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LSDefine
Simple English definitions for legal terms
law merchant
Read a random definition: ultra vires compromissi
A quick definition of law merchant:
Law Merchant: A set of rules that were created during the Middle Ages in Europe to regulate the business dealings of merchants and sailors. These rules were used all over the world until the 17th century. Some of these rules were later included in the common law, which is the basis for the Uniform Commercial Code. Another name for the law merchant is commercial law or lex mercatoria.
A more thorough explanation:
Definition: Law merchant is a system of customary law that was developed in Europe during the Middle Ages. It regulated the dealings of mariners and merchants in all the commercial countries of the world until the 17th century. Many of the law merchant's principles came to be incorporated into the common law, which in turn formed the basis of the Uniform Commercial Code. It is also known as commercial law or lex mercatoria.
Example: One example of law merchant is the principle of good faith and fair dealing. This principle requires that parties to a contract act honestly and fairly towards each other. For example, if a merchant sells goods to another merchant, they must provide accurate information about the goods and not misrepresent them in any way.
Explanation: The example illustrates how the principle of good faith and fair dealing is an important part of law merchant. It ensures that merchants act honestly and fairly towards each other in their business dealings. This helps to build trust and confidence in the marketplace, which is essential for the smooth functioning of commerce.