Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation

Meaning and Sources of Law in India

Updated 10 October 2026 · Fact-checked

Law is a body of rules made or recognised by the State, which people must follow and which courts enforce. Its main sources in India are the Constitution, statutes (legislation), delegated legislation, judicial precedents and customs. To answer MCQs, match the clue in the question to the right source.

Understand Meaning and Sources of Law

Law is a set of rules that govern how people and organisations behave in society. The State makes or recognises these rules, and it enforces them through courts and other authorities. If you break a legal rule, you can face a penalty or be forced to put things right.

The main purpose of law is to keep order, protect rights, settle disputes and set a fair standard for dealings between people. In business, law tells you what makes a contract valid, what a seller must deliver and what happens on a breach.

The sources of law are the places from which law comes. In India there are several. The Constitution is the supreme source, and every other law must conform to it. Statutes (also called legislation or Acts) are laws passed by Parliament or a State Legislature. This is the most important source today.

Delegated legislation means rules, regulations, orders and bye-laws made by an authority such as a Ministry, to which the legislature has given power through an Act. Judicial precedents are earlier court decisions that later courts follow, especially those of higher courts. Customs and usages are long-standing practices that people treat as binding and that courts accept if they are reasonable and not against statute.

Law is commonly divided into public law (the relationship between the State and individuals, such as constitutional and criminal law) and private law (relations between individuals, such as contract and property law). Keep this split in mind. Questions on it are usually direct.

Key formulas to remember

Meaning of law: Law = rules made or recognised by the State + enforced by the State; Both parts matter. A mere moral rule is not law because the State does not enforce it.
Main sources of law in India: Constitution, Statutes, Delegated legislation, Judicial precedents, Customs and usages; Learn this list in order. Questions often ask which item is NOT a source.
Public law vs private law: Public law: State vs individual. Private law: individual vs individual; Constitutional, criminal and administrative law are public. Contract and property law are private.
Delegated legislation: Parent Act gives power → authority makes rules, regulations, bye-laws; It must stay within the power given by the parent Act. Otherwise a court can strike it down.
Hierarchy of authority: Constitution > Statutes > Delegated legislation; A lower source cannot override a higher one.

How to solve Meaning and Sources of Law questions

Most questions on this topic ask you to identify a source or a type of law from a short clue. Use the same routine each time.

1Read the question and underline the clue word, such as 'Act', 'rules made under', 'court decision' or 'long-standing practice'.
2Decide whether the question asks for a meaning, a source, or a classification (public or private).
3Match the clue to the source: Parliament or Legislature passed it means statute. Rules under an Act means delegated legislation. Earlier court ruling means precedent. Age-old accepted practice means custom.
4For classification, ask who the parties are. State against a person means public law. Person against person means private law.
5Check for words like 'NOT', 'except' or 'incorrect' and reverse your logic if they appear.
6Eliminate options that are not legal sources, such as opinions, moral teachings or newspaper reports, then mark the best fit.

Quickest way: Clue-to-source matching

When to use it: Use this for any one-line MCQ asking which source or type of law applies. It takes about 30 seconds.

Spot the maker: legislature, authority, court or people.
Legislature means statute. Authority under an Act means delegated legislation. Court means precedent. People's practice means custom.
For public or private law, spot the parties. The State involved means public.
If two options look right, pick the one that is more specific to the clue.
Never leave it blank. There is no negative marking, so guess after eliminating.

Common mistakes in Meaning and Sources of Law

Treating delegated legislation as a separate Act of Parliament.
Both are written laws, so they look the same.
Fix: Remember that delegated legislation is made by an authority using power given by an Act. Parliament does not pass it as a fresh Act.
Saying every custom is law.
Students overstate the importance of custom.
Fix: A custom is accepted only if it is long-standing, reasonable, certain and not against a statute or public policy.
Mixing up public law and private law.
Criminal cases feel like a fight between two people.
Fix: In a crime, the State prosecutes, so criminal law is public law. Contract law is private law.
Calling moral or religious rules 'law' in the legal sense.
Ethics and law seem similar in daily life.
Fix: Law needs State backing and enforcement. Morals alone do not have it.
Thinking precedents bind all courts equally.
Students ignore court hierarchy.
Fix: A decision of a higher court binds the lower courts. A lower court's decision does not bind a higher court.

Worked examples

Example 1

The Ministry of Finance issues rules under powers given by an Act passed by Parliament. These rules are an example of which source of law? (A) Custom (B) Judicial precedent (C) Delegated legislation (D) Constitution

Show the solution

Find the maker: a Ministry, not Parliament itself.
Find the power: the Ministry acts on powers given by an Act.
Rules made by an authority under power given by an Act are delegated legislation.
Custom is a people's practice, precedent is a court decision, and the Constitution is the supreme document. None of these fit.

Answer: (C) Delegated legislation

Example 2

Which of the following is an example of private law? (A) Criminal law (B) Constitutional law (C) Law of contract (D) Administrative law

Show the solution

Private law deals with relations between individuals.
Criminal, constitutional and administrative law all involve the State and its powers, so they are public law.
The law of contract governs agreements between persons, such as a buyer and a seller.
So the law of contract is the only private law option.

Answer: (C) Law of contract

Exam tips

Learn the five sources as a list and the one-line clue for each. Most questions test only recognition.
Watch for 'NOT' and 'except' in the question. Read the stem twice before marking.
For public and private law, always identify the parties first.
Do not spend more than a minute on a theory MCQ. You have 50 questions in one hour.
Remember the Constitution is the supreme source, and no ordinary law can override it.

Practice questions from Primary and Subordinate Legislation

Meaning and Sources of Law in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Meaning and Sources of Law: frequently asked questions

What are the main sources of law in India?

The main sources are the Constitution, statutes passed by Parliament and State Legislatures, delegated legislation, judicial precedents and customs. The Constitution ranks highest. Other sources must fit within it.

What is the difference between public law and private law?

Public law covers the relationship between the State and individuals, such as constitutional and criminal law. Private law covers relations between individuals, such as contract and property law.

What is delegated legislation in simple words?

It is law made by an authority, such as a Ministry, under power given by an Act of the legislature. It takes the form of rules, regulations, orders or bye-laws. It must stay within the limits of the parent Act.

Is custom a valid source of law?

Yes, but only if the custom is long-standing, reasonable, certain and not against a statute. Courts may accept such a custom as binding.