Mandatory v Default Rules ............................................................................................................... 23
The Five Characteristics of Corporations .............................................................................................. 24
1. Legal Personality....................................................................................................................... 24
2. Limited Liability ........................................................................................................................ 25
3. Transferability of shares ........................................................................................................... 25
What is the relationship between the nominal value of a share and the market value? ............. 25
Capital terminology! ......................................................................................................................... 26
4. Delegated management under a board structure (boards) ...................................................... 27
Board models ............................................................................................................................... 28
1
, 5. Investor ownership (shareholders) .............................................................................................. 30
Friedman about investor ownership ............................................................................................ 30
Robert Reich ................................................................................................................................. 31
Shareholder model: ...................................................................................................................... 32
Stakeholder model: ...................................................................................................................... 32
Case Salmon vs Salmon ........................................................................................................................ 33
Richard A. Booth ........................................................................................................................... 34
Eden S. Blair and Tanya Marcum: ................................................................................................. 34
Sole proprietorship............................................................................................................................... 35
Partnerships ......................................................................................................................................... 36
Exception – Lifting Corporate Veil .................................................................................................... 38
Prest vs Petrodell CASE ........................................................................................................................ 39
Corporate law performs two general functions: .............................................................................. 40
Principal-agent theory .......................................................................................................................... 41
AGENCY PROBLEM ........................................................................................................................... 41
DISNEY .............................................................................................................................................. 42
KAHN VS LYNCH CASE ....................................................................................................................... 43
Agency costs: .................................................................................................................................... 44
Legal Strategies .................................................................................................................................... 45
Agency problems in startups ............................................................................................................ 47
EXTRA: QUESTIONS TUTORIALS............................................................................................................ 49
Q1: Read Amazon.com, Inc. Articles of Association and answer the following questions: ............... 49
Q2 Who is Jeff Bezos in Amazon? ..................................................................................................... 49
Q3 : Corporate law ........................................................................................................................... 50
a. Which business form is most appropriate for this business idea? ............................................ 51
2
,Lec 1 + Tut 1
School of Legal Thought
- Natural Law: This school of thought argues that the law should be based on a higher moral
authority, such as God or nature. It posits that there are certain fundamental human rights
that are inherent and cannot be taken away by any government or legal system.
- Legal positivism: This school of thought is based on the belief that law is a set of rules and
regulations created by the government. It argues that the law is not inherently moral or just,
but rather derives its legitimacy from the authority of the state.
- Others
Characteristic of Laws:
1. Collective enforcement: Collective enforcement means people working together to make
sure that the law is followed, and their rights are protected.
2. Positive law: Positive law is like a set of rules that the government creates and enforces.
These rules can be things like traffic laws, taxes, and other things that people must follow.
They are made by people in power and can change over time. If someone breaks these rules,
they can be punished by the government.
3. Legal certainty: The idea that the law should be clear, predictable, and consistent so that
people can understand what is expected of them. This helps to prevent confusion,
misunderstandings, and disputes.
For example, let's say there is a law that prohibits driving over the speed limit. If the speed limit is
clearly posted, and everyone knows what it is, then drivers can be confident that they are not
breaking the law as long as they follow the posted speed limit. However, if the speed limit is not
clearly posted, or if the law is applied inconsistently, drivers may be unsure of what is expected of
them, leading to confusion and potential legal problems.
Sources of Law
1. Customary Law: Unwritten rules
Customary law is a type of law that comes from the way people have always done things in their
community. There are Mutual expectations that after some times are accepted as binding. (Het
wordt van je verwacht, want het is altijd zo geweest)
Consist of two things
1. States practice: Behavior/action what states do and speak.
2. Opinio juris: States verbal, or material acts have to be accepted as a binding law by the rest
of the international community.
Example of opinion juris: the worlds accept and believed that it is legal for a state to act in self
defense.
The unwritten rules can later be codified.
3
, 2. Legislation: legislation means the rules that governments make to help regulate things in
society, like what people can or can't do, or how businesses should behave. It's like a big set
of instructions that everyone has to follow.
For example, if the government makes a law that says it's illegal to steal, then everyone has to follow
that rule. Breaking the rules can have serious consequences, like getting in trouble with the police.
3. Judicial decisions: A ruling made by a judge or a court that helps to resolve a legal
dispute or issue.
It's like a decision made by a teacher when there is a problem in the classroom. The judge or
court considers all the facts and evidence presented in the case, and then decides based on what
they believe is fair and just. The decision is usually final, and everyone involved in the case must
follow it.
