The government advisory body said the current framework, covered by more than 40 laws, was "out-dated and flawed".
Instead, it said there should be a single piece of legislation so people were clear about their rights.
The report is the first of two reviews ministers will use to reform social care in England in the coming years.
An independent commission has also been set up to look at how social care - which is currently means-tested - should be funded.
It is due to report in July and will be followed by a white paper at the end of this year and legislation in 2012.
Wales is looking at its social care provision separately.
There is almost universal agreement that social care needs reforming, as councils struggle to meet rising demand because of the ageing population amid cuts in funding.
'Dog's breakfast'The Law Commission report has been widely welcomed by charities, who say it provides a good blueprint for reform of the system.
Michelle Mitchell, of the charity Age UK, described the recommendations as a "one-off opportunity to replace this dog's breakfast with a clear, logical and consistent framework".
Social care law has developed "piecemeal" since the National Assistance Act in 1948, the Law Commission said. There are now over 40 separate laws and thousands of pages of guidance.
Continue reading the main storyThis report provides foundation for the most significant single reform of social care law in 60 years”End Quote Paul Burstow Care services minister This has resulted in a system that is confusing for users, and at times contradictory, the report said.
For example, people with conditions that vary over time such as bi-polar disorder or dementia can in theory be excluded from care.
Meanwhile, while there is no law placing a duty on councils to support elderly people, they do have legal obligations to look after those with disabilities and mental health problems.
The recommendations call for a duty for councils to assess the needs of carers, and say the NHS and local government should work together more closely.
Frances Patterson, the commissioner who led the review, said: "Today signals a significant step in moving us closer to a clearer and more coherent framework for adult social care."
Care services minister Paul Burstow said the recommendations would be carefully looked at.
He added: "This report provides foundation for the most significant single reform of social care law in 60 years."
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