Reasons why the law is important in commercial transaction

Highlight reasons why law is important in commercial transactions?

  • It is a standard setting and control mechanism. Law set standards of behavior and conduct in various areas such as manufacturing construction, trade e.g. the law also acts as a control mechanism of the same behavior.
  • It protects right and enforces duties by providing remedies whenever these rights or duties are not honored.
  • It promotes peaceful co-existence/maintenance of law and order i.e. prevents anarchy.
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