Mercantile Law
MERCANTILE LAW ACT

CHAPTER 82:02

LAWS OF TRINIDAD AND TOBAGO

Current Authorised Pages
Pages Authorised

(inclusive) by L.R.O.
1–7 ..

L.R.O.

Act
5 of 1844

Amended by
15 of 1881
6 of 1882

18 of 1939

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

2 Chap. 82:02 Mercantile Law

Note on Subsidiary Legislation

This Chapter contains no subsidiary legislation.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Mercantile Law Chap. 82:02 3

CHAPTER 82:02

MERCANTILE LAW ACT

ARRANGEMENT OF SECTIONS
SECTION

1. Short title.
2. Contract or promise not binding unless founded on sufficient

consideration.
3. Not to extend to specialties.
4. Promises and agreements by parol.
5. Consideration for guarantee need not appear in writing.
6. Acknowledgment of debts.
7. Acknowledgments by agents.
8. Indorsements of payments.
9. Simple contract debts alleged by way of set-off.

10. Representations of character.
11. A surety who discharges the liability to be entitled to assignment of

all securities held by the creditor.
12. Co-contractors.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

4 Chap. 82:02 Mercantile Law

1950 Ed.
Ch. 31 No. 4.
5 of 1844.
Commencement.

Short title.

Contract or
promise not
binding
unless founded
on sufficient
consideration.

Not to extend
to specialties.

Promises and
agreements by
parol.

Consideration
for guarantee
need not appear
in writing.

CHAPTER 82:02

MERCANTILE LAW ACT

An Act relating to Mercantile Law.

[26TH JANUARY 1845]

1. This Act may be cited as the Mercantile Law Act.

2. No contract, agreement, or promise made or entered into
by any person by words spoken, or by any writing not being a
specialty, shall be of any force or effect in law or shall bind any
party thereto, unless the contract, agreement, or promise is founded
upon some valuable thing or consideration sufficient, according
to the principles of the law of England, to support the same against
the party sought to be charged therewith.

3. Nothing contained herein shall extend to alter or affect
the law with respect to any contract, agreement, promise or
obligation contained in any specialty.

4. No action shall be brought whereby to charge any heir,
executor or administrator upon any special promise to answer
damages out of his own estate, or whereby to charge the defendant
upon any special promise to answer for the debt, default or
miscarriage of another person, or to charge any person upon any
agreement made upon consideration of marriage, or upon any
agreement which is not to be performed within the space of one
year from the making thereof, unless the agreement upon which
the action is brought, or some memorandum or note thereof shall
be in writing, and signed by the party to be charged therewith, or
some other person thereunto lawfully authorised by him.

5. No special promise made by any person to answer for the
debt, default or miscarriage of another person, being in writing,
and signed by the party to be charged therewith or some other
person by him lawfully authorised, shall be deemed invalid to

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Mercantile Law Chap. 82:02 5

Acknowledgment
of debts.

Acknowledgments
by agents.

support an action, suit or other proceeding to charge the person by
whom the promise has been made, by reason only that the
consideration for the promise does not appear in writing, or by
necessary inference from a written document.

6. In any action for the recovery of any debt or damages
grounded upon any simple contract, no acknowledgment or promise
by words only shall be deemed sufficient evidence of a new or
continuing contract whereby to take any case out of the operation
of any law or Act establishing any prescription or limitation of
action affecting the contract, or for giving relief to insolvent
persons, or making cession of their property for the benefit of their
creditors, or to deprive any party of the benefit of any such law or
Act, unless the acknowledgment or promise is made or contained
in or by some writing, to be signed by the party chargeable thereby;
and where there are two or more joint contractors, or heirs, or
executors or administrators of any contractor, no such joint
contractor, heir, executor or administrator shall lose the benefit of
such law or Act, so as to be chargeable in respect or by reason only
of any written acknowledgment or promise made and signed by
any other or others of them. However, nothing contained herein
shall alter or take away or lessen the effect of any payment of any
principal or interest made by any person whatsoever. Further, in
actions to be commenced against two or more such joint contractors,
or heirs, or executors or administrators, if it appears at the trial or
otherwise that the plaintiff, though barred by any such law or Act,
as to one or more of such joint contractors, or heirs, or executors
or administrators, shall nevertheless be entitled to recover against
any other or others of the defendants, by virtue of a new
acknowledgment or promise or otherwise, judgment may be given
and costs allowed for the plaintiff as to such defendant or defendants
against whom he shall recover, and for the other defendant or
defendants against the plaintiff.

7. An acknowledgment or promise made or contained by or
in a writing signed by an agent of the party chargeable thereby,
duly authorised to make the acknowledgment or promise, shall
have the same force and effect in all cases as if the writing had
been signed by such party himself.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

LAWS OF TRINIDAD AND TOBAGO

6 Chap. 82:02 Mercantile Law

Indorsements of
payments.

Simple contract
debts alleged by
way of set-off.

Representations
of character.

A surety who
discharges the
liability to be
entitled to
assignment of
all securities
held by the
creditor.

8. No indorsement or memorandum of any payment written
or made upon any promissory note, bill of exchange or other
writing, by or on the behalf of the party to whom the payment is
made, shall be deemed sufficient proof of the payment, so as to
take the case out of the operation of this Act, or of any other such
law or Act as is mentioned above.

9. This Act shall be deemed and taken to apply to the case
of any debt on simple contract, alleged by way of set-off on the
part of any defendant.

10. No action shall be brought whereby to charge any person
upon or by reason of any representation or assurance made or given
concerning or relating to the character, conduct, credit, ability, trade
or dealings of any other person, to the intent or purpose that such
other person may obtain credit, money or goods, unless the
representation or assurance is made in writing, signed by the party
to be charged therewith.

11. Every person who, being surety for the debt or duty of
another, or being liable with another for any debt or duty, pays the
debt or performs the duty, shall be entitled to have assigned to
him, or to a trustee for him, every judgment, specialty or other
security which is held by the creditor in respect of the debt or duty,
whether the judgment, specialty or other security is or is not deemed
at law to have been satisfied by the payment of the debt or
performance of the duty, and such person shall be entitled to stand
in the place of the creditor, and to use all the remedies, and, if need
be, and upon a proper indemnity, to use the name of the creditor in
any action or other proceeding at law or in equity, in order to obtain
from the principal debtor, or any co-surety, co-contractor or co-
debtor, as the case may be, indemnification for the advances made
and loss sustained by the person who has so paid the debt or
performed the duty, and the payment or performance so made by
the surety shall not be pleadable in bar of any such action or other
proceeding by him. No co-surety, co-contractor or co-debtor shall
be entitled to recover from any other co-surety, co-contractor or
co-debtor, by the means mentioned above, more than the just

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt

L.R.O.

LAWS OF TRINIDAD AND TOBAGO

Mercantile Law Chap. 82:02 7

Co-contractors.

proportion to which, as between those parties themselves, the
last-mentioned person shall be justly liable.

12. Whenever there are two or more co-contractors or
co-debtors, whether bound or liable jointly only or jointly and
severally, or executors or administrators of any contractor or
debtor, no such co-contractor or co-debtor, executor or
administrator shall lose the benefit of any law relating to the
limitation of actions, so as to be chargeable in respect or by
reason only of payment of any principal, interest or other money,
by any other or others of such co-contractors or co-debtors,
executors or administrators.

UNOFFICIAL VERSION


UPDATED TO DECEMBER 31ST 2014

MINISTRY OF LEGAL AFFAIRS www.legalaffairs.gov.tt