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Tuesday, September 23, 2014

Difference between Act & Rule


Key Difference:* An act is an official copy of a statute or regulation
that is initially presented in the form of a bill and after being verified
it is passed in the process of a legislature. An act is enforced in a legal
manner. In context to an act, rules define the guidelines that must be
followed for the successful implementation of the act. 
Both the words can often create confusion as they both are widely used in
context to laws. Therefore, it is important to understand the differences
between the two. 
An act can be described as a legal document or a statute that is passed by
a legislator. It passes through various stages of review and approval in
the Legislative Assembly. It contains certain regulations that are
identified as important for the society. It can be a product of a decision
or determination of a sovereign, a legislative council, or a court of
justice. Acts, if passed, are then turned into laws. Thus, it refers to a
document that is used to record a fact, something said or done. 
 
A bill is the draft of a legislative proposal, which passes through various
stages in order to become an act. It can be viewed as one of the sources of
law. The acts are used for the creation of new laws or changing an existing
law. The process of an act to become a law may vary from one country to the
other. 
On the other hand, rules are simple guidelines that are provided for the
smooth functioning of an organization and to maintain a healthy environment
among its people.Dictionary.
com
defines ‘rule’ as: 
- A principle or regulation governing conduct, action, procedure,
arrangement
- The customary or normal circumstance, occurrence, manner, practice,
quality, etc.
- To control or direct; exercise dominating power, authority, or
influence over; govern.
- To decide or declare judicially or authoritatively
- To make a formal decision or ruling, as on a point at law. 
 
Rules can be enforced at any level. For example, a teacher might form a
rule stating that every student in her class needs to show her homework
everyday. The rules of these types are not rigid and depends upon the
enforcing entity that how strict it is and what steps it has taken to
ensure the proper implementation of the rules. 
Therefore, we can say that acts are laws, but they are the ones that are
formed after passing from the legislator, whereas rule defines the
procedures of performing a task. The acts generally contain rules. For
example, The Environmental Management Act of Netherlands contains rules on
levies, contributions and compensation. Another example: under the
Securities Act of 1933 of U.S., according to rules 505 and 506 of
Regulation D, a company may sell its securities to the "accredited
investors." 
Thus, we can say that when we compare them in context to laws, then an act
is the law that is passed by a process of legislature. On the other hand,
rules are guidelines that are defined in the acts that must be followed for
the enforcement of the act. In general, a rule can be described as a guide
for conduct or an action.