- Een precedent is een gebeurtenis waarop men zich kan beroepen als een nieuw dergelijk
geval zich voordoet om zelfde gevolgen/sancties aan te binden. In dit geval is het een
rechterlijke uitspraak die relevant is.
Judicial precedent refers to the principle that a court's decision in a case becomes a binding
authority for future cases with similar legal issues.
Consist of two things
1. Ratio decidendi: The legal reasoning or principle that forms the basis of a court's decision in a
case. In other words, it's the part of the court's decision that is essential to the outcome of
the case and sets a precedent for future cases with similar legal issues. It's like the main
reason or logic behind the judge's decision.
2. Obiter dicta are comments or remarks made by a judge during a case that are not essential to
the outcome of the case. They are like extra comments that the judge makes about the case
or the law in general, but they don't form part of the binding precedent. Obiter dicta may be
persuasive, but they are not legally binding.
- Ratio decidendi is the legal principle or reasoning that is essential to the court's decision and
sets a precedent for future cases.
- Obiter dicta are comments made by a judge that are not essential to the outcome of the
case and are not legally binding.
Reasoning with Rules and Cases
Analogical reasoning in judicial decisions involves comparing the current case with past cases that
are similar in some way. By looking at how past cases were decided, judges can use analogies to help
them interpret the law and make a decision that is consistent with legal precedent. This allows
judges to make decisions that are grounded in the law and that have a better chance of being upheld
in the future.
Case-Based Reasoning is using past cases to help make decisions in new cases. In judicial precedent,
judges use past cases to guide their interpretation of the law and decision-making. This promotes
consistency and relies on a well-established body of legal principles.
4
School of Legal Thought ......................................................................................................................... 3
Characteristic of Laws: ........................................................................................................................... 3
Sources of Law ....................................................................................................................................... 3
1. Customary Law: Unwritten rules ................................................................................................ 3
2. Legislation .................................................................................................................................. 4
3. Judicial decisions: A ruling made by a judge or a court that helps to resolve a legal dispute or
issue. .................................................................................................................................................. 4
4. Treaties (verdragen .................................................................................................................... 5
5. General Principles of Law: .......................................................................................................... 6
Common Law VS Civil Law ...................................................................................................................... 7
Q2: Explain why Eichmann was not an adherent of the naturallaw school of legal though. .......... 9
Legal Interpretation ............................................................................................................................... 9
Principles to Deal with Rule Conflicts ................................................................................................. 9
Legal syllogism.................................................................................................................................. 10
IRAC as a way of Legal Reasoning ..................................................................................................... 11
Case Law Donoghue vs Stevenson ....................................................................................................... 12
The Vendanta vs Lungowe case............................................................................................................ 12
Types of Laws ....................................................................................................................................... 13
Corporate Law .................................................................................................................................. 13
Description of Business Entity Forms ................................................................................................... 15
Advantages and disadvantages ........................................................................................................ 16
What is a corporation? ......................................................................................................................... 18
Formation of a Corporation .............................................................................................................. 18
Registration of a Corporation ........................................................................................................... 18
Constitutional documents of a company .......................................................................................... 20
Mandatory v Default Rules ............................................................................................................... 23
The Five Characteristics of Corporations .............................................................................................. 24
1. Legal Personality....................................................................................................................... 24
2. Limited Liability ........................................................................................................................ 25
3. Transferability of shares ........................................................................................................... 25
What is the relationship between the nominal value of a share and the market value? ............. 25
Capital terminology! ......................................................................................................................... 26
4. Delegated management under a board structure (boards) ...................................................... 27
Board models ............................................................................................................................... 28
1
, 5. Investor ownership (shareholders) .............................................................................................. 30
Friedman about investor ownership ............................................................................................ 30
Robert Reich ................................................................................................................................. 31
Shareholder model: ...................................................................................................................... 32
Stakeholder model: ...................................................................................................................... 32
Case Salmon vs Salmon ........................................................................................................................ 33
Richard A. Booth ........................................................................................................................... 34
Eden S. Blair and Tanya Marcum: ................................................................................................. 34
Sole proprietorship............................................................................................................................... 35
Partnerships ......................................................................................................................................... 36
Exception – Lifting Corporate Veil .................................................................................................... 38
Prest vs Petrodell CASE ........................................................................................................................ 39
Corporate law performs two general functions: .............................................................................. 40
Principal-agent theory .......................................................................................................................... 41
AGENCY PROBLEM ........................................................................................................................... 41
DISNEY .............................................................................................................................................. 42
KAHN VS LYNCH CASE ....................................................................................................................... 43
Agency costs: .................................................................................................................................... 44
Legal Strategies .................................................................................................................................... 45
Agency problems in startups ............................................................................................................ 47
EXTRA: QUESTIONS TUTORIALS............................................................................................................ 49
Q1: Read Amazon.com, Inc. Articles of Association and answer the following questions: ............... 49
Q2 Who is Jeff Bezos in Amazon? ..................................................................................................... 49
Q3 : Corporate law ........................................................................................................................... 50
a. Which business form is most appropriate for this business idea? ............................................ 51
2
,Lec 1 + Tut 1
School of Legal Thought
- Natural Law: This school of thought argues that the law should be based on a higher moral
authority, such as God or nature. It posits that there are certain fundamental human rights
that are inherent and cannot be taken away by any government or legal system.
