Common Law: Why It's The Better Choice

why choose common law over civil law

Common law and civil law are the two primary legal systems in the world, with about 150 nations following civil law systems and around 80 adhering to common law. Common law is a body of unwritten laws based on legal precedents established by the courts, whereas civil law is rooted in the Roman Empire and is characterised by its reliance on legal codes as the primary source of law. Common law is typically followed in former British colonies or protectorates, such as the United States, Canada, India, Australia, and England itself, while civil law is practiced in nations like France, Germany, Spain, and South America (excluding Guyana). This article will explore the advantages of choosing common law over civil law.

Characteristics Values
Number of legal systems 2
Number of countries that follow common law 80
Number of countries that follow civil law 150
Common law nations United States, England, India, Canada, Australia
Civil law nations South America (except Guyana), France, Spain, Germany, Japan, China, Netherlands, Eastern, Central and East Asian nations
Common law origins England
Civil law origins Roman Empire
Common law basis Precedent
Civil law basis Legal codes
Common law and judges Judges are usually appointed after successful legal careers
Civil law and judges Judges are usually appointed straight out of university
Common law and contracts Extensive freedom of contract; few provisions are implied into the contract by law
Civil law and contracts Contracts are enforced by administrative courts unless the contract specifies arbitration

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Common law is flexible and adapts to new situations

Common law is a body of unwritten laws based on legal precedents established by the courts. It is flexible and adaptable to new situations in several ways.

Firstly, common law is flexible because it can respond to changes in society. It is not restricted by a comprehensive code of statutes, as civil law is, and can therefore adapt to unforeseen situations that were not contemplated at the time by the legislature. This adaptability is particularly relevant when addressing contemporary problems, such as those involving fraud or conspiracy, which may not have been foreseen by lawmakers when creating statutes and rules.

Secondly, common law provides greater flexibility in granting different types of security over assets. For example, in the context of Public-Private Partnerships (PPPs), common law systems recognise the concept of trusts, which enables security interests to be held by a trustee for lenders in a syndicated loan without the need for formal transfer or re-registration of security interests in the names of new lenders. This flexibility can be advantageous in PPP arrangements involving commercial funding.

Thirdly, common law allows for the overruling of prior decisions as "bad law". Higher courts in common law systems can overrule previous decisions without waiting for lawmakers to pass changes in statutes, demonstrating the adaptability of common law to evolving circumstances and societal changes.

Lastly, common law provides flexibility in the interpretation of legal rules. While legal precedents guide court rulings, common law allows for some freedom of interpretation, enabling judges to consider the reasonableness of applying a particular rule in the specific circumstances of a case. This flexibility can lead to equitable outcomes, as seen in the Soma Oil and Gas Ltd case, where the judge's ability to consider economic consequences resulted in a judgment that balanced legal principle with pragmatism.

In summary, the flexibility and adaptability of common law enable it to address unforeseen situations, respond to societal changes, grant diverse security interests, evolve through the overruling of previous decisions, and interpret legal rules with discretion. These characteristics distinguish common law from civil law systems, which are more reliant on codes and statutes.

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Civil law is based on Roman law and is more rigid

Civil law, practised in much of Europe and elsewhere in the world, is based on Roman law. The legal system of ancient Rome has influenced the development of law in most of Western civilisation, as well as in parts of the East. It forms the basis for the law codes of most countries in continental Europe and derivative systems elsewhere.

Roman law was originally divided into jus scriptum (written law) and jus non scriptum (unwritten law). The former included laws derived from legislation and other written sources, while the latter referred to custom. Over time, Roman law evolved and was adapted to changing conditions, with additions from non-Roman sources.

Civil law, influenced by Roman law, tends to be more rigid than common law. Common law, rooted in England and practised in the United States, is a body of unwritten laws based on legal precedents established by the courts. It allows for some freedom of interpretation, enabling the law to adapt to situations not previously contemplated by the legislature. In contrast, civil law systems tend to appoint judges straight out of university, while common law systems favour judges with successful legal careers, which can result in differing worldviews.

However, it is important to note that both legal systems have influenced each other over time. While civil law is based on Roman law, common law has also drawn from European influence, and European courts have adopted aspects of English common law, such as legal terminology and the wearing of wigs.

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Common law is a body of unwritten laws based on legal precedents established by the courts. It is a system that gives great weight to precedent while allowing some freedom for interpretation. This means that the law can be adapted to situations that were not contemplated at the time by the legislature. Common law draws from institutionalized opinions and interpretations from judicial authorities and public juries. It is a system that promotes stability and consistency in the legal justice system.

