Fundamentals: Legal Families and Applicable Law

National legal systems worldwide can be grouped into three major legal families:

·        Civil Law (Continental Law): Based on codified statutes and regulations, civil law systems are prevalent in continental Europe and have well-developed private law, especially in contract and commercial law.

·        Common Law (Anglo-American Law): Unlike civil law, common law is largely uncodified and relies on case-by-case judicial decisions and precedent. Known as "case law," it is dominant in the UK, the United States, and many other English-speaking countries. This legal family has a fully developed private law system with a strong emphasis on commercial and contract law. Common law principles and contract practices have seen widespread adoption internationally.

·        Islamic Religious Law*: In many Islamic countries, religious law influences the legal system to varying degrees. While criminal and family law are deeply rooted in Islamic traditions, contract law is less developed.

*Note: For purpose of this website, contracts governed by Islamic religious law are not further considered.

Due to the differences between civil law and common law traditions, contracts in these legal systems vary significantly. Civil law allows for concise drafting, as statutory provisions serve as a safety net. In contrast, common law requires far greater detail, covering even remote contingencies to ensure maximum enforceability in court.

The following sections provide insights into the specific characteristics of contract language in Anglo-American agreements.