The Bill of Exchange and the Dynamics of Legal Interpretation (15th–18th Centuries)

Abstract

The evolution of the bill of exchange from the 14th century onwards can be traced back to the interplay between international mercantile practice, legislative approaches and juridical interpretation. A meticulous examination of mercantile documents and sources of practice has the potential to refine the prevailing monolithic image of the emergence of bills of exchange and their corresponding norms. For a considerable period, from approximately 1450 to 1680, the regulatory framework governing bills of exchange, particularly with regard to the apportionment of liability among the parties involved, was characterised by indeterminacy. In the context of Western Europe, a plurality of approaches and principles coexisted, with no single legal authority considered preeminent. Gradually, a synthesis of Genoese and Dutch methodologies emerged as the prevailingapproach. The eventual success of the Genoese-Dutch views was a dynamic change following from new developments in the use of financial instruments as well as the prestige of banking firms and cities.