The Basics of Commercial LawMay 28 , 2018
The business world is fraught with disputes that need to be sorted out: some between companies and their customers, some between business rivals, and some between corporations and their government. Commercial law covers all of these issues and more, helping trade run as smoothly as possible.
Types of Business Organizations
|Company||A group of people with a common purpose who conduct commercial or industrial business|
|Corporation||A company that is legally authorized to act as a single entity|
|Conglomerate||Multiple corporations with different purposes that are affiliated with a single parent company|
|Cooperative||A group of people working toward a common goal through a democratically-run enterprise|
|Partnership||Multiple individual people, businesses, governments, or other organizations who have agreed to work together for the sake of their common interests|
|Sole proprietorship||A business that is owned and controlled by a single person|
How Small Businesses Can Protect Themselves
- Hire an experienced commercial lawyer
- Install anti-virus software on all company devices
- Train employees properly
- Invest in small business insurance
- Always have a contingency plan
Related Areas of Law
- Propety Law: Ownership of both real and personal property
- E-commerce: Buying and selling goods & services over the Internet
- Privacy Law: Storing, regulating, and using personal information
- Tax Law: Taxes on income, capital gains, property, etc.
Commercial law handles issues of public and private law. Since its rules are rooted in the extensive world of trade, the majority of its principles come from the practices of those who are involved in the financial market. This body of law applies to the rights and conduct of individuals and businesses that take part in trade, merchandising, and sales.
Distinct laws have been developed in different commercial fields, such as banking, company law, sale of goods and services, mortgages, and real property, to name a few.
Commercial lawyers may take on tasks that involve any aspect of the law, depending on the needs of their clients. Their role is to make sure that transactions run smoothly. It is important that these legal representatives not only understand fundamental laws, but also have good knowledge of current precedents and practices.
For instance, these attorneys may be expected to offer counsel on situations relating to the drafting of contracts or the effects of violating these agreements.
Many jurisdictions have implemented civil codes that state their commercial law. The Uniform Commercial Code, for example, has been widely adopted in the United States. Member nations of the European Union have been putting together laws that regulate sales and other commercial transactions to come up with their own uniform code.
International agreements and conventions control a vast deal of commercial law. The United Nations Commission on International Trade Law is known for monitoring global trade with the help of the World Trade Organization, or the W.T.O.
Commercial lawyers take on a wide range of tasks, and their law firms are usually divided into specific areas where these attorneys specialize in certain types of work. For example, transactional lawyers put together and review legal documents relating to any agreements their clients may be involved in, while contentious lawyers provide assistance when it comes to resolving disputes between their clients and other parties.
The main practice areas of commercial lawyers include corporate law, finance and banking, and dispute resolution, although there are smaller departments, such as tax, real estate, and employment, to name a few.
In corporate law, attorneys make sure that their clients' actions and decisions are aligned with their companies' set of rules. They also draw up the legal documents needed for corporate transactions and activities. By taking on the role of project managers, commercial lawyers see to it that all legal aspects are smoothly carried out.
With finance and banking, lenders face the risks of losing their money. Borrowers could face difficulties with the obligations of returning the financial assistance offered by lenders. Commercial lawyers then make sure that their clients have legal protection against these risks.
When it comes to dispute resolution, attorneys offer advice about the law in relation to the disagreements their clients are involved in. If such disputes lead to formal proceedings, these lawyers are responsible for coming up with the legal documents and guiding the client to all hearings.
All in all, the purpose of enforcing commercial law is to maintain order, resolve disputes, preserve values, and prevent the misuse of power, particularly among those involved in the financial market.
Every industry deals with unique commercial law issues. Hiring lawyers with extensive knowledge and experience in one's particular type of business or transaction will result to more useful advice and workable solutions to legal issues.
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