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Mercantile Law

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Meaning and source of Mercantile law

Mercantile law is a part of civil law. It governs and regulates the trade and commerce in the country. Mercantile law deals with the needs of a business man. This include laws relating to insurance, partnerships, contracts, companies, negotiable instruments, arbitration, carriage of goods etc.

Mercantile laws in India is taken from the English law. So it follows the English laws to a considerable extent with some modifications and reservations to suite with the Indian conditions and practices. Following are the main source of the Indian mercantile laws:

1. English Mercantile Law: English laws which developed and come into existence through the customs and usage of traders and merchants in England is the main source of the Indian Mercantile laws. These customs and usages of controlled the merchants in their dealings with each other. It is also known as the Common Law. It is unwritten and are based on customs, precedents and usages. The law of contracts is a part of Common law in England. It is one of the most important part of Mercantile law.

2. Indian Statute Law: Another main source of Indian Mercantile law is the Acts passed by the Indian Legislature. Indian Contract Act 1872, The Sale of Goods Act 1930, The negotiable Instrument Act 1881, The companies Act 1953 are some of the Acts passed by the Indian Legislature.
3. Judicial Decisions: Another important source of mercantile laws are the Judicial decisions of the Courts. Disputes settled by the courts earlier have persuasive and guiding value. The judge has to decide the case, where there is the law is silent on a point, according to the principle of equity, justice and good conscience. For interpreting the Indian Statutes and deciding various cases, English court decisions are frequently referred as precedents.

4. Customs and Usages: Another important source

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