1 - Commercial and Legal Contexts

Summary

The chapter outlines and commercial and legal context for the subject matter of the book. Pivotal to the context of commercial law during the period to book covers was Britain’s dominant role in international trade and finance for a significant part of it. Commodities traded in the organised markets in London and Liverpool often set world prices. International trade was financed through London-based banks. Trading firms in Britain or with links to it imported raw materials to Europe and distributed exports. The law furnished a broad framework within which this commercial and financial activity took place. During the period state regulatory law was at a minimum and parties and markets were free to engage in private law-making. Lawyers and the courts were kept at bay, with the bulk of disputes being dealt with through private dispute settlement in the form of arbitration. When courts were involved, n the main they lent support with principles of party autonomy, a clear preference for certain and predictable rules and a supportive disposition. When legal difficulties were encountered, these were fairly readily surmounted by contractual or private arrangements. Overall, the law cast few shadows over profit making.