The reason why laws are set in place is because people need to know what is right and wrong.
No that is not necessarily so. Right and wrong according to whom? What is right and wrong? If the law has any purpose(s) at all it must be to protect individual liberty and personal autonomy.
Consider, the tort of battery which is aimed at protecting the personal autonomy of the individual. Its purpose is to recognize the right of each person to control his or her body and who touches it, and to permit damages where this right is violated. The compensation stems from violation of the right to autonomy, not fault.
"Any touching of another?s body is, in the absence of lawful excuse, capable of amounting to a battery and a trespass." [1]
"Every person?s body is inviolate, and that any touching of another person, however slight may amount to a battery" [2]
"the law cannot draw the line between different degrees of violence, and therefore totally prohibits the first and lowest stage of it; every man?s person being scared, and no other having a right to meddle with it, in any the slightest manner." [3]
This idea that a person's body is inviolate is one of the fundamental pillars of individual liberty.
Where your proposal goes wrong is the next step which is the Executive Power. How would you administer the law? Surely if you told people they could do whatever they wanted as long as it did not harm others in any way... there would be utter confusion and mayhem. Therefore you would fail to administer the law properly.
The principles of individual liberty inform what the laws ought to be, and what they ought not to be.
Judicial Power given to courts to enforce the law
No, that is not correct. The job of enforcing the law, is one for law enforcement (police). The role of the judiciary is to decide cases according to the law.
"The duty of a court is not to make law, or debate the merits of particular laws, but to do justice according to law. The oath taken by a judge of the Supreme Court of New South Wales includes the words ?I will do right to all manner of people after the laws and usages of this State without fear or favour, affection or ill will.? Thus judges swear to apply the existing laws and usages, not to unsettle them by critical debates about them and speculations about their future, and certainly not to develop new laws and usages. It is legislatures which create new laws.
Judges are appointed to administer the law, not elected to change it or undermine it."[4]
The purpose of the rule of law is to protect individual liberty -
"The rule of law prevents citizens being exposed to the uncontrolled decisions of others in conflict with them. Powerful citizens are not permitted to use self-help against other citizens so far as their arbitrary might permits. Officers of the State are not permitted to imprison or otherwise deal forcibly with citizens or their property merely because they think it is their duty to do so. Mobs are not able to loot or lynch their enemies at will. Indeed Saint Augustine thought that without a rule of law States themselves were nothing but organised robber bands. The rule of law operates as a bar to untrammelled discretionary power....
The rule of law preserves for citizens an area of liberty in which they can live their lives free from the raw and direct application of power. It creates a framework within which the creative aspects of human life can thrive. The rule of law dilutes power; it diffuses it; and yet it also makes it more efficient. The rule of law prevents police officers trespassing on and seizing private property or holding citizens without trial or other hearing; yet it permits and facilitates the procurement of evidence in a regular way with a view to the convincing demonstration of criminal guilt in due course" [5]
The rule of law curbs the power of government to prevent it from becoming absolute and arbitary. As Chief Justice Murray Gleeson said, 'The importance of the rule of law lies partly in the power it denies to people and to governments, and in the discipline to which it subjects all authority.'[6]
[1]
In re F (Mental Patient Sterilisation) [1990] 2 AC 1 at 73 per Lord Goff of Chievely
[2]
Collins v Wilcock [1984] 1 WLR 1172 at 1177-8 per Lord Goff (then Robert Goff LJ)
[3]
Blackstone?s Commentaries, 17th ed, 1830, Vol 3, p 120
[4] Justice John Dyson Heydon, "Judicial Activism and the Death of the Rule of Law"
http://www.austlii.edu.au/nz/journals/OtaLRev/2004/2.html[5] Justice John Dyson Heydon, "Judicial Activism and the Death of the Rule of Law"
[6] Murry Gleeson, "Courts and the Rule of Law"
http://www.hcourt.gov.au/speeches/cj/cj_ruleoflaw.htm