LEX 31 ERCATOR1A, or LAW.MERCHANT, in a general sense, denotes that hody of the usages and customs of merchants which has been adopted into the laws of most countries, and particularly of mari time states, for the protection and encouragement of trade. In this view it has been often termed a branch of the Law of Nations. In this general sense the law-merchant is at the present day extremely uncertain and indefinite, as different countries have adopted different portions of it, and the mercantile usages and customs common to all are few in number. Some 'centuries ago, however, when the trans actions of commerce were less complicated, and the rules by which they were governed were consequently simple, the provisions of the Lex Mercatoria appear to have been better understood and ascertained. Thus we find the law-merchant frequently referred to in general terms by our earlier English statutes and charters as a well-known system, and distinguished from the ordinary law ; as, for instance, in the stat. 27 Edw. 1353, it is declared "that all merchants coming to the Staple shall be ordered according to the law-merchant, and not accord ing to the common law of the land ' • " and the Charta Mercatoria, 31 Edw. I., 1303, directs the king's bailiffs, ministers, &c., " to do speedy justice to merchants secundum legem Alereatoriam." Lord Coke mentions the law-merchant as one of the great divisions of which the law of England is composed (` Co. Litt.' 11, b.), and the custom of merchants is said to be part of the law of England of which the courts are to take judicial notice. (Vanheath r. Turner, Winch's
p. 24.) This, however, must be understood to apply only to general customs, as the rule does not comprehend particular or local usages which do not form part of any general system. The generality of the expression has caused much misunderstanding, and merchants in this country have been often led to conceive from it, that when practices or rules of trade have become established amongst them so as to amount to " customs " in the common meaning of the term, they form part of the law of the land. This misconception has frequently led to improper verdicts of juries in mercantile trials. It is quite clear, however, that the Lex Mercatoria, when used with reference to English law, like the Lex et Consuetude Parliamenti, merely describes a general head or division of the system. What customs or rules are compre hended under that division must always be matter of law for the consideration of the judges ; and it is said by Chief Justice Hobart (in Vanheath v. Turner), that if they doubt about it, they may " serid for the merchants to know their custom, as they may send for the civilians to know their law." In modern times the courts would inform them selves by directing an issue ; and indeed it is chiefly in trying disputed questions before a jury that evidence of mercantile customs is given. As to what is understood by the Taw-merchant in England, and whence it is derived, see the Introduction to Smith's ` Mercantile Lana.'