Commercial Law – Introduction

Overview

  • Focus: rules governing commercial transactions (goods, services, facilities) between professionals rather than consumers
  • Rooted in Lex Mercatoria (law merchant) traditions
  • Centred on contract law principles and market usages

Key Statutes

  • Competition and Consumer Act 2010 (Cth)\text{Competition and Consumer Act 2010 (Cth)} (formerly Trade Practices Act 1974)
  • Corporations Act 2001 (Cth)\text{Corporations Act 2001 (Cth)}
  • Insurance Contracts Act 1984 (Cth)\text{Insurance Contracts Act 1984 (Cth)}

Essential Reading

  • Roy Goode, “The Codification of Commercial Law” (1988) 14 Monash U L Rev 135 (esp. p. 141-)
  • Lord Irvine of Lairg, “The Law: An Engine for Trade” (2001) 64 Mod L Rev 333-349

Definitions & Origins

  • Roy Goode: “body of law which governs commercial transactions… between professionals”
  • Transactions-based, not institution-based
  • Typical, repetitive dealings allow standardisation

Characteristics

  • Pragmatic, problem-solving
  • Responsive to commercial needs
  • Facilitates efficient operations
  • Centred on contract and market practice

Philosophy / Core Principles (Roy Goode)

  • Party autonomy
  • Predictability
  • Flexibility
  • Good faith
  • Encouragement of self-help
  • Facilitation of security interests
  • Protection of innocent third parties