Basics of Commercial Law

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If you want to start a business, it’s essential you have a grip on certain concepts, or you risk getting into trouble over information you weren’t aware of. What we’re going to present today is commercial law and, while you don’t need to know everything about it unless this is your field of expertise, it is a good idea to have some knowledge about what it entails. Commercial law, otherwise known as business law, is that part of the legal system that deals with the rights, conduct and relations of the persons involved in business or commerce, trade, sales, and merchandising.

Generally, it is considered a part of civil law, and it can deal with matters of private and public law. Basically, it makes sure that everyone conducting business acts according to certain regulations, thus protecting the rights of business people but consumers as well; it also enforces the obligations that those involve in business have. One could say that it acts on a more practical level similar to business ethics, but the methods are entirely different; nevertheless, their goals are similar and deal with keeping good business conduct in everything.  Thus, commercial law can regulate hiring practices, corporate contracts, and the manufacturing and selling of consumer products and services.

For example, a corporate contract will be subject to commercial law; if one of the parties involved doesn’t respect the agreements of the contract and everything mentioned in it, the other party or parties can take this to a court of law and demand justice. The same applies to other aspects of conducting business, like wrongful termination of a hiring contract, thus disrespecting the rights of the employee. Moreover, if a business entity does not respect regulations for manufacturing and selling their products, they can be brought to court by dissatisfied customers, or even by the state, which acts to protect its citizens.

In order to be more precise, commercial law deals with various commercial fields, some of which are: banking, bankruptcy, contracts, debtor and creditor, mortgages, consumer credit, real estate transactions, sales, secured transactions and others. It is difficult to explain in layman’s terms what commercial law does exactly, but we can say where it acts and what its purposes are. Thus, other aspects of business and commerce that this branch of the law regulates and oversees are labor laws, competition laws, tax laws, partnerships, contracts, insolvency, etc. Thus, this type of law is directly connected to the business world, and it is involved in processes like acquisitions or mergers, or in activities like business development, investing, national economy, and even national and international trade.

These are the basic concepts explaining what commercial law is; however, if you are curious about a field in particular, you need to discuss with a professional, or find the information you need in authorized books and manuals on the subject.

June 2022