Commercial Law or Mercantile law

Definition
The laws of country relate to many subjects, e.g.,
inheritance and transfer of property, relationship
between persons, crimes and their punishment, as well
as matters relating to industry, trade and commerce.
The term Commercial Law or Mercantile Law is used
to include only the last of the aforesaid subjects, viz.,
rules relating to industry, trade, and commerce.
Commercial Suit

A suit between merchants, bankers, and traders,

relating to mercantile transactions is a commercial
suit. It follows that all laws which must be referred to
in order to decide such suits come within the scope of
commercial law. Commercial law or mercantile law
may therefore be defined as that part of law which
regulates the transactions of the mercantile
community.
 Scope
The scope of commercial law is large. It includes the laws
relating to contract, partnership, negotiable instruments,
sale of goods, companies etc.
It must be noted that there is no fixed line of division
between commercial law and other branched of law, nor is
there any conflict or contradiction between them. The law of
contract, which is a very important part of commercial law, is
applicable not only to merchants and bankers but also to
other persons
 Scope
When a merchant files a suit in a court of law the procedure
is not materially different from that of other suits. When a
trader commits an offence he is punfishable under the
criminal law exactly in the same way as any other person. The
subjects studied under the heading of commercial law do not
form a comprehensive code dealing with all aspects of
mercantile activity. Commercial law deals with only those
parts of law which are of special importance to the
mercantile community. The same laws are applicable to other
citizens under appropriate circumanstance.
 Sources of Commercial Law
The commercial law of Bangladesh /India is based upon
statutes of the Bangladeshs/Indian legislature, English
mercantile law and Indian mercantile usages, modified and
adapted by judicial decisions.
We are stating below the sources from which the rules of
commercial law of Bangladesh/India have been derived.
Statutes of the Bangladeshi/Indian Legislatures
The legislature is the main source of law in modern times. In
Bangladesh/India, the Central and the State legislatures
possess law making powers and have exercised their powers
extensively. The greater part of Bangladesh/Indian
commercial law is statutory.
 Sources of Commercial
English mercantile Law
Law
Many rules of English Mercantile Law have been
incorporated into Indian Law through statutes and judicial
decisions. English Mercantile Law is a mixture of diverse
elements. It contains rules originating from the following
sources:
Maritime usages which developed during the 14th and the 15th
centuries among merchants trading in the European ports.
These usages are known as Lex Mercantoria.
Rules which developed by custom in England and which
constitute what is called the English Common Law.
Sources of Commercial Law
Rules of Roman law.

Rules of Equity, i.e., rules which were applied by

English Courts of Equity in cases where the common
law rules were considered harsh and oppressive.
Statutes of the British Parliament.
 Sources of Commercial Law
Judicial Decisions or Precedents
Judges interpret and explain statutes. Rules of equity and
good conscience are incorporated into law through judicial
decisions. Whenever the law is silent on a point, the judge
has to decide the case according to his idea of what is
equitable. Prior to 1947, the Judicial Committee of the privy
Council of Great Britain was the final court of appeal for
Indian cases and its decisions were binding on Bangladeshi &
Indian courts. After, independence, the Supreme Court of
Bangladesh/ India is the final court of appeal. But decisions
of the superior English courts like the Courts of Appeal, privy
Council and the House of Lords are frequently referred to as
precedents which might be followed in interpreting
Bangladeshi & Indian statutes and as rules of equity and
good conscience.
Sources of Commercial Law
Custom and Usage
A customary rule is binding where it is ancient,
reasonable, and not opposed to any statutory rule, a
custom becomes legally recognized when it is accepted
by a court and is incorporated in a judicial decision.