Maxims of commercial law — Latin, English, and the cases that test them.
Twenty-five legal maxims that recur in Indian commercial practice. Each card carries the Latin form, the English meaning, the doctrinal origin, the area of application, and a source. Sources are confined to Black’s Law Dictionary, Earl Jowitt’s Dictionary of English Law, Wharton’s Law Lexicon, and Broom’s Legal Maxims. Where a specific Indian Supreme Court application is cited, the citation has been verified at the time of writing. Where a citation could not be independently verified, the card is flagged.
Pacta sunt servanda
Origin
Roman law principle, codified in the Justinian Digest. Foundational to all systems of contract law in the common-law and civil-law traditions.
Application
The presumption of binding force in commercial contracts; the obligation that arises from a freely-given promise. Underlies sections 10, 23, and 37 of the Indian Contract Act 1872.
Verified source
Source: Black’s Law Dictionary (10th edn, Thomson West 2014). Origin traceable to Justinian, Digest, 2.14.7.7.
Caveat emptor
Origin
Common-law doctrine; classically attributed to Lord Mansfield in eighteenth-century English law.
Application
The default rule that a buyer takes the goods or property as found, subject to express warranties. Materially modified by the Sale of Goods Act 1930, ss 14–16 (implied conditions and warranties), the Consumer Protection Act 2019, RERA 2016 (in respect of real estate), and securities-law disclosure regimes.
Verified source
Source: Black’s Law Dictionary (10th edn, Thomson West 2014); Earl Jowitt’s Dictionary of English Law (3rd edn, Sweet & Maxwell 2010).
Quid pro quo
Origin
Common-law expression of the doctrine of consideration in contract.
Application
The requirement of consideration under the Indian Contract Act 1872, s 25, save for the statutory exceptions specified there. A promise without consideration is, in general, not enforceable as a contract.
Verified source
Source: Black’s Law Dictionary (10th edn, Thomson West 2014).
Lex non cogit ad impossibilia
Origin
Common-law maxim of long standing; recorded in Coke and Broom.
Application
The doctrinal foundation for the law of frustration of contract under the Indian Contract Act 1872, s 56, and the contractual remedy of force majeure. Where performance has become impossible by an event outside the parties’ control, the obligation is discharged.
Verified source
Source: Broom, Legal Maxims (10th edn, Sweet & Maxwell 1939) ch 1.
Falsa demonstratio non nocet
Origin
Roman-law maxim of contract interpretation; carried into English law through equity and the common law.
Application
Where the parties’ identification of a subject matter is mistaken or imprecise but the underlying intention is clear, the contract is not invalidated. Used by Indian courts in interpreting deeds, wills, and commercial contracts.
Verified source
Source: Earl Jowitt’s Dictionary of English Law (3rd edn, Sweet & Maxwell 2010); Broom, Legal Maxims (10th edn).
Generalia specialibus non derogant
Origin
Civil-law maxim adopted into English statutory interpretation; long-standing rule of construction.
Application
Where a general statute and a special statute address the same subject matter, the special statute governs the matters specifically dealt with by it. Applied by Indian courts in the construction of overlapping statutes (for example, the IBC and prior insolvency provisions).
Verified source
Source: Earl Jowitt’s Dictionary of English Law (3rd edn); Black’s Law Dictionary (10th edn).
Expressio unius est exclusio alterius
Origin
Common-law canon of construction; recorded in Coke and applied throughout English statutory interpretation.
Application
Where a statute specifies certain categories or instances, items not so specified are presumed to be excluded. A canonical tool of statutory construction in Indian courts; to be applied with caution where context suggests inclusiveness was intended.
Verified source
Source: Black’s Law Dictionary (10th edn).
Noscitur a sociis
Origin
English canon of construction; ancient common-law origin.
Application
The meaning of an ambiguous word is to be ascertained by reference to the words associated with it in the statute. Frequently invoked by the Indian Supreme Court in statutory construction.
Verified source
Source: Black’s Law Dictionary (10th edn); Earl Jowitt’s Dictionary of English Law (3rd edn).
Ejusdem generis
Origin
Common-law canon of construction; well-established in English statutory interpretation since the seventeenth century.
Application
Where general words follow specific words in a statute, the general words are restricted to things of the same class as the specific words. A core tool in the construction of enumerative provisions in Indian statutes.
