10 Interesting Facts On Mercantile Law
Mercantile Law is an important part of CPT examination. It might appear a bit difficult for you at first, but this is where you can score the most. So, conceptual clarity is a must.
Here we have given a low-down on a couple of facts regarding Mercantile Laws:
- The Indian Contract Law is widely known as Mercantile Law of India. The main Contract Law is compiled in the Indian Contract Act. This is the most widely used and practiced form of legal agreements in India.
- Contracts are used during any commercial transaction in India and the entire world.
- The Indian Contract Act defines and determines the circumstances under which any party makes certain promises to a contract which acts as a legal binding on them.
- Originally, the Sales of Goods Act and the Partnership Act were a part of the Indian Contract Act. After amendment of the Contract Act, these two parts were separated from it.
- Originally, this Mercantile Law was a compilation of rules and regulations that were laid down by the merchants for regulating their business.
- These laws are enforced through the local courts; however the merchants required to deal with the issue quickly. Going to court meant a waste of time. Mercantile law provided quick solution due to its informal and liberal processes.
- Mercantile Law is also a way for the local communities to safeguard their own markets.
- Any breach of contract is tried under Mercantile law and can result in compensatory damages if the breach causes any foreseeable loss.
- In case of any breach, the party that is innocent, has to take reasonable steps for reducing the loss.
- Civil law was not enough to respond effectively to the merchant’s needs and that is why Merchantile Law came into being.