Northwestern Law

Law is a system of rules created and enforced by way of social or governmental institutions to control habits, with its precise definition a matter of longstanding debate. State-enforced legal guidelines may be made by a bunch legislature or by a single legislator, leading to statutes; by the executive by way of decrees and regulations; or established by judges via precedent, usually in common law jurisdictions. Private people could create legally binding contracts, including arbitration agreements that undertake other ways of resolving disputes to plain court litigation. The creation of laws themselves may be influenced by a constitution, written or tacit, and the rights encoded therein.

Coase used the instance of a nuisance case named Sturges v Bridgman, where a noisy sweetmaker and a quiet doctor were neighbours and went to court to see who should have to move. So the law should pre-empt what would occur, and be guided …