Which type of law governs the relationship between private individuals or companies?

I believe the answer is: C. Civil law

In civil law, the convicts do not necessarily have to face jail time since both parties involved could settle the case by making an arrangement outside the court of law. Example of civil law cases would be when a person violate a contract to do a certain job.

Depending on which country you talk about it's either the Civil law, as in many European countries, where there are pre-written rules or common law where the decisions are made while judging cases - so UK and it's former colonies.