Principles and Sources of Commercial
Law
Sir Roy Goode - correct answer-'that branch of law which is concerned with rights and duties
arising from the supply of goods and services in the way of trade'
Unifying principles of commercial law - correct answer-Predictability
Flexibility
Party autonomy
Efficient dispute resolution
Predictability - correct answer-In order for trade to function, there has to be a clear set of
rules to provide certainty - we need certainty for trust and assurance that business will go
ahead, and therefore invest money into it.
Not only this but businesses need certainty in remedial options, should anything go wrong
for them, just as much as certainty in business with another
Certainty v Fairness - correct answer-they should be certain and adaptable, but should also
be fair - favours certainty - note: this usually happens with business contracts but not the
case with consumer contracts - The courts are likely to favour certainty over fairness with
business contracts, but fairness with consumer contracts
Effect of C v F on SME's - correct answer-not necessarily fair as although the SME might be
a business, therefore would be involved in a business contract, they might not have the
same bargaining power as a larger company so in some cases it wouldn't be fair
Flexibility - correct answer-If laws are too predictable then they will not be sufficiently flexible
to accommodate recent changes, but if they are too flexible to accommodate recent changes
then they will not be sufficiently predictable to provide certainty.
2 ways of providing flexibility - correct answer-o provide party autonomy
o give effect to customs, practices and trade usage
Party Autonomy - correct answer-freedom of contract and sanctity of contract - mainly
applied to consumer contracts
freedom of contract - correct answer-whatever terms they wish to agree upon
sanctity of contracts - correct answer-the courts have a duty to uphold the agreed open
terms, so long as they aren't unlawful
Law
Sir Roy Goode - correct answer-'that branch of law which is concerned with rights and duties
arising from the supply of goods and services in the way of trade'
Unifying principles of commercial law - correct answer-Predictability
Flexibility
Party autonomy
Efficient dispute resolution
Predictability - correct answer-In order for trade to function, there has to be a clear set of
rules to provide certainty - we need certainty for trust and assurance that business will go
ahead, and therefore invest money into it.
Not only this but businesses need certainty in remedial options, should anything go wrong
for them, just as much as certainty in business with another
Certainty v Fairness - correct answer-they should be certain and adaptable, but should also
be fair - favours certainty - note: this usually happens with business contracts but not the
case with consumer contracts - The courts are likely to favour certainty over fairness with
business contracts, but fairness with consumer contracts
Effect of C v F on SME's - correct answer-not necessarily fair as although the SME might be
a business, therefore would be involved in a business contract, they might not have the
same bargaining power as a larger company so in some cases it wouldn't be fair
Flexibility - correct answer-If laws are too predictable then they will not be sufficiently flexible
to accommodate recent changes, but if they are too flexible to accommodate recent changes
then they will not be sufficiently predictable to provide certainty.
2 ways of providing flexibility - correct answer-o provide party autonomy
o give effect to customs, practices and trade usage
Party Autonomy - correct answer-freedom of contract and sanctity of contract - mainly
applied to consumer contracts
freedom of contract - correct answer-whatever terms they wish to agree upon
sanctity of contracts - correct answer-the courts have a duty to uphold the agreed open
terms, so long as they aren't unlawful
