Common law is a body of rulings made by judges on the basis of community customs and previous court decisions. It forms an essential part of the legal system of many English-speaking countries, including the United States and Canada. Common law covers such matters as contracts, ownership of property, and the payment of claims for personal injury.
Early in England’s history, judges decided cases according to the way they interpreted the beliefs and unwritten laws of the community. If another judge had ruled in an earlier, similar case, that judge’s decision was often used as a precedent (guide). After many judges decided the same question in a similar way, the ruling became law.
Common law is often contrasted with civil law, a body of rules passed by a legislature. Under civil law, a judge decides a case by following written rules, rather than previous court decisions. Common law also differs from equity, a set of standards developed to allow greater flexibility in court decisions. During the late Middle Ages, England created courts of equity to decide cases that courts of common law might treat too strictly. These courts decided cases by broad principles of justice and fairness, rather than by the rigid standards of common law. The monarch’s chancellor presided over a court of equity called the court of chancery.
The legal system of the United States has developed from English common law and equity. Only one U.S. state, Louisiana, modeled its legal system on civil law. Louisiana used the civil law of France, called the Code Napoleon. During the late 1800’s, many states combined their courts of common law and courts of equity. One group of judges administers the combined courts. In Canada, similarly, only the province of Quebec based its legal system on French law.