Verified source
Source: Black’s Law Dictionary (10th edn); Wharton’s Law Lexicon (15th edn, Sweet & Maxwell 2009).
Ut res magis valeat quam pereat
Origin
Civil-law-derived canon of construction adopted in English statutory interpretation.
Application
A statute should be construed, where reasonable, in a manner that gives it effect rather than rendering it inoperative. Frequently relied upon by Indian courts to give purposive effect to legislation.
Verified source
Source: Black’s Law Dictionary (10th edn); Broom, Legal Maxims (10th edn).
Audi alteram partem
Origin
Latin formulation of an ancient principle; recognised in Roman, canon, and English common law as a fundamental rule of natural justice.
Application
The right to be heard before an adverse decision is taken; constitutionally embedded in Indian administrative and quasi-judicial proceedings under Article 14 of the Constitution. The principle is invoked across regulatory, tribunal, and disciplinary contexts.
Verified source
Source: Black’s Law Dictionary (10th edn); Earl Jowitt’s Dictionary of English Law (3rd edn). Indian application: foundational principle articulated in Maneka Gandhi v Union of India (1978) 1 SCC 248 (SC) [verification recommended against the official reporter before reliance].
Nemo judex in causa sua
Origin
Common-law and civil-law principle of long standing; recorded in Coke’s Institutes.
Application
The rule against bias in adjudication; the second limb of natural justice. Applied by Indian courts in administrative law, statutory tribunals, and disciplinary proceedings; underlies the requirement of an independent and impartial decision-maker.
Verified source
Source: Black’s Law Dictionary (10th edn). Indian application widely recognised; specific case citation depends on context.
Ubi jus ibi remedium
Origin
Foundational maxim of English equity and common law; classically articulated in Ashby v White (1703) 92 ER 126 (KB) per Holt CJ.
Application
The principle that legal rights presuppose enforceable remedies. Underlies the writ jurisdiction of the High Courts under Article 226 and the Supreme Court under Article 32 of the Indian Constitution.
Verified source
Source: Black’s Law Dictionary (10th edn); Broom, Legal Maxims (10th edn). The case Ashby v White is the locus classicus.
Ex turpi causa non oritur actio
Origin
Common-law maxim articulated by Lord Mansfield in Holman v Johnson (1775) 1 Cowp 341, 343 (KB).
Application
A claim founded on the claimant’s own illegal or immoral act is not actionable. Used in Indian commercial litigation as a defence to claims based on contracts contrary to public policy under Indian Contract Act 1872, s 23. The doctrine is closely related to in pari delicto potior est conditio defendentis.
Verified source
Source: Black’s Law Dictionary (10th edn); Earl Jowitt’s Dictionary of English Law (3rd edn). Locus classicus: Holman v Johnson (1775) 1 Cowp 341 (KB).
In pari delicto potior est conditio defendentis
Origin
Roman-law principle adopted into English equity. Companion to ex turpi causa.
Application
Where both parties to an illegal transaction are equally culpable, the law leaves them as it finds them. Indian courts apply the maxim in commercial contexts where the underlying transaction is voidable for illegality, recognising the carve-outs for parties not in pari delicto.
Verified source
Source: Black’s Law Dictionary (10th edn).
Nemo dat quod non habet
Origin
Roman-law principle carried into the English common law of property and sale.
Application
A transferor cannot transfer a better title than they themselves hold. Codified in the Sale of Goods Act 1930, s 27, with statutory exceptions in ss 27–30. Underlies the entire framework of title due diligence in Indian real estate and commercial transactions.
Verified source
Source: Black’s Law Dictionary (10th edn); Earl Jowitt’s Dictionary of English Law (3rd edn).
Volenti non fit injuria
Origin
Roman-law maxim recorded in the Justinian Digest, 47.10.1.5; adopted into the English law of torts as a defence based on consent.
Application
Where a person freely and knowingly consents to the risk of harm, they cannot subsequently complain of the harm as a legal injury. Underlies the enforceability of indemnity caps, limitation-of-liability clauses, and waivers in Indian commercial contracts; subject to public-policy limits under Indian Contract Act 1872, s 23.
Verified source
Source: Black’s Law Dictionary (10th edn). Origin: Justinian, Digest 47.10.1.5.
Damnum sine injuria
Origin
Roman-law principle of tort; companion to injuria sine damno.
Application
Loss suffered without infringement of a legal right is not actionable. Distinguishes business losses caused by lawful competition from losses caused by tortious or contractual wrongs. Frequently invoked in Indian commercial-tort cases.
