Law Merchant Law and Legal Definition

Law merchant is a body of commercial law embracing the usages of merchants in different commercial countries. The law merchant system of law does not rest exclusively on the institutions and local customs of any particular country, but consists of certain principles of equity and usages of trade which general convenience and a common sense of justice have established to regulate the dealings of merchants and mariners in all the commercial countries of the civilized world. [Bank of Conway v. Stary, 51 N.D. 399 (N.D. 1924)].