Commerce can be defined as an organization formed for the purpose of generating profit within business activities. Commercial law is the branch of law that regulates all relationships in the organization and operations of commercial enterprises.
Whether they are sectoral or not, such as commercial contracts, international activities, banking, insurance, transportation, supply of goods, and supply of services, all activities of a commercial enterprise fall within the scope of commercial law.
I. Areas Related to Commercial Law
Commercial law holds a significant place. Even companies and governments in overseas countries engage in merchandise exchange through sea trade, air trade, and land trade that helps economic growth. In these comprehensive commercial activities, various legal fields in commercial law such as international trade law, insurance law, tax law, maritime and aviation law, road transportation law are utilized. Therefore, commercial law is heavily regulated by governments, and companies seek guidance from commercial lawyers to advise them on the legal consequences of their business, given the fact that they rarely have the time or expertise to handle all their legal matters on their own.
It attempts to regulate the formation and enforcement of contracts, defining the essential elements of a valid contract. In the event of a breach of a term of the contract by one of the parties, the law determines and regulates how the other party is to obtain their rights.
It deals with the establishment, management, and dissolution of companies. This law defines legal provisions related to company matters such as the election of board of directors, capital increase, distribution of profits among partners, redemption of shares. Additionally, it deals with mergers and acquisitions. You can access “Corporate Law” from here.
It determines the direct and indirect government taxes on commercial transactions. It includes basic tax types such as income tax, sales tax, capital gains tax, and dividend tax.
Intellectual and Industrial Property Rights
Patent registration includes creative works rights, designs, and artistic works. The law not only protects tangible property but also intangible (intellectual) property.
It encompasses a series of government regulations and rules related to businesses, factories, labor unions, and workers. These rules include employee hiring, advertising, business licenses, privacy, and more.
In addition to the areas mentioned above, trade law is also used in the fields of merchant sales, consumer protection, trademark law, competition/antitrust law, environmental law, corporate governance, and international trade law.
As an international trade law firm, BAL Law Firm provides its clients with strong and beneficial solutions. Our attorneys have extensive experience in international trade law, specifically.
II. International Trade Law
We emphasize the importance of trade on an international level. Therefore, providing information about international trade law in this article will be useful for readers.
International Trade Law is a set of applicable rules, principles, and traditional practices that govern the cross-border commercial activities and transactions of private parties. International trade law is a part of international private law. Additionally, international economic law is the equivalent of international trade law, as it governs trade relations between states. There is a strong trend towards harmonization and unification in these areas of law, such as in the UNCITRAL Model laws. In short, International trade law is a set of rules that regulate sales between businesses when more than one country is involved in the transaction. This area of law, which is a branch of international law, has a significant impact on the world’s economic development. The United Nations Convention on Contracts for the International Sale of Goods is a set of rules and behavioral standards that operate within international trade law.
The rules command the importance of an international commercial contract. These international commercial contracts accept certain guidelines regarding entry into foreign markets for direct exports, using a foreign representative for sales and distribution, joining forces with a foreign company, and also identifying someone to franchise the business in a foreign country. Such points enable both the buyer and the seller to know what to expect from the transaction. In this way, each party can be aware of their obligations under international trade law.
International trade law combines the principles of business with international diplomacy. The law prepares the ground for a greater economic understanding by addressing the intricacies of entering foreign markets ethically, shipping goods, and ensuring the right to litigation. The main purpose of international trade law is to establish fair trade and ethical business agreements.
BAL Law Firm provides its clients with useful solutions in international trade law through its expert lawyers as an international trade law firm.
III. International Trade Contracts
To better understand what commercial law is, we need to know the fundamental tool used in this area of law, which is contracts. Commercial contracts are documents that encompass a combination of legal and commercial factors. In short, they represent a legally binding agreement in which parties are obligated or prevented from doing certain things. Commercial contracts are agreements that regulate business relationships between individuals or companies. They can be written, verbal, formal, informal, or implied. They may also include all aspects of a business, such as hiring, wages, leasing, credit, and employee safety. When a party fails to perform a contract, a breach of the commercial contract occurs.
What a commercial contract should include: If this is a distribution agreement, there should be a clear set of terms regarding how much and how often the goods will be distributed by the party who agrees to do so. Additionally, there can be a wide range of provisions, conditions, and other terms that could be helpful in case of a dispute, such as “good faith” and “unfair,” but a lawyer will guide you on these details.
These terms should include clauses. If the agreement is not met, your business should be entitled to some form of compensation for this breach of trust. This is nicely linked to our next question that you may have.
When it comes to contracts, dates are also important. The contract should have a start date and probably an end date. There is no limitation on how long or short a contract can be, but only the type of agreement, whether it is a fixed-term or otherwise, should be specified.
Some examples of commercial contracts are as follows:
- Joint venture agreement
- Shareholders agreement
- Business acquisition agreement
- Purchase and supply agreement
- Sales and distribution agreement
- Franchise agreement
- Confidentiality agreement
- Employment contracts
- Intellectual property licensing and assignment
- Credit and finance agreements
- Partnership agreement
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 related to traders dealing with the exchange of goods and services and any transaction between a buyer and seller. Contract law is a subcategory or silo under the inclusive umbrella of commercial law. Other subcategories of commercial law include things like labor law. Contract law within the scope of commercial law refers to any contract entered into during a commercial transaction – this could be, for example, the sale and purchase of a product or service.
IV. Transport 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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We, as BAL Law Firm, provide consultancy and dispute resolution services for all kinds of legal issues falling within the scope of commercial law.