Principles of commercial law
Sanctity of contract
- Parties should be entitled to have the benefits and
obligations arising from the contract
- Watford – terms unlikely to be struck down if made
by commercial parties of equal bargaining power.
Certainty
- The Laconia, Lord Salmon, ‘certainty is of
primary importance in all commercial
transactions’
Commercial freedom/ flexibility
- Lord Devlin in Kum - Purpose of commercial law is to allow people
to do business the way they want to
The negotiability principle
- Allowing things to be marketable so they can be assigned, transferred, saleable.
Brougham – commercial law is ‘far purer and free from defects than any other part of
the system’.
Goode – advocates codification of all commercial law.
Sanctity of contract
- Parties should be entitled to have the benefits and
obligations arising from the contract
- Watford – terms unlikely to be struck down if made
by commercial parties of equal bargaining power.
Certainty
- The Laconia, Lord Salmon, ‘certainty is of
primary importance in all commercial
transactions’
Commercial freedom/ flexibility
- Lord Devlin in Kum - Purpose of commercial law is to allow people
to do business the way they want to
The negotiability principle
- Allowing things to be marketable so they can be assigned, transferred, saleable.
Brougham – commercial law is ‘far purer and free from defects than any other part of
the system’.
Goode – advocates codification of all commercial law.
