Question

Is common law system or a civil law system more conducive to commerce? Which is more business friendly and why?

Answer 1

Statistically, civil law systems are more prevalent than common law systems nevertheless, the largest number of citizens worldwide use common law. Historically, civil law systems originated from the Roman Empire, and extensive legal codes have been developed as a result of the adaptation of ancient Roman legal concepts by rulers and legislative bodies in continental Europe during the 18th century. At the other hand, after the Norman Conquest, common law evolved in England through the courts ruling at particular cases brought before them, relying on local customs, legal standards applied in various parts of the country, and the rule of the monarchs.

The explanation is that civil law is easier, more consistent and more hierarchical than common law. In order to be binding, the law must be written in the civil code. Precedents are not binding; they have just a reference value. The courts do not produce new justice and new laws, but instead interpret the current law.
In civil law, the chapters are short, there are no case laws and the statutes explain them. The task of the lawyer is to define the legal rules, the legal goods and the legal values outside written law: i.e. what the lawyer has in his mind when codifying his thoughts on the document.

As a result , the main difference between the traditions of civil and common law lies in the sources of law and the role of judges. In civil law systems, the emphasis is placed on legislation as the primary source of law, while in common law systems, judges play a more active role in establishing legal precedents.

Establishing or expanding your business abroad may seem to be a demanding exercise in the best of circumstances, but when faced with a fundamentally different legal reality, it may become even more challenging. That's why being mindful of the essential differences between the two systems will provide you with a valuable perspective before you make important business decisions.