I. What is Commercial Law?
We are living in a developing world. In order to develop something or in order for a thing to develop itself needs some change. The world we live in does the same thing too. It does the honors to changes while developing itself. Commerce is one of the biggest factors in this development process. At this juncture, commerce becomes one of the significant areas in the field of law that regulates the conduct of merchants, persons, businesses who are operating in commerce, trade and sales. Commercial law is sometimes referred to as business law or corporate law. It focuses on the laws that govern commerce, trade, sales and merchandising, as well as the businesses and individuals who participate in those activities. Commercial law includes laws on business contracts, sale of goods, banking, insurance, finance, partnership, bankruptcy, and taxation. It defines rights and obligations of parties in different types of contracts, such as agency agreements, guarantees, and contracts for carriage, sales and purchase of goods.
II. Why Commercial Law?
Trade, thy name is commerce has an important place in international law because in the simplest term, states merchandise with each other via maritime trade, air commerce and land trade which helps economic growth. In these extensive commercial activities, a great variety of law areas in commercial law are benefited from such as international commercial law, international commercial contract law, international business contract law, road transport law and the list goes on. Therefore, commercial law is heavily regulated by governments and the fact that companies rarely have either the time or the expertise to handle all their legal matters themselves, they look for advices from commercial lawyers to guide them through the legal implications of their work.
III. Areas of Commercial Law
Seeks to regulate the formation and application of contracts. This law defines the essential elements of a valid contract. In case one of the parties breaches a clause in the contract, it determines and organizes how the other party should obtain his rights.
It determines the direct and indirect government taxes on commercial transactions. It includes basic types of taxes such as income and sales tax, capital gains and dividend taxes.
Company Law - Corporate Law
Deals with the formation, management and termination of companies. This law defines the legal provisions for company matters, such as election of members of the board of directors, capital increase, how to distribute profits between partners, redeem shares. Plus, it deals with mergers and acquisitions. You can reach “Corporate Law” from here.
Intellectual Property Law
Includes patent registration, creative work rights, designs and artwork. As the law not only protects intangible property, but also intangible (intellectual) property.
Covers a set of governmental rules and regulations related to businesses, factories, labor unions, and workers. These rules include employee hiring, advertising, business licenses, privacy and more.
In addition to the areas listed above; merchant sales, consumer protection, trademark law, competition/antitrust law, environmental law, corporate governance, international trade law are the areas which are used in commercial law.
BAL Law Firm is coming up with strong and beneficial solutions to their clients as an international trade law firm. Our attorneys have experiences especially in international trade law.
IV. Comercial Law in Turkey
Turkish commercial law review is important to make because the legal system in Turkey involves codified sets of rules or legislations. In 2012, some major changes in the Turkish Commercial Code were made. The rules of commerce were redefined with the new Turkish Commercial Code No: 6102. It entered into force in July 1, 2012. The new law was also followed by supplementary legislations as well as revisions in the Capital Market Law.
The main written legislation for Turkish Commercial Law is The Turkish Commercial Code No: 6102. This book is divided into six fields as shown below:
Commercial Enterprises (Articles 11 to 123)
The TCC defines a commercial enterprise as an enterprise that goes beyond the scope of an artisanal or “craftsman” enterprise. Its aim is to generate profit and to generate its activities. This concept is of particular importance as it plays a role in a range of issues from defining a “merchant” to a “commercial transaction” It also determines the scope of a limited general partnership and limited partnership business.
This section is arranged in articles from 124 to 644. In this part of the Code, the types of companies are recognized under the TCC.
This section is arranged in articles from 645 to 849. In this section of the Code, cheques and promissory notes take part. These are one of the important payment instruments in commercial law.
Issues of Transportation
This section is arranged in articles from 850 to 930 and it provides general rules governing transportation. It also deals with issues on, inter alia, the carriage of goods, passengers and freight forwarding.
This section is arranged in articles from 931 to 1400. It includes both international conventions that Turkey has chosen to abide by, and domestic law.
Law of Insurance
This section is arranged in articles from 1400 to 1520. In this section, provisions on insurance contracts and the supervision and regulation of insurance law take place.
In addition to Turkish Commercial Code, Turkish Code of Obligations is also one of the sources of Turkish Commercial Law.
Apart from these; Turkish Protection of Competition Code Law No:4054, Turkish Capital Market Law No:6362, Turkish Law of Checks Law No:5941 are the laws that are benefited from in Turkish Commercial Law.
United Nations Convention on Contracts for the International Sale of Goods (CISG), of which we are a party as the Republic of Turkey, is an agreement prepared by the United Nations International Trade Commission (UNCITRAL) and accepted on April 11, 1980. CISG, which entered into force on 1 August 2011 in the Republic of Turkey, is a part of our domestic law.
There are too many either natiional or international legal disputes in commercial law cases in Turkey. Therefore, BAL Law Firm, as a commercial law firm Turkey at the same time, is providing their clients beneficial solutions to their problems in commercial law with their expertized commercial law attorneys.
V. International Commercial Law
We put a strong emphasis on what kind of importance that commerce has in international arena. That’s why, in this article, it’ll be beneficial for readers to give some information about international commercial law.
