Search Investopedia

Common Law

Filed Under » ,
Dictionary Says

Definition of 'Common Law'

In the United States, a body of unwritten laws based on precedents established by the courts. Common law is used in deciding novel cases where the outcome cannot be determined based on existing statutes. The U.S. common-law system evolved from the precolonial system of English common law.

Investopedia Says

Investopedia explains 'Common Law'

The decisions (precedents) of higher courts are binding on lower courts so that the U.S. legal system will have consistency and stability. However, lower courts can choose to modify precedent or distinguish from precedent if precedents are outdated or if the current case is substantially different from the precedent case. Lower courts can also choose to overturn precedent, but this is rare.

Related Definitions

  •

    Community Property

    A U.S. state-level legal distinction of a married individual's assets. Property acquired by either spouse during the course of a marriage is considered community property. For example, ...
    Read More »

  • Community Income

    Income earned by taxpayers who live in community property states. Community income is considered to belong equally to both spouses, just as with all other property that is owned or ...
    Read More »

  • Marital Property

    A U.S. state-level legal distinction of a married individual's assets. Property acquired by either spouse during the course of a marriage is considered marital property. For example, an ...
    Read More »

    • Estate Planning

      The collection of preparation tasks that serve to manage an individual's asset base in the event of their incapacitation or death, including the bequest of assets to heirs and the ...
      Read More »

    • Postnuptial Agreement

      A contract created by spouses after entering into marriage that outlines the ownership of financial assets in the event of a divorce. The contract can also set out the responsibilities ...
      Read More »

    • Prenuptial Agreement

      A type of contract created by two people before entering into marriage. This contract could outline each party's responsibilities and property rights for the duration of the marriage. ...
      Read More »

    • Secondary Liability

      A type of legal obligation where one party assumes legal responsibility for the actions of another party. There are essentially two types of secondary liability: vicarious liability and ...
      Read More »

    • Collateral Source Rule

      A common law rule of evidence pertaining to punitive or other damages awarded to a plaintiff for injury, illness or disability. The Collateral Source rule mandates that damages awarded ...
      Read More »

    • Emblements

      Annual crops cultivated by a tenant which are treated as the tenant's property rather than the landowner's. If a tenant loses possession of the land, he or she is still entitled to ...
      Read More »

    • Affirmative Action

      A policy in which an individual's color, race, sex, religion or national origin are taken into account by a business or the government in order to increase the opportunities provided to ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions