Investors Trading Academy - Common Law Glossary

Definition of Common Law

• Origin: Derives from court law reports, not from statute books or constitutions.
• Historical Context: Originally common to all parts of England, differing from customary or local law.
• Development: Developed over centuries from English courts and adopted in countries using the common law system.

Characteristics of Common Law

• Judge-Made Law: Maintained and modified by judges rather than by democratic processes.
• Validity: Remains in force unless it conflicts with statutory law.
• Alternative Names: Also known as case law or precedent.

Function of Common Law

• Precedential Effect: Decisions have influence on future cases, establishing precedents.
• Individual Cases: Nominally decides individual cases but affects wider legal principles.

Common Law vs. Civil Law

• Prevalence:
  • Common Law System: Used in England, the United States (except Louisiana), and other countries colonized by England.
  • Civil Law System: Dominates in Europe and areas colonized by France and Spain.

Usage in the United States and Canada

• United States: All states use common law except Louisiana, which uses a hybrid of French civil law and English criminal law.
• Canada: Common law is used throughout except in Quebec, where the French civil law system is predominant.