Legal Definitions - de mercatoribus

De mercatoribus is a historical Latin term that refers to two specific English statutes, or laws, enacted during the reign of King Edward I in the late 13th century. These laws were significant because they provided a powerful legal mechanism for creditors, particularly merchants, to secure debts owed to them in commercial transactions.

Specifically, the statutes de mercatoribus allowed a creditor to take possession of a business debtor's land and hold it as security until a trade-related debt was fully repaid. This measure was designed to protect those who extended credit in commerce, ensuring they had a strong means of recovering their money if a debtor defaulted.

Here are a few examples illustrating how these statutes would have applied:

• Imagine a prosperous wool merchant named Thomas in 13th-century England. He sells a substantial amount of raw wool to a cloth manufacturer, Eleanor, on credit, expecting payment within six months. When Eleanor's business experiences unforeseen difficulties, she is unable to pay Thomas by the agreed deadline.

  How it illustrates the term: Under the statutes de mercatoribus, Thomas, as the creditor, could legally claim possession of Eleanor's land (perhaps the land where her workshop stood or her personal estate) and hold it as security. This arrangement would continue until Eleanor either paid the debt in full or a suitable agreement was reached, ensuring Thomas had a strong means of recovering his losses from this commercial transaction.

• Consider a wealthy London merchant, Sir Richard, who provides a significant loan to a younger, ambitious merchant, John, to finance a trading voyage to the continent. The agreement specifies that the loan is for the purchase of goods for resale. Unfortunately, John's ship encounters a storm, and much of his cargo is lost, leaving him unable to repay Sir Richard.

  How it illustrates the term: Because this debt arose directly from a commercial venture (trade), the statutes de mercatoribus would empower Sir Richard to take possession of John's land, such as his family estate or other properties, as collateral. This legal provision offered Sir Richard a powerful safeguard for his investment, making sure that John's land could be held until the trade-related loan was settled.

• A timber merchant, William, supplies a large quantity of oak and pine to a shipbuilder, Robert, for the construction of a new trading vessel. Robert agrees to pay upon the ship's completion and sale. However, due to a downturn in trade, the ship remains unsold for an extended period, and Robert cannot pay William for the timber.

  How it illustrates the term: In this scenario, the debt owed by Robert to William is clearly a commercial debt for materials used in trade. The statutes de mercatoribus would allow William to assert a claim over Robert's land, such as the shipyard itself or other properties owned by Robert, to secure the outstanding payment. This legal recourse provided William with a strong incentive for Robert to find a way to settle the debt, as his land would remain encumbered until payment was made.