Business Law in Papua New Guinea (PNG) focuses on the legal rules that govern business activities, commercial transactions, and organizational operations. It combines statutory law (laws made by Parliament) and common law (inherited from English law and applied through court decisions).
Understanding business law is essential for entrepreneurs, students, and professionals to operate legally, avoid disputes, and ensure business success in PNG.
🎯 Course Objectives
By the end of this course, students should be able to:
- Understand the PNG legal system and sources of law
- Explain contract law and its application in business
- Identify different business structures in PNG
- Understand consumer protection and trade practices
- Apply employment and labour laws
- Recognize dispute resolution processes.
📚 MODULE 1: LEGAL SYSTEM OF PAPUA NEW GUINEA
🔑 Key Concepts
- Constitution of PNG – Supreme law of the country
- Underlying Law Act 2000 – Recognizes customary law
- Statute Law – Laws passed by Parliament
- Common Law – Derived from English legal system
⚖️ Court System in PNG
- Village Courts
- District Courts
- National Court
- Supreme Court
📌 Importance
Business activities must follow the legal framework to ensure fairness, protection, and enforcement of rights.
📚 MODULE 2: LAW OF CONTRACT
📝 Definition
A contract is a legally binding agreement between two or more parties.
🔑 Essential Elements
1. Offer
2. Acceptance
3. Consideration (value exchanged)
4. Intention to create legal relations
5. Capacity of parties
⚠️ Breach of Contract
Occurs when one party fails to perform their obligation.
💡 Remedies
- Damages (compensation)
- Specific performance
- Termination
📌 PNG Application
Contracts are widely used in:
- Employment agreements
- Business sales
- Supply contracts
📚 MODULE 3: BUSINESS ORGANIZATIONS IN PNG
🏢 Types of Business Structures
1. Sole Trader
- Owned by one person
- Simple but unlimited liability
2. Partnership
- Two or more owners
- Shared profit and responsibility
3. Company (Corporation)
- Registered under the Companies Act
- Separate legal entity
- Limited liability
📌 Regulatory Body
- Investment Promotion Authority (IPA) .
📚 MODULE 4: CONSUMER LAW & FAIR TRADING
🛒 Key Principles
- Protection against misleading conduct
- Fair pricing and product safety
- Right to quality goods and services
📌 Relevant Laws in PNG
- Consumer protection regulations
- Trade practices guidelines.
📚 MODULE 5: EMPLOYMENT LAW IN PNG
👷 Key Areas
- Employment contracts
- Minimum wage regulations
- Workplace safety
- Employee rights and termination.
📌 Important Law
- Employment Act (PNG).
📚 MODULE 6: PROPERTY LAW & BUSINESS ASSETS
🏠 Types of Property
- Real property (land/buildings)
- Personal property (equipment, goods)
📌 PNG Context
Land ownership is unique:
- Customary land (majority of land in PNG)
- State land.
📚 MODULE 7: DISPUTE RESOLUTION
⚖️ Methods
1. Negotiation
2. Mediation
3. Arbitration
4. Court litigation
📌 Importance
Helps resolve business conflicts efficiently and maintain relationships.
🎓 CONCLUSION
Business Law in Papua New Guinea provides a framework for conducting fair and legal business activities. Understanding these principles helps individuals and organizations minimize risk, comply with regulations, and promote sustainable economic growth.
📌 Teaching Tips
- Use real PNG case studies
- Encourage group discussions
- Apply practical examples (local businesses)
- Conduct mock contract drafting exercises
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📊 Suggested Learning Activities
- Case study analysis
- Role-playing negotiation
- Business registration simulation
- Legal problem-solving exercises.
End of Course Material. This course is to be used only under approval from the writer.
Author: Wamsi Norbert (PNGCTTI-Directo
r. 2026. Banz. Jiwaka Province. PNG.
