First Principles of Business Law

4.1. The rule of law

The power to govern (sovereign power) can either be absolute (unregulated) or it can be subject to legally binding rules and procedures. In Australia, the power to govern is regulated by law.

The laws that determine how the government of a state is organised are generally found in the constitution of that state. A constitution provides the foundations on which the machinery of government is built. It describes and empowers the organs of a government, identifying their composition, their functions and their relationships.

In this section we will examine the constitutional arrangements in Australia.

The Commonwealth Parliament in Canberra