This is an excerpt from the book ‘Business Law for Managers’ written by Anurag K Agarwal. He has graduated from Harvard Law School and was the first recipient of the Marti Mannariah Gurunath Outstanding Teacher Award at Indian Institute of Management, Ahmedabad. Agarwal conducts executive education for the government as well as public and private sector companies.
In this book, he explains why it is crucial for a business manager to understand the nitty-gritty of laws, even though they can have diverse academic qualifications.
We don’t realize the importance of law in business. But with all the factors that come with business, come some legal factors that managers must be aware of.
This is what the author of Business Law For Managers aims to achieve. To spread. So here are some tips for business managers, about a wide range of topics including contracts, indemnity, bankers and banking and arbitration.
- Business managers must have a good understanding of the fundamental principles of contracts, both general and special, and try to appreciate their application in different jurisdictions. At times, it has been observed that realistic application is very well guided by the norms and practices evolved over decades and centuries and the theoretical reading simply may not be very helpful.
- Managers have to be extra cautious while dealing with contracts of special nature as they may have certain peculiar features, very different from general contracts. For instance, there is only one-sided consideration in a gratuitous bailment, whereas the bailee is responsible for a safe keeping and taking reasonable care of goods handed over.
- Business managers need to be realistic in borrowing and using borrowed money. Lavish, unnecessary expenditure doesn’t help. It sounds clichéd and old-fashioned, but it is the bitter truth that mostly leads to a financial crunch.
- Bank officials should consider decision-making as an objective task, with information applicability making subjectivity minimal.
- Getting subject matter experts as arbitrators are one of the most important characteristics of arbitration as a dispute resolution method.
Business Law for Managers is a hands-on guide to understanding business law is for anyone and everyone looking to run a legal-hurdle-free business.