Commercial Law Assignment


Commercial law is a body of law that regulates the conduct of persons, merchants, and businesses who are engaged in trade, sales, and commerce. Also known as business law, it is a broad area of law that interacts with many other areas of law such as environmental regulation, real estate, and food/safety laws.

Some of the main branches of commercial law are consumer protection, contract laws, and intellectual property laws.

Commercial and business laws are associated with some distinct legal issues. Contract violations form a major part of most commercial law legal issues. Transactions between businesses and with customers often involve a contract, and legal issues can frequently arise in connection with the terms of that contract. In particular, a breach of contract can cause significant losses for either party.

In addition to contract issues, common commercial law legal issues include:

  • Advertising and marketing disputes and violations
  • Unfair competition issues
  • Starting a new business
  • Transferring or terminating a business
  • Consumer complaints
  • Protection of intellectual property and trade secrets

As mentioned above, commercial disputes can often involve a mixture of different laws in other areas, such as environmental law or real estate law.

Branches of Commercial Law

  • Contract Law: Contract law seeks to regulate the formation and enforcement of contracts. It sets out the essential elements of a valid contract and the remedies available to parties in the case of a breach of contract.
  • Property Law: This law governs the transactions pertaining to different types of property. Although it mainly includes sale, transfer, lease, and rental of immovable property, it also covers within its ambit bailment of moveable property.
  • Business Regulations: This set of law covers government rules and regulations for business organizations, factories, trade unions, and labour.
  • Intellectual Property Law: This is an umbrella law that provides for patenting of inventions and copyrighting of creative work.
  • Tax Law: Tax law covers government levy of direct and indirect taxes on business transactions. Primary types of taxes include income, sales, excise, gift, capital gain, and profit distribution taxes.
  • Uniform Commercial Code: The UCC or the Uniform Commercial Code aims at bringing consistency to commercial law across all the states of the USA.

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Why is commercial law important?

Commercial law effectively governs trade between businesses and consumers. It creates a regulated system that is fair for both parties so that trade can be conducted in a reasonable manner. Without these sets of laws that govern how commerce is conducted, it would create a scenario that would end up crazy for both businesses and consumers. The job of any commercial lawyer is to ensure that a business conducts commerce in line with the regulations and laws of the country they are operating in. And below you’re going to see exactly how it’s essential to your business’ success.

Helps resolve conflicts and disputes

There are a few stages that generally occur with conflicts and disputes. They are negotiations, mediation, arbitration and then litigation. These are the stages of any conflict or dispute resolution. Unless you are schooled in commercial law, this whole process will leave you feeling overwhelmed. Without a commercial lawyer on your side, you’re not going to know where you stand or how to even approach any disputes or conflicts.

Outlines the legal responsibilities of a business and consumer

If you’re engaging with other parties like customers or suppliers to make your business a success, you need to know that you’re obligated by a set of legal and ethical responsibilities as a business owner. In the business to consumer transaction, as soon as money exchanges hands you are now obliged to fulfil certain legal responsibilities as a business owner. Essentially this legally outlines the responsibilities and relationship between a business and a consumer.

Help understand and manage financial transactions

If you’re exchanging money with other businesses, consumers and even banks you need to know what your obligations are. You also need to understand the legal conditions that govern any exchange of money in the marketplace. This is even more relevant for big businesses that are most likely exchanging sums of money in the millions of dollars bracket. A commercial lawyer can make sure that you’re legally covered from all angles before any financial transaction occurs. You’ll know if there are any risks involved and if so, how you can mitigate or minimise those risks.

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