COMMERCIAL LAW Uniformity- A commercial act or contract ought to be
Definition, Nature and Characteristic
A. A branch of private law
B. governing the rights, obligations and relations of
persons engage in commerce or trade
C. Includes the purchase, sale, exchange or distribution
of goods, commodities, productions, services or
property
Trade- business traffic within the limitations of a state
Commerce- covers the intercourse with foreign states
CHARACTERISTICS
UPE UC
1. Universal 2.Progressive 3. Equitable 4.Uniform
5. Customary
1. UNIVERSAL
-Because it exists in every civilized society
2. PROGRESSIVE
-Accumulates new ideas and keeps abreast with
contemporary developments
3 Salient developments that define commercial law
1st Passage of general enabling statutory
provisions- reference to commercial usage as a
means to settle disputes
2nd Specialized field of commercial endeavors
-To create and constitute an administrative
agency to handle each specialized field.
3rd Compel judges to delve into the commercial
and economic policies underlying commercial
transactions and delve into interdisciplinary
application of legal principles
Decisions of courts as source of law for commercial law
3. EQUITABLE AND UNIFORMITY
-Commercial transactions involve primarily the
exchange of values or consideration
-“Business-like” in nature and often do not involve
themselves with moral issues
-Rightfully emphasizes a system of contracts and
transactions and presents the structure by which they
could be efficiently pursued
governed by the same set of rules.
D. CUSTOMARY- Commercial laws embody rules that
are followed from time to time or are invoked in
everyday transactions.
FUNDAMENTAL POSTULATES IN COMMERCIAL LAW
1. “Habitualness” –mark of commerce
-Commercial transaction generally arise from the
element of repetition
Home insurance v. American Steamship- A bill of lading
stipulation that ship-owner would not be liable for the
negligent acts of the crew would be void when found in
commercial transactions—But if the vessel was
chartered. The contract of carriage was more of an
isolated transaction—the stipulation above is therefore
enforceable.
By which the customary and progressive characteristics
nature of commercial laws can properly evolve
2.”Time is of the essence “
-From the characteristic of equitableness
-Involve an exchange of values-- the expeditious
enforcement and consummation of which serves the
better interest if the multitude of parties similarly
situated
a. Perfection
Civil code v. Commercial law
Civil code- Theory of cognition- Acceptance made would
bind the offeror only from the time it came to his
knowledge
-The offeror must be given the decision on whether to
keep his offer afloat
Commerce- Theory of manifestation- Contracts shall be
perfected from the moment an answer is made after
accepting the offer
-the offeror stands out offering his products or services
to the public
-perfection is on the side of the transacting public
b. Designation of Period
Civil Code- If the obligation does not fix a period, but
from its nature and circumstances it would appear that
a period was intended, then an action would have to be
files for the fixing of the period
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Commerce- Art. 62- Obligations which give rise to
ordinary actions shall be demandable 10 days after
having been contracted if no period was previously
fixed by the parties.
-If the obligation requires its immediate execution the
same shall be demandable the next day
-Transaction are automatically given a period

c. Delay and Default Concepts

Concepts of delay
a. Mora-Failure to pay an obligation, with
liability- Default
b. Retraso- Failure to pay on time but with no
-liability-Delay
Civil Code- Demand is necessary except when time is of
the essence

Commerce- G.R. Time is of the essence; every debtor

would be in mora

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