Law is a system of rules created and enforced by social or governmental institutions to regulate behavior. From a societal viewpoint, it reflects a moral code of justice, fairness, order, and honesty. From a judge’s point of view, it includes policy, statutes, and guidelines.
Contract law, for example, regulates agreements to exchange goods or services. It covers everything from buying a bus ticket to trading options on a derivatives market. Property law defines people’s rights and duties toward tangible things, such as land or buildings (real property) and movable objects like computers, cars, or jewelry (personal property). Intellectual property law encompasses patents, copyrights, trademarks, and trade secrets. Criminal law, labour law and commercial law all regulate different aspects of the business of government.
Law has numerous functions, including keeping the peace, maintaining the status quo, preserving individual rights, and promoting social change. The specifics of these functions vary from nation to nation, and some systems of law are more effective than others in serving them.
Laws can be made by a legislature and enforced through statutes; by the executive through decrees and regulations; or established through precedent, usually in common law jurisdictions. A legal system’s ability to serve its principal functions depends on its capacity to protect against anarchy and Hobbesian war of all against all, preserve individual rights, and facilitate reasonable planning by individuals over time.