Commercial Law Basics

Business Law

Business Law

For most people who don’t work in the legal profession, understanding what commercial law and corporate law entail is not easy. Most people assume it is usually something to do with large corporations suing each other over patents and broken contracts. That can occur, but quite often the work involved in this area of law is more to do with corporate governance, managing the workforce and managing mergers. This article will go over some of the basics of commercial law and corporate law.

The two areas are often called “Business Law” by those not in the legal profession, but they actually have some interesting differences. It’s also important to note that even small businesses can run into issues that involve corporate or commercial law on a fairly regular basis, so it helps to have a basic understanding of what can be involved.

The main areas that pertain to commercial law are intellectual property rights, copyright ownership, consumer law and contract law.

Contract law is the one that most small businesses run into, if they are dealing with contractual agreements with other businesses or customers on a regular basis. When drafting up a contract, it is advisable to have a contract lawyer on hand to make sure it is sound. If another business may have defaulted on their obligations in a current contract, and if the issue is important, you may need to hire a lawyer with experience in commercial law and contract law especially to pursue damages. If you are signing a contract, it’s important to understand your obligations also, and a contract lawyer can help there.

Consumer law deals with consumer rights when buying goods. Every small business and every consumer should have a basic grasp of the consumer law because it will benefit them in their everyday lives. Understanding what rights you or a buyer have when obtaining an item is essential in case something goes wrong in the purchase process.

Intellectual property rights issues only affect some businesses, but if you are involved in consuming or producing intellectual property you might at some point require a commercial lawyer. Intellectual property can include art, music, patents, inventions, trademarks and so on.

Corporate law deals with issues that affect corporations, like managing dividends, share offerings, dealing with acquisitions and mergers. If you intend on creating a corporation, a corporate lawyer is usually regarded as essential to guide you through a number of issues related to that.

If you intend on listing the company on the stock market, a corporate lawyer can guide you through the process You will need to file compliance documents, manage share issues, dividends and much more, making the lawyer indispensable.