Study-Unit Description

Study-Unit Description


CODE CML3009

 
TITLE Commercial Obligations, Commercial Sale and Credit Instruments

 
UM LEVEL 03 - Years 2, 3, 4 in Modular Undergraduate Course

 
MQF LEVEL 6

 
ECTS CREDITS 4

 
DEPARTMENT Commercial Law

 
DESCRIPTION This study-unit delves into the applicability of the general private law rules governing obligations to the commercial law sphere and the modifications introduced by commercial law. The unit seeks to analyse the various Commercial Code provisions which modify the Civil Code provisions on obligations with respect to obligations of a commercial nature such as the joint and several liability of co-debtors and the surety with the principal debtor, the effect of the implied resolutive condition and assignment of litigious rights.

The study-unit also analyses the rules applicable to the formation of commercial contracts, particularly contracts stipulated by means of correspondence, offer and acceptance, offers by means of advertisements or catalogues or by the exhibition of goods, the validity of exclusion and limitation of liability clauses in contracts; standard form contracts.

It also enables the students to appreciate the applicability to commercial sales of the rules governing the contract of sale in general and the modifications introduced by commercial usage.

This study-unit will also introduce students to the issues arising from the transfer of property and risk as between seller and buyer, with special emphasis on credit sales, hire-purchase and leasing arrangements.

The last part of the study-unit examines credit instruments, their juridical nature, definition, types and their various characteristics, and the source of the obligation. It examines in particular one of the most important of all the credit instruments - the bill of exchange including the definition of a bill of exchange and its fundamental characteristics.

N.B The first part of the unit dealing with commercial obligations is based on the provisions contained in Title V of Part 1 of the Maltese Commercial Code, namely articles 110 to 118. The second part is based mainly on Maltese case law regarding commercial sales and the third part dealing with Bills of Exchange and other credit instruments is based on the provisions contained in Title VII of Part 1 of the Maltese Commercial Code, namely articles 123 to 263.

Study-unit Aims

- To enable students to understand that, although the general law of obligations contained in the Civil Code is largely applicable to obligations of a commercial nature, the law introduces some changes to some of these rules in respect of commercial obligations;
- To enable students to understand the issues which arise in connection with contracts concluded between persons "at a distance";
- To examine commercial sales and their importance for traders;
- To amplify their knowledge regarding the interplay between the general rules of the Civil Code and the special rules contained in the Commercial Code;
- To enable students to get acquainted with the notion of credit instruments and in particular bills of exchange.

Learning Outcomes

1. Knowledge & Understanding:
By the end of the study-unit the student will be able to:

- Navigate through the legal provisions which create special framework for Commercial sales as distinct from other sales governed exclusively by the Civil Law;
- Gain a thorough knowledge of the legal provision governing commercial contracts, including the features usually found in such contracts including exclusion of liability clauses and of their increasing importance for traders in their domestic and international transactions;
- Comprehend the particular effects of standard form contracts and of commercial usage;
- Appreciate the interplay between the Civil and Commercial Codes and to reflect on the continued relevance of the latter;
- Demonstrate an understanding of the uses of credit instruments and the implications arising therefrom.

2. Skills:
By the end of the study-unit the student will be able to:

- Be in a position to practice in commercial law at a high level and to offer services in this area to future employers and clients;
- Use the knowledge acquired from this study unit to enhance his fuller understanding of how commercial law operates as a distinct subject but also in its relationship to other source of legislation especially the Civil Code.

Main Text/s and any supplementary readings

- Commercial Code
- Civil Code

 
ADDITIONAL NOTES Students taking this study-unit need to have a background in law.

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Sept. Asst Session Weighting
Examination (2 Hours) SEM2 Yes 100%

 
LECTURER/S Ilona Schembri (Co-ord.)
Nikolai Vella Falzon

 

 
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints.
Units not attracting a sufficient number of registrations may be withdrawn without notice.
It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit