Maxims of Commercial Law — Latin, English, and the Cases That Test Them


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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.







Contract

Pacta sunt servanda

Agreements must be kept.

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.

Contract

Caveat emptor

Let the buyer beware.

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).

Contract

Quid pro quo

Something for something.

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).

Contract

Lex non cogit ad impossibilia

The law does not compel the impossible.

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.

Contract

Falsa demonstratio non nocet

A false description does not vitiate.

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).

Statutory interpretation

Generalia specialibus non derogant

General provisions do not derogate from special provisions.

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).

Statutory interpretation

Expressio unius est exclusio alterius

The express mention of one thing is the exclusion of another.

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).

Statutory interpretation

Noscitur a sociis

A word is known by the company it keeps.

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).

Statutory interpretation

Ejusdem generis

Of the same kind.

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).

Statutory interpretation

Ut res magis valeat quam pereat

It is better that a thing have effect than perish.

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).

Natural justice

Audi alteram partem

Hear the other side.

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].

Natural justice

Nemo judex in causa sua

No one should be a judge in their own cause.

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.

Equity

Ubi jus ibi remedium

Where there is a right, there is a remedy.

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.

Equity

Ex turpi causa non oritur actio

From a dishonourable cause no action arises.

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).

Equity

In pari delicto potior est conditio defendentis

Where parties are in equal fault, the defendant is in the stronger position.

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).

Equity

Nemo dat quod non habet

No one gives what they do not have.

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).

Tort

Volenti non fit injuria

To one who consents, no injury is done.

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.

Tort

Damnum sine injuria

Damage without legal injury.

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).

Tort

Injuria sine damno

Legal injury without damage.

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).

Tort

Res ipsa loquitur

The thing speaks for itself.

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).

Precedent

Stare decisis et non quieta movere

Stand by what is decided and do not disturb the settled.

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.

Precedent

Ratio decidendi

The reason for the decision.

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).

Precedent

Obiter dictum

A saying by the way.

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).

Contract / agency

Qui facit per alium facit per se

He who acts through another acts himself.

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).

Contract / agency

Delegatus non potest delegare

A delegate cannot further delegate.

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).

Equity

Ignorantia juris non excusat

Ignorance of the law does not excuse.

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.