The law is a set of rules that a society or government develops to deal with crime, business agreements and other issues. It is enforced by a controlling authority through penalties like fines or imprisonment. Law is also a way of life, based on certain principles of morality and justice. The law shapes politics, economics and history in many ways.
The precise nature of the law is a topic of long-standing debate, with philosophers dividing into two main camps. Utilitarians, such as John Austin, argue that the law consists of commands, backed by the threat of sanctions, from a sovereign to his subjects, who habitually obey them. The natural school, exemplified by Rousseau, suggests that laws reflect innate, unchanging principles of morality.
Law is an important part of every society. It establishes standards, maintains order, resolves disputes and protects liberties and rights. It is the foundation for democracy, trade and economic development. It is also the basis for stability in a state, where individuals can plan their affairs with reasonable confidence that they will not be subject to sudden changes in the law.
The law encompasses a large number of fields, ranging from civil law to criminal law, labour law to environmental law. Banking law sets minimum standards for bank capital, while securities regulation outlines best practices in investment. Taxation law regulates the economy, and water law, energy law and telecommunications are examples of regulated industries. Contract law governs business relationships, and there are many styles of contracts, each enforceable under different legal systems. Tort law compensates people who are harmed by another, while property law covers the possession of land and other assets.