The value of law: understanding the purpose of laws and legal systems

The rule of law is one of the four fundamental values of British society, along with democracy, individual liberty, and mutual respect and tolerance for those of different faiths and beliefs. Its value around the world is virtually incalculable, underpinning all societies and communities that work to create – and maintain – fairness, peace, and prosperity. 

In the United Kingdom, the rule of law can be traced back as far as 1215 with the signing of the Magna Carta. This historic document paved the way for the common law legal system as we know it in the 21st century, helping to enshrine the fundamental principles of equality and order that people have come to expect.

Through the rule of law, and its legal systems and services, citizens can reasonably expect:

• Access to a functioning justice system that upholds legal standards and applies to all citizens, entities, and institutions.
• Accountable, transparent governments and public institutions that are free of corruption or corrupt regimes and state powers that act solely in their own interests.
• A healthy democracy and political economy.
• Fair trials.
• Open and transparent law-making.
• Respect for fundamental human rights.
• Predictability and precedents, whether a case is in adjudication, with arbitrators, or in the Supreme Court.

In fact, according to the World Justice Project, research shows that the rule of law correlates to:

• higher economic growth.
• greater peace.
• less inequality.
• improved health and well-being outcomes.
• more education.

Why do we need laws?

Laws are the rules that regulate conduct and behaviour within society. They apply to all citizens and are enforceable by a governmental authority, with penalties in place for people who contravene the law.  

According to eNL Legal, laws help ensure that the victims of crime receive justice, and that criminals receive the relevant penalty for their wrong-doing, with an end goal of rehabilitation and the prevention of reoffending:

“Many believe that a society without laws would be a society in a state of chaos,” eNL Legal states. “Without clear authority figures and punishments in place to deter people from, for example, stealing, anarchy would ensue. Any person could walk into your house and take your belongings with no consequence. Someone could take another individual’s life and nothing would happen.”

What is the difference between a law and a rule?

Rules and laws have several similarities and a few key differences. Both, for example, outline permissions, expectations, and standards for people’s behaviour or actions, and there are typically repercussions for not meeting – or flouting – these expectations. When it comes to laws, however, rules are written by governments and courts, enforced by institutions such as the police, and the repercussions for not following the law come with legal consequences. 

So while breaking a rule, such as not meeting a required dress code, can carry a consequence – in this example, not being allowed to enter a particular establishment – breaking a law, such as physically harming another person, comes with a much more serious consequence, such as arrest, prosecution, jail time, and so on.

What are the limits of the law?

The United Kingdom does not have a statute of limitations for serious criminal offences. It does, however, have time limits in place, after which certain types of court action cannot be taken. 

There are three legal systems in the UK – one for England and Wales, one for Scotland, and one for Northern Ireland – and each has its own point of view on time limits. For example, in England and Wales, the Limitation Act 1980 sets a one-year limitation period for offences such as libel or slander. This means that if someone feels they are a victim of libel or slander, they have 12 months from the date of the alleged offence to start court proceedings.

What are the advantages of the rule of law?

The advantages of the rule of law are far-reaching within societies. Through fair laws and an impartial judiciary, citizens are assured stability, equality, and open access to justice when needed. 

According to the UN Global Compact, this “ultimately leads to respect for human rights and the environment. It also helps lower levels of corruption and instances of violent conflict.”

What are some benefits of having laws?

Much like the advantages of the rule of law, the benefits of having laws are numerous:

• People have a starting point of knowledge in terms of what is and isn’t acceptable in society, with rules covering everything from speed limits to finances.
• When laws are broken, there are systems in place to ensure that victims receive justice (for example, in the form of compensation) and offenders face consequences.
• Writing rules into law ensures that they are robust. But legal systems can also adapt to societal changes. For example, there was a time when it was illegal for women to vote or same-sex couples to marry, but these rules have changed alongside society and its steps towards greater social justice.

Economic value of the law

In recent years, economists and legal experts working with LegalUK have conducted an economic analysis to highlight the economic value of England’s system of law and legal framework. This theory of value is illustrated using a variety of metrics and differentials, and highlights the globalisation of English law. For example:

• £250 billion of global merger and acquisition transactions were estimated to be governed by English law in 2019.
• English law governs many insurance contracts globally, worth £80 billion in gross written premiums.
• English law is the preferred legal framework for global commercial maritime contracts – and the UK maritime sector contributes £15 billion annually to the UK economy.