In: Economics
There are two main types of legal system in the world,with most countries adopting features from one or other into their own legal system- commom law and civil law. Common law which is also known as case law is based on legal precedents established by the court.It influences in the decision making process of the unusual cases where the outcome cannot be determined based on existing statues or written rules of law.It draws from institutionalized opinions and interpretations from judicial authorities and public juries.From time to time, common law has furnished the basis for new legislation to be written.countires following a common law system are typically those that were former British colonies or protectorates, including the United States.
Nature of commom law
-it is part of the law that is established by the courts and not by the constitution.
-common law is important in the areas of torts and contracts and corporations.
-it can properly employ only those that have a requisite degree of social support.
-it act as a foundation for commercial economies
-extensive freedom of contract-few provisions are implied into the contract by law(although provisions seeking to protect private consumers may be implied)
-generally everything is permitted that is not expressly prohibited by law.
Common law is less prescriptive than a civil law system.so a government may wish to enshrine protections of its citizens in a specific legislation related to the infrastructure program being contemplated.There are a few provisions implied into contract under the common law system , therefore, it is important to set out all the terms governing the relationship between the parties to a contract in the contract itself.this will often result in a contract being longer than one in a civil law country.The judicial decisions are not binding on third parties; however administrative and constitutional court decisions on laws and regulations binding on all.
Advantages of common law
-Equity is to correct common law defects and mitigate its harshness.It fills the gaps of common law and soften the strict rules of common law.
-Decision under common law is based on previous judgements. people know what to expect, there is an element of predictability.
-there is a certain efficiency in the process of systems which following common law compared to the system that did not follow the precedent based system.
-it is practical in nature.the rules laid down are the product, not of academic speculation but of difficulties that have actually risen. thus, it is touch with everyday life.
Disadvantages of common law
-the downside of a judgement that has been made, its that will be superseded again by other judges even if the decision is deffective.
-when there is no precedents then the judges make decisions on the evidence given and as far as possible come to a fair judgement, sometime a view of the evidence by the judge may bring about a wrong judgement.
- because of the importance of precedents in common law system, the authorities need to maintain long, detailed records for reference which is expensive and time consuming.
-it is rigid once rule is established.this cause inflexibility, which can be a problem especially when the decision is outdated.