Legal Definitions - in re mercatoria

The Latin term in re mercatoria translates to "in a mercantile transaction" or "in a commercial matter."

This legal principle acknowledges the unique nature of business dealings. It means that agreements, documents, or actions taken within the context of a commercial or trade transaction may be treated differently by the law, often with fewer strict formal requirements than other types of legal matters. This flexibility is designed to facilitate the speed, efficiency, and practicalities inherent in commerce and trade, recognizing that business people often need to act quickly without always consulting legal professionals for every detail.

Here are some examples illustrating this concept:

• Verbal Agreement Between Businesses: Imagine a wholesale produce buyer urgently calls a farmer to secure a large quantity of fresh vegetables for an unexpected demand from a supermarket chain. They quickly agree over the phone on the type, quantity, price, and delivery schedule. While many contracts require a written form to be enforceable, this verbal agreement, made in re mercatoria, might be considered legally binding. The law often recognizes the necessity for rapid, less formal agreements in the fast-paced world of commercial transactions.

• Email Exchange Forming a Contract: A software development company and a client negotiate the terms for a custom application through a series of emails. The final email from the client states, "We agree to proceed with the development as per the specifications and pricing discussed in our previous emails." Even without a formal, signed contract document, this email exchange, occurring in re mercatoria, could be deemed a valid and binding agreement. The legal system adapts to modern business communication, allowing less formal digital communications to constitute contracts in commercial settings.

• Informal Purchase Order: A small manufacturing business sends a simple, unsigned purchase order via email to a supplier for raw materials. The purchase order lists the items, quantities, and agreed price, but lacks extensive legal clauses or formal signatures. Because this transaction takes place in re mercatoria, this relatively informal document could be legally recognized as a binding commitment to purchase the goods. The law prioritizes the practical needs of commerce, where such documents are routinely used to initiate and confirm orders without elaborate formalities.