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Also called Mercantile Law, Commercial Law is the law relating to commerce.
An expression substantially equivalent to the law-merchant or commercial law; It designates the system of rules, customs, and usages generally recognized and adopted by industry, traders, merchants and those dealing in commerce, and which, either in its simplicity or as modified by common law or statutes, constitutes the law for the regulation of their transactions and the solution of their controversies.
It is that part of law which regulates the transactions of the mercantile community.
The scope of commercial law is large. It includes the laws relating to contract, partnership, negotiable instruments, sale of goods, companies etc.
Sources of Commercial Law
- Statutes and Legislation
- English Mercantile Law
- Judicial Decision or Precedents
- Custom and Usage
Lex Mercatoria or Law Merchant
It is also one of the important sources of English mercantile law. A lex mercatoria or law merchant consists of legal principles based on customs and usage. They developed first as a separate system of law and subsequently became part of the common law.
Commercial Law in India
The term commercial law has no fixed meaning in India. As a rule, there is no distinction between commercial and non-commercial contracts, government or non-government contracts. The concerned enactments are generally uniform in their application to these contracts.1 There are no commercial courts in this country. Broadly speaking, a discussion on commercial law may include within its ambit the Indian Contract Act, 1872; the Negotiable Instruments Act, 1882; the Transfer of Property Act, 1882; the Presidency Towns Insolvency Act, 1909; the Provincial Insolvency Act, 1920; the Sale of Goods Act, 1930; the Indian Partnership Act, 1932; the Arbitration and Conciliation Act, 1996; the Companies Act, 1956 and the specific Relief Act, 1963.