Law shapes politics, economics, history and society in many different ways and serves as a mediator of relations between people. In particular, it relates to people’s rights and obligations with each other in areas such as contracts; property (i.e., ownership of tangible items and intangible assets such as money and stocks); intellectual property; insurance; and torts. The law is also an instrument for the administration of justice and provides a framework for social change.
Laws are made and enforced by political authorities, which vary from nation to nation. In some nations, military power or political dominance is the main factor that determines law; in others, it’s a matter of cultural and religious traditions or the relative strength of the judiciary. Most nations follow one of two legal traditions, common law and civil law. The common law tradition is found in the United States, Canada, Australia and most of New Zealand; the civil law tradition is followed by almost all of Europe and a number of Asian countries.
A common view is that laws are made to control behaviour or prevent harm. A corollary to this is that a law is effective only when it can be enforced. This can be achieved by a combination of legislation and judicial review through the doctrine of stare decisis, in which decisions by higher courts “bind” lower courts to assure that similar cases reach similar results. Alternatively, some scholars have proposed that law is a natural phenomenon, shaped by custom and culture and emerging out of the collective consciousness.