What is Mercantile Law or Commercial Law - tradecareer

 Mercantile Law or Commercial Law

It is that branch of law which is applicable to or concerned with trade and commerce in connection with various mercantile or business transactions. 

Mercantile Law is a wide term and embraces all legal principles concerning business transactions.

 The most important feature of such a business transaction is the existence of a valid agreement, express or implied, between the parties concerned.

                                                                              

The following are the main sources of Mercantile Law in India:

1. English Mercantile Law: 

The Indian Mercantile Law is mainly an adaptation of English Mercantile Law.

However, certain modifications wherever necessary, have been incorporated in it to 

provide for local customs and usages of trade and to suit Indian conditions.

 Its dependence on English Mercantile Law is so much that even now in the absence of 

provisions relating to any matter in the Indian Law, recourse is to be had to the 

English Mercantile Law.

2. Acts enacted by Indian Legislature or Statute Law:

The Acts enacted by the Indian legislature from time to time which are important for 

the study of Indian Mercantile Law include,

 (i) The Indian Contract Act, 1872,

(ii) The Sale of Goods Act, 1930, 

(iii) The Indian Partnership Act, 1932, 

(iv) The Negotiable Instruments Act, 1881,

 (v) The Arbitration and Conciliation Act, 1996,

 (vi) The Insurance Act, 1938

3. Judicial Decisions: 

* Judges interpret and explain the statutes. Whenever the law is silent on a point, 

the judge has to decide the case according to the principles of justice, equity and 

good conscience. 

It would be accepted in most systems of law that cases which are identical in their facts, should also be identical in their decisions. 

That principle ensures justice for the individual claimant and a measure of certainty 

for the law itself. 

                                                                         

* The English legal system has developed a system of judicial precedent which 

requires the extraction of the legal principle from a particular judicial decision 

and, given the fulfilment of certain conditions, ensures that judges apply the 

principle in subsequent cases which are indistinguishable. 

The latter provision being termed “binding precedents”. Such decisions are called as precedents and become an important source of law

4. Customs and Trade Usages: 

Most of the Indian Law has been codified. But even then, it has not altogether done 

away with customs and usages. Many Indian statutes make specific provisions to the 

effect that the rules of law laid down in a particular Act are subject to any special 

custom or usages of trade.