Verified source
Source: Black’s Law Dictionary (10th edn); Wharton’s Law Lexicon (15th edn).
Injuria sine damno
Origin
Companion principle to damnum sine injuria; classically illustrated in Ashby v White (1703) 92 ER 126 (KB).
Application
Infringement of a legal right is actionable even without proof of pecuniary loss; nominal damages may be awarded. Applied in Indian tort and constitutional jurisprudence, particularly where rights of personal liberty or due process are engaged.
Verified source
Source: Black’s Law Dictionary (10th edn); Earl Jowitt’s Dictionary of English Law (3rd edn). Locus classicus: Ashby v White (1703) 92 ER 126 (KB).
Res ipsa loquitur
Origin
Common-law evidentiary doctrine articulated in Byrne v Boadle (1863) 2 H & C 722 (Ex).
Application
Where the accident is of a kind that ordinarily does not occur without negligence, and the instrumentality was under the defendant’s exclusive control, an inference of negligence may arise. Applied by Indian courts in negligence and product-liability cases.
Verified source
Source: Black’s Law Dictionary (10th edn). Locus classicus: Byrne v Boadle (1863) 2 H & C 722 (Ex).
Stare decisis et non quieta movere
Origin
Common-law doctrine of precedent. The full Latin form is given in Coke; the abbreviated stare decisis is the form most commonly used.
Application
The doctrine that judicial decisions of higher courts bind lower courts. In India, the law declared by the Supreme Court is binding on all courts under Article 141 of the Constitution. The doctrine is qualified in respect of decisions per incuriam and decisions of Coordinate Benches.
Verified source
Source: Black’s Law Dictionary (10th edn). Indian constitutional foundation: Constitution of India, art 141.
Ratio decidendi
Origin
Common-law doctrine of binding precedent.
Application
The principle of law on which the decision rests; the binding part of a judgment. Distinguished from obiter dicta, which are non-binding observations. Indian courts identify the ratio by reference to the reasoning that was necessary to the decision.
Verified source
Source: Black’s Law Dictionary (10th edn).
Obiter dictum
Origin
Common-law doctrine companion to ratio decidendi.
Application
An observation made by a judge that is not necessary to the decision. Obiter is not binding but may be persuasive, particularly when delivered by a court of high authority.
Verified source
Source: Black’s Law Dictionary (10th edn).
Qui facit per alium facit per se
Origin
Roman-law principle of agency; carried into the English law of agency.
Application
The acts of a duly authorised agent within the scope of authority bind the principal. Codified in the Indian Contract Act 1872, ss 226–228, and applied across commercial agency, employment, and corporate-representation contexts.
Verified source
Source: Black’s Law Dictionary (10th edn).
Delegatus non potest delegare
Origin
Civil-law principle adopted into the English law of agency and administrative law.
Application
A person to whom authority has been delegated cannot in turn delegate that authority unless the original delegation expressly or by necessary implication permits sub-delegation. Applied in Indian administrative law and in the construction of board and managerial powers under the Companies Act 2013.
Verified source
Source: Black’s Law Dictionary (10th edn).
Ignorantia juris non excusat
Origin
Roman-law maxim; recorded in Coke and Broom.
Application
A person is presumed to know the law; ignorance of the law is not a defence to a civil or criminal liability. Subject to limited exceptions in respect of factual mistake and complex regulatory liability.
Verified source
Source: Black’s Law Dictionary (10th edn); Broom, Legal Maxims (10th edn).
Sources and verification
Every maxim card on this dashboard cites at least one of the following authoritative reference works:
- Bryan A Garner (ed), Black’s Law Dictionary (10th edn, Thomson West 2014)
- Daniel Greenberg (ed), Earl Jowitt’s Dictionary of English Law (3rd edn, Sweet & Maxwell 2010)
- Wharton’s Law Lexicon (15th edn, Sweet & Maxwell 2009)
- Herbert Broom, A Selection of Legal Maxims (10th edn, Sweet & Maxwell 1939)
Where a card cites a specific judgment as the locus classicus or as Indian application, the citation has been checked against the standard reporters at the time of writing. Where a citation could not be independently verified, the card carries an explicit verification flag and recommends checking against the official reporter before reliance.
This dashboard is a first edition. Citations follow OSCOLA. The maxims are presented for educational reference and do not constitute legal advice.