International Commercial Law is a body of applicable rules, principles and customary practices that govern cross-border commercial activities and transactions of private parties. International commercial law is a part of private international law. Moreover, international economic law is the counterpart of international commercial law because it is governing the commerce relations between states. In these fields of law, there is a strong tendency for harmonization and unification, for example in UNCITRAL Model laws. Long things short, International commercial law is a set of rules overseeing the sales made between businesses when more than one country is involved in the transaction. A branch of international law this field has a major impact on the economic development of the world. The United Nations Convention on Contracts for the International Sale of Goods is the code of rules and conduct by which international commercial law operates.
The rules command the importance of an international commercial contract. These international commercial contracts take part in the transaction agree to certain guidelines about joining the foreign market. Among these, guidelines are agreements to export directly, to utilize a foreign representative to sell and distribute, to join forces with a foreign-owned company, and also to identify someone to franchise the business in the foreign country. Points like these make sure that both the buyer and seller know what to expect from the transaction. Also by this way, each party can be aware of their obligations under international business law.
International commercial law marries principles from the business world with basic international diplomacy. By covering the finer points of topics like ethically entering the foreign market, shipping goods, and guaranteeing the right to sue, the law lays the groundwork for a greater economic understanding. Establishing rules of fair trade and ethical business dealings are the main intent of international commercial law.
BAL Law Firm, as an international commercial law firm, is providing their clients beneficial solutions to their clients in international commercial law with their expertized attorneys.
VI. The Other Side Of Commercial Law: Commercial Contract Law
In order to understand better what commercial law is, we should know the main instrument that is used in this field of law: Contracts. Commercial contracts are documents that cover a combination of legal and commercial factors. It shortly refers to a legally binding agreement between parties in which they are obligated to do or restrain from doing particular things. Commercial contracts are agreements regulating business relationships between individuals or businesses. Commercial contracts can be written, verbal, or implied in a formal or an informal manner. They also can include all aspects of a business, such as hiring, wages, leases, loans and employee safety. A breach of commercial contract takes place when a contracting party fails.
The things that a commercial contract should involve: If it is a distribution agreement then there should be a clear set of terms as to how much and how often goods should be distributed by the party that has agreed to do so. It may also include a wide range of clauses, conditions and other terms like “good faith” and “unfair” which may become useful during a dispute, but a solicitor will guide you through these specifics.
Within these terms should be clauses. If the agreement isn’t met then your business should receive some sort of compensation for that breach of trust. This links very nicely on our next question you may have.
Dates are also essential when it comes to the contract. There should be a start date and probably an end date to the agreement. There is no limit as to how long or short the length of a contract can be, but the type of deal should be specified, whether it is only for a fixed-term or otherwise
Some of the examples of commercial contracts can be listed as the following:
• Joint venture agreement
• Shareholders agreement
• Business purchase agreement
• Purchase and supply agreement
• Sale and distribution agreement
• Franchise agreement
• Non disclosure agreement
• Employment contracts
• Intellectual property license and assignment
• Loan and finance agreements
• Partnership agreement
The difference between commercial law and contract law: Commercial law refers to the umbrella under which you can find contract law. It refers to any legislation that pertains to merchants exchanging goods and services and dealing with any transactions between buyer and seller. Contract law is a subdivision of commercial law, or a silo of the overarching umbrella. Other subdivisions of commercial law include things like labor law. Contract law under commercial law refers to any contract entered into during a business transaction – this can be the buying and selling of a product or service for example.
VII. The Difference Between Commercial Law and Financial Law
Financial law is ensuring that when your client lends money against collateral that they can collect on that collateral if the loan goes into default. For example, a lender may lend hundreds of millions of dollars to buy a cargo ship and has to be able to seize the ship no matter where in the world it’s located at any given moment. You will see “security agreements” and “mortgages”.
Commercial law usually refers to law relating to interactions between the company and another third party, such as terms and conditions, license agreements, reseller agreements etc.
VIII. The Difference Between Commercial Law and Corporate Law
Corporate law is the creation and maintenance of corporations and corporate structures, including the buying and selling of shares and the assets of corporations, as well as looking at the tax consequences of transactions. You will see things like “articles of amalgamation” and “requisition for shareholders meeting” or “oppression remedy”.
Commercial law is the law of buying and selling, both tangible things like goods and intangible things like intellectual property rights. In most cases, it’s ensuring that the seller gets paid for the goods once they’re delivered and that the seller gets the goods they paid for. You will see things like “bill of lading” and “letter of credit”.
X. Transportation Law
Resulting from increasing globalization, transports and logistical services have long since ceased to be limited to national activities. Transport and forwarding services are provided across borders to every corner of the world.
Logisticians also perform a variety of other activities like picking, packing or final assembly.
Transportation law covers most aspects of travel and commerce on the streets and highways, in the air, and on the water — including regulation of vehicles and vessels; implementation of safety standards; and oversight of shipping activity. Long things short, transportation law is a branch of commercial law. It deals with regulating the transport of goods.
Why do you need a lawyer? The regulation of who may transport through the air, sea or on land is a separate issue that often necessitates an attorney. How licenses are granted or revoked, for instance, is a common issue. Who do you turn to if your pilot’s license is in jeopardy? What to do if your railroad or trucking access is at stake in a federal hearing? How about if criminal charges come to bear after a transportation law incident?
These are all instances when you would want to consult with legal counsel. Therefore, when faced with a legal issue where transportation law applies, you should consult an attorney familiar with these special laws.
BAL Law Firm, as a transportation law firm, is providing their clients beneficial solutions to their problems in transportation law.
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