Applying Ethical Rules in British Negotiable Instruments Law

It seems that the common law legal system - which was formed under the influence of the procedures in the English courts and a part of the law of negotiable instruments-which is called in Iranian negotiable instruments law as cambial law- lacks general legal rules which are inspired from ethic due to satisfying commercial needs.

In this study, the flow of ethical rules such as the estoppel rule, the doctrine of clean hands, good faith, etc. in the British multi-layer legal system has been investigated in this analytical-descriptive method.

Ethical Considerations: 

The existence of some rules and institutions has guaranteed the ethical functioning of the negotiable instruments in the multi-layered system of English law. For example, the rule of estoppel does not only prevent the signatory of instruments from invoking to the defects of the original relationship against the holder based on the validity of the instrument, but also in case of non-payment of the amount stated in the instruments and making a protest, its payment as a civil liability imposes on him. The rule of clean hands means that a person who owes money to another cannot file a lawsuit against him for the same amount.

English law guarantees the necessary standards for appropriate cambial law through the formulation and development of several ethical rules.