The term "Law" is derived from the German word "Lag" meaning fixed or evenly. Code means "a systematic collection of statutes, body of laws, so arranged as to avoid inconsistency and overlapping".
It is the compilation, promulgation, collection and systematization of the body of law in a coherent form by an authority in a state competent to do so.
Act means the rules of human conduct, which are provided by the authoritative political institution and the violation of which is considered a fine or penalty.
According to Salmond, "codification means a reduction in the overall Corpus Juris as far as practicable, in the form adopted by the law."
Bentham very strongly pleaded legislation and codification. He says, "complete digest as such is the first rule. Anything that is not in the code should not be a law."
For codification, certain background and a certain stage of social development are necessary. Pound outlined the following important conditions that lead to the codification.