- Legal positivism: This school of thought is based on the belief that law is a set of rules and
regulations created by the government. It argues that the law is not inherently moral or just,
but rather derives its legitimacy from the authority of the state.
- Others
Characteristic of Laws:
1. Collective enforcement: Collective enforcement means people working together to make
sure that the law is followed, and their rights are protected.
2. Positive law: Positive law is like a set of rules that the government creates and enforces.
These rules can be things like traffic laws, taxes, and other things that people must follow.
They are made by people in power and can change over time. If someone breaks these rules,
they can be punished by the government.
3. Legal certainty: The idea that the law should be clear, predictable, and consistent so that
people can understand what is expected of them. This helps to prevent confusion,
misunderstandings, and disputes.
For example, let's say there is a law that prohibits driving over the speed limit. If the speed limit is
clearly posted, and everyone knows what it is, then drivers can be confident that they are not
breaking the law as long as they follow the posted speed limit. However, if the speed limit is not
clearly posted, or if the law is applied inconsistently, drivers may be unsure of what is expected of
them, leading to confusion and potential legal problems.
Sources of Law
1. Customary Law: Unwritten rules
Customary law is a type of law that comes from the way people have always done things in their
community. There are Mutual expectations that after some times are accepted as binding. (Het
wordt van je verwacht, want het is altijd zo geweest)
Consist of two things
1. States practice: Behavior/action what states do and speak.
2. Opinio juris: States verbal, or material acts have to be accepted as a binding law by the rest
of the international community.
Example of opinion juris: the worlds accept and believed that it is legal for a state to act in self
defense.
The unwritten rules can later be codified.
3
, 2. Legislation: legislation means the rules that governments make to help regulate things in
society, like what people can or can't do, or how businesses should behave. It's like a big set
of instructions that everyone has to follow.
For example, if the government makes a law that says it's illegal to steal, then everyone has to follow
that rule. Breaking the rules can have serious consequences, like getting in trouble with the police.
3. Judicial decisions: A ruling made by a judge or a court that helps to resolve a legal
dispute or issue.
It's like a decision made by a teacher when there is a problem in the classroom. The judge or
court considers all the facts and evidence presented in the case, and then decides based on what
they believe is fair and just. The decision is usually final, and everyone involved in the case must
follow it.
- Een precedent is een gebeurtenis waarop men zich kan beroepen als een nieuw dergelijk
geval zich voordoet om zelfde gevolgen/sancties aan te binden. In dit geval is het een
rechterlijke uitspraak die relevant is.
Judicial precedent refers to the principle that a court's decision in a case becomes a binding
authority for future cases with similar legal issues.
Consist of two things
1. Ratio decidendi: The legal reasoning or principle that forms the basis of a court's decision in a
case. In other words, it's the part of the court's decision that is essential to the outcome of
the case and sets a precedent for future cases with similar legal issues. It's like the main
reason or logic behind the judge's decision.
2. Obiter dicta are comments or remarks made by a judge during a case that are not essential to
the outcome of the case. They are like extra comments that the judge makes about the case
or the law in general, but they don't form part of the binding precedent. Obiter dicta may be
persuasive, but they are not legally binding.
- Ratio decidendi is the legal principle or reasoning that is essential to the court's decision and
sets a precedent for future cases.
- Obiter dicta are comments made by a judge that are not essential to the outcome of the
case and are not legally binding.
Reasoning with Rules and Cases
Analogical reasoning in judicial decisions involves comparing the current case with past cases that
are similar in some way. By looking at how past cases were decided, judges can use analogies to help
them interpret the law and make a decision that is consistent with legal precedent. This allows
judges to make decisions that are grounded in the law and that have a better chance of being upheld
in the future.
Case-Based Reasoning is using past cases to help make decisions in new cases. In judicial precedent,
judges use past cases to guide their interpretation of the law and decision-making. This promotes
consistency and relies on a well-established body of legal principles.
4