Civil law, on the other hand, is a comprehensive, codified set of legal statutes created by legislators. It is based on legal codes and tends to give less weight to judicial precedent. In civil law jurisdictions, the judiciary may not have the authority to invalidate legislative provisions. Civil law is regularly updated, and the goal of standardized codes is to create order and reduce bias in the system.

The primary contrast between the two systems is the role of written decisions and precedent as a source of law. Common law systems trace their history to English common law, while civil law systems originate from the Napoleonic Code and the Corpus Juris Civilis of Roman law. Countries that follow a common law system are typically former British colonies or protectorates, such as the United States.

One example of the difference between the two systems is in the recognition of common-law marriage. Common law marriage, also known as a non-ceremonial marriage, is a legal framework that allows couples to be considered married without a formally registered union. While it is not common in the US, several states have statutes that allow for common-law marriage if certain requirements are met.

Another difference is in the area of contracts. Civil law codes may contain mandatory notice periods before termination for breach of contract, which cannot be avoided or overridden. In contrast, common law systems have greater flexibility in granting different types of security over assets, and they also recognize the concept of trusts, which is not present in civil law.

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Common law countries have greater freedom of contract

Common law is a body of unwritten laws based on legal precedents established by the courts. Common law is derived from its original appearance in medieval England, and today, countries that were former British colonies or protectorates, such as the United States, have adopted this system.

Civil law systems, on the other hand, imply many provisions into contracts by law, and parties cannot contract out of certain provisions. For example, civil law codes may contain mandatory notice periods before termination for breach of contract that cannot be avoided. Additionally, in civil law jurisdictions, unless the contract specifies that the parties have agreed to arbitration, the contract will be enforced by the administrative courts.

The greater freedom of contract in common law systems provides flexibility in granting different types of security over assets. For example, common law systems have the concept of trusts, which enable security interests to be held by a trustee for lenders in a syndicated loan without the need for formal transfer or re-registering of security interests in the names of new lenders. This flexibility is particularly important for PPP arrangements involving commercial funding.

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Common law countries have more flexibility in granting security over assets

Common law is a body of unwritten laws based on legal precedents established by the courts. Common law systems have greater flexibility in granting different types of security over assets. This is an important feature of PPP arrangements involving commercial funding such as BOTs.

Common law countries have the concept of trusts, which enable security interests to be held by a trustee for lenders in a syndicated loan situation. This can be executed without the need for formal transfer or re-registering of security interests in the names of new lenders. In contrast, civil law does not have such a concept, and security interests generally need to be re-registered in the name of the new lender, involving additional registration costs and notarial fees.

The flexibility of common law in granting security over assets is particularly advantageous in commercial funding situations. For example, in a syndicated loan arrangement, multiple lenders contribute funds to a borrower, and the presence of a trustee can facilitate the management of security interests. The trustee holds the security interests on behalf of the lenders, eliminating the need for individual registration for each lender. This simplifies the process and reduces the associated costs.

Additionally, the flexibility of common law allows for the adaptation of the law to situations that were not contemplated at the time of its creation. This adaptability ensures that the law can keep pace with evolving circumstances and address novel issues that may arise. It empowers the legal system to interpret and apply laws to situations that were not originally foreseen, promoting practicality and responsiveness to change.

In summary, common law countries offer more flexibility in granting security over assets due to the presence of trusts and the ability to adapt the law to new situations. This flexibility can enhance the efficiency of commercial transactions and ensure that the law remains relevant and responsive to societal developments.

Frequently asked questions

Common law is a body of unwritten laws based on legal precedents established by the courts. It is a major source of law in common law nations.

Civil law is a legal system rooted in the Roman Empire and is the most common legal system, practiced in about 150 countries. It is characterised by its reliance on legal codes that function as the primary source of law.

Common law systems place great weight on precedent, whereas civil law judges tend to give less weight to judicial precedent. Common law systems also have greater flexibility in granting different types of security over assets. Additionally, the appointment of judges differs between the two systems, with common law judges usually being appointed after successful legal careers, while civil law jurisdictions tend to appoint graduates straight out of university.

Common law is practiced in countries that were former British colonies or protectorates, including the United States, England, India, Canada, and Australia.

Common law provides greater flexibility in granting security over assets, which is important for certain financial arrangements. It also allows for the adaptation of the law to situations that were not contemplated at the time by the legislature. Additionally, common law systems are generally less prescriptive than civil law systems, providing more freedom of contract.

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