Law is a system of rules created and enforced by social or governmental institutions to regulate behavior. Its precise definition is subject to debate.
A core aspect of a law is that it must be clear enough for people to understand and comply with, and it must be stable over time. This enables people to predict the legal consequences of their actions, which is necessary for planning and coordinated action in society. A law must also be just, meaning that it treats people fairly regardless of their wealth or status. It must also ensure that there are checks on government power, such as a free and independent press. It must also make the transition of power in a society subject to the rule of law.
Depending on the culture and context of a country, different areas of law exist to meet specific social needs. For example, contract law regulates agreements to exchange goods or services and includes everything from buying a bus ticket to trading options on the derivatives market. Tort law provides compensation when someone is harmed, from car accidents to defamation. Family law covers marriage and divorce proceedings, and property law defines people’s rights and duties toward their tangible possessions, including their homes and bank accounts.
The underlying assumptions of any particular legal system influence the way that laws are created and applied. For example, a law may be designed to serve certain social goals such as maintaining peace, keeping the status quo, promoting justice, protecting minorities against majorities, or providing for orderly social change. A law may also be designed to protect private interests or promote economic growth, for example through the property rights of business owners.
In modern societies, laws are usually created by a legislative branch of government through statutes, or by the executive through decrees and regulations. Laws may also be established through the doctrine of precedent, where courts bind lower courts by their decisions in order to assure that future cases reach similar conclusions. Private individuals may also create legally binding contracts, such as arbitration agreements that adopt alternative ways of resolving disputes to standard court litigation.
Many philosophies of law have developed to explain the nature and purpose of a law, from positivist approaches that emphasize its rationality to moral approaches that emphasise the importance of fairness and decency in a law’s enforcement. Some theorists have argued that a law should incorporate more than just a list of commands. A ‘law of liberty’, for instance, might include the right to pursue happiness and freedom of expression as fundamental liberties, while a ‘law of morality’ would prohibit insider trading, or even cruelty to animals. This broader conception of a law is sometimes called soft law.