Welcome to the Investors Trading Academy talking
glossary of financial terms and events. Our word of the day is “Common Law”
The law of the land which comes from neither the statute books nor the constitution but
from court law reports. Originally that body of law which was common to all parts of England
not customary or local law and developed over centuries from the English courts to be adopted
and further developed in countries using that system. As compared to democratically maintained
law, common law is judge maintained and modified law and is valid unless it conflicts with
statute law. Common law also known as case law or precedent
is law developed by judges, courts, and similar tribunals, stated in decisions that nominally
decide individual cases but that in addition have precedential effect on future cases.
The common-law system prevails in England, the United States, and other countries colonized
by England. It is distinct from the civil-law system, which predominates in Europe and in
areas colonized by France and Spain. The common-law system is used in all the states of the United
States except Louisiana, where French Civil Law combined with English Criminal Law to
form a hybrid system. The common-law system is also used in Canada, except in the Province
of Quebec, where the French civil-law system prevails.