Legal Definitions - mercative

In Scots law, "mercative" is an adjective used to describe something that pertains to or is characteristic of trade. It refers to matters belonging to the realm of commerce and business transactions.

Mercative

In Scots law, the term mercative is an adjective used to describe something that pertains to, is characteristic of, or is directly involved with trade, commerce, or the marketplace.

Here are some examples illustrating the application of this term:

• A commercial lease agreement: Imagine a contract where a company leases a retail unit in a shopping centre to sell clothing. This lease agreement would be considered mercative because its entire purpose is to facilitate a commercial trading activity – the sale of goods to customers.

• Inventory held by a wholesaler: A large stock of electronics held by a distributor, intended solely for resale to retailers, would be described as mercativeproperty. Its nature and purpose are intrinsically linked to the process of trade and commerce, as it is acquired and held specifically for market exchange.

• Negotiations for a supply chain contract: When two businesses are discussing the terms for a long-term agreement to supply raw materials for manufacturing, these discussions and the resulting contract are mercative in nature. They are fundamental to the trading operations of both companies, establishing the framework for commercial transactions.