What is Common Law?

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Welcome to the Investors Trading Academy talking glossary of financial terms and events.
Our word of the day is “Common Law”
The law of the land which comes from neither the statute books nor the constitution but from court law reports. Originally that body of law which was common to all parts of England not customary or local law and developed over centuries from the English courts to be adopted and further developed in countries using that system. As compared to democratically maintained law, common law is judge maintained and modified law and is valid unless it conflicts with statute law.
Common law also known as case law or precedent is law developed by judges, courts, and similar tribunals, stated in decisions that nominally decide individual cases but that in addition have precedential effect on future cases.
The common-law system prevails in England, the United States, and other countries colonized by England. It is distinct from the civil-law system, which predominates in Europe and in areas colonized by France and Spain. The common-law system is used in all the states of the United States except Louisiana, where French Civil Law combined with English Criminal Law to form a hybrid system. The common-law system is also used in Canada, except in the Province of Quebec, where the French civil-law system prevails.

By Barry Norman, Investors Trading Academy – ITA

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