For example, one of the first rules of the common law is that a man cannot give what he himself has not. Hence, a man who has no title to goods cannot give title. Consequently, when you buy a thing, if you are to be sure that you have title to it, you must inquire into the title of that thing back to its remote possessors, to make sure that no one in the chain of title stole it or obtained it by fraud. The contra is the case. Credit, not distrust, is the basis of commercial dealings.
Mercantile genius consists principally in knowing whom to trust and with whom to deal . . .
The Law Merchant dealt with many choses in action, and it would have been very inconvenient, for example, when a man took a bill of exchange, if he were not able to sue on it in his own name or would have to inquire into the title of all previous endorsers. Hence, the Law Merchant established certain documents or choses in action which were transferable by delivery and endorsement, or by delivery, so that the holder could sue in his own name and which passed good title to the transferee who took them in good faith, notwithstanding the transferor had no title. They could be sued on by the holder in his own name and were not affected by previous lack of title. This instrument was the original negotiable instrument. Hence, the law of negotiable instruments, with a few exceptions, is founded entirely upon the customs of merchants.