Legal Definitions - consuetudo mercatorum

Definition: Consuetudo mercatorum is a Latin term that means "the custom of merchants." It refers to the practices and customs that have developed over time within the merchant community. This term is often used interchangeably with the term "law merchant."

Examples: One example of consuetudo mercatorum is the practice of using bills of exchange to facilitate international trade. Another example is the use of trade terms such as FOB (free on board) and CIF (cost, insurance, and freight) to specify the responsibilities of buyers and sellers in a transaction.

Explanation: These examples illustrate how consuetudo mercatorum refers to the customs and practices that have developed within the merchant community. The use of bills of exchange and trade terms are not necessarily required by law, but they have become widely accepted as standard practices within the industry. These customs help to facilitate trade and ensure that transactions are conducted smoothly and efficiently.