law merchant

The law merchant accords such protection to a holder of a bill of exchange taken in the course of business for value, and without notice. When the instrument is one which by law is not negotiable, or when the negotiability has been restricted by the parties, the rule of the law merchant has no application.

In England. The general body of commercial usages in matters relative to commerce. Blackstone calls it the "custom of merchants," and ranks it under the head of the particular customs of England, which go to make up the great body of the common law. 1 Bl. Comm. 75. Since, however, its propriety be considered as a "custom" in the technical sense. 1 Steph. Comm. 54. It is a system of law which does not rest exclusively on the positive institutions and local customs of any particular country, but consists of certain principles of equity and usages of trade which general convenience and a common sense of justice have established, to regulate the dealings of merchants and mariners in all the commercial countries of the civilized world. 3 Kent, Comm. 2. In the United States. The law merchant of England, consisting of the body of usages, the decisions of the English courts construing the same, and statutes confirming and modifying the same prior to the Declaration of Independence, are a part of the common law of the United States. 19 111. 598; 1 Morris (Iowa) 128.

The general body of commercial usages in matters relative to commerce. Blackstone calls It the custom of merchants, and ranks it under the head of the particular customs of England, which go to make up the great body of the common law. 1 Bla. Com. 75. Since, however, its character is not local, nor its obligation confined to a particular district, it cannot with propriety be considered as a custom in the technical sense; 1 Steph. Com. 54. It j is a system of law which does not rest ex- ! clusively on the positive institutions and local customs of any particular country, but I consists of certain principles of equity and j usages of trade which general convenience and a common sense of justice have estab- 6 lished, to regulate the dealings of merchants and mariners in all the commercial countries of the civilized world. 3 Kent 2. These usages, being general and extensive, partake of the character of rules and principles of law, not of matters of fact, as do usages which are local or special. They constitute a part of the general law of the land, and, being a part of that law, their existence cannot be proved by witnesses, but the judges are bound to take notice of them ex offi- (Ho; Winch. 24; and this application is not confined to merchants, but extends to all persons concerned in any mercantile transaction. In the Middle Ages “the custom of merchants” meant tbe actual usage of the European commercial world. When it came before the ordinary tribunals, it had to be proved; but in the 18th century the courts took judicial notice of it. The development of the law merchant as part of the common law has continued without ceasing. Evidence of living general usage is still admissible to add new incidents to its contents, provided they do not contradict any rule already received. Pollock, First Book Many of the rules of the law merchant have come into the EInglish law through the Courts of Chancery. Burdick, Law Merchant, in 3 Sel. Essays in Anglo-Amer. L. H. 60. See Beawes, Lex Mercatoria Rediviva; Caines, Lex Mercatoria Americana; Comyns. Dig. Merchant (D); Chitty, Com. law; Pardessus. Droit Commercial; Collection des Lois maritimes an Uricure au dix-huitidme Si^cle, par Dupin; Capmany, Costumhres Maritimas; II Consolato del Mare; Vs et Coutumes de la Mer; Piantandia, Della Oiurisprudenze Maritima Commerciale, Antica e Moderna; Valin, Commentaire sur VOrdonnance de la Marine, du mois d'Aodt, 1681; Boulay-Paty, Droit Comm.; Boucher, Institutions au Droit Maritime; Parsons, Marit. Law; Smith, Merc. Law; Law Merchant, by Mitchell; Pollock, Expr. of C. L. 117; Early History of Law Merchant in England, in 17

See Mercantile Law.

Defined under Law in Black's Law Dictionary.

is a system of customs acknowledged and taken notice of by all commercial nations; and those customs constitute a part of the general law of the land; and being a part of that law their existence cannot be proved by witnesses, but the judges are bound to take notice of them-ez officio. See Beawes Lex Mercatoria Rediviva; Caines’s Lex Mercatoria Aiericnni: Com. Dig. Merchant, D; Chit. Comm. Law; Pardess. Droit Commercial.