Handbook

Commercial Law is an elective which introduces students to the general principles of commercial law, and builds on their foundation courses in Contracts, Business Associations and Equity & Trusts. It does not substantially overlap with specialised commercial options such as Law of Banking, Commercial Finance, Consumer Protection Law, Economic Analysis of Law, Insurance Law, Insolvency Law, International Trade Law, Interests in Securities, Regulation of Economic Activity, and Securities and Financial Services Regulation.

Commercial Law introduces students to the way in which general principles of common law, equity and statute law have developed to deal with the needs of commercial markets by focussing on:

• The law applicable to commercial sales of goods; and
• Agency law

The course, like the players in commercial markets, takes a problem-solving approach to subject matter, but also considers the broader policy dimensions of commercial law doctrines and practices. The problem-solving approach investigates the way traders structure transactions to take best advantage of the protection offered by existing legal doctrines, and so illuminates the creative ways in which legal models or concepts are adapted to achieve pragmatic goals.  

Main Topics

• Understanding the contract of sale and the multiple legal concepts of goods
• Contractual and statutory terms of contracts of sale
• The importance of accurate and precise description of the goods; correspondence with sample
• Fitness for purpose
• Merchantability
• Concepts of ownership: property, possession and transfer of risk
• When is possession legally recognised?
• Bailment of goods
• Challenges to ownership: nemo dat quod non habet and its exceptions
• Performance and breach in the sale of goods
• Contractual bases of agency law
• Ratification of agency; rights and obligations arising from conduct after formation of the contract of agency
• Agents and third parties; the doctrine of the undisclosed principal
• Mercantile Agents and problems of apparent authority