Commercial Law; An overview, Definition and Examples.
Basic Concept of Commercial Law
Commercial law, also known as mercantile law or trade law, is the body of law that applies to the rights, relations, and conduct of persons and business engaged in commerce, merchandising, trade, and sales.
It is often considered to be a branch of civil law and deals with issues of both private law and public law.
Commercial law includes within its compass such titles as principal and agent; carriage by land and sea; merchant shipping; guarantee; marine, fire, life, and accident insurance; bills of exchange, negotiable instruments, contracts and partnership.
Many of these categories fall within Financial law, an aspect of Commercial law pertaining specifically to financing and the financial markets. It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods. Many countries have adopted civil codes that contain comprehensive statements of their commercial law.
Commercial law governs business transactions including those for sales, trades, commerce, and merchandising. It is often referred to as trade law. If two parties enter into a business transaction, their rights and conduct are covered by commercial law.
Commercial Law; Definition
The commercial law definition covers all aspects of business. Having known rules and regulations helps to promote an efficient market. Transactions are easier to complete when the rules governing the transaction are known.
Commercial law is the body of law that governs the way business firms enter into contracts with each other, execute contracts and remedy problems that arise in the process (Monczka et al., 2010).
Business transactions, such as sales or trades, are covered by commercial law. This classification of law is practiced by commercial lawyers who might specialize in different branches, such as property law, intellectual property law, tax law, and corporate law. Because it covers business trade, commercial law might be referred to as trade law.
The set of laws that pertain here to govern commercial transactions is known as the Uniform Commercial Code (UCC).
Commercial law is a branch of law that regulates the conduct of businesses and commercial transactions. It encompasses a wide range of legal issues, including contracts, sales, negotiable instruments, secured transactions, bankruptcy, and agency.
Contracts A contract is a legally binding agreement between two or more parties. It can be oral or written, and it must have certain elements, such as an offer, acceptance, consideration, and mutual assent. Contract law governs the formation, interpretation, and enforcement of contracts.
Sales Sales law governs the sale of goods, which are tangible items that can be bought and sold. The Uniform Commercial Code (UCC) is a set of laws that governs sales transactions in the United States. It provides rules for the formation of contracts, warranties, risk of loss, and remedies for breach of contract.
Negotiable Instruments A negotiable instrument is a written document that represents a promise or order to pay a specific amount of money. Examples of negotiable instruments include checks, promissory notes, and bills of exchange. Negotiable instruments law governs the transfer and negotiation of these instruments.
Secured Transactions A secured transaction is a transaction in which a borrower grants a security interest in collateral to a lender to secure a loan. The UCC also governs secured transactions, including the creation, perfection, and enforcement of security interests.
Bankruptcy Bankruptcy law governs the process by which individuals and businesses can seek relief from their debts. It provides for the liquidation or reorganization of a debtor's assets to satisfy creditors.
Agency Agency law governs the relationship between a principal and an agent. An agent is a person who acts on behalf of a principal, such as an employee or a sales representative. Agency law provides rules for the formation, authority, and duties of agents.
BASIC QUESTIONS ON COMMERCIAL LAW
What is an example of Commercial law?
An example of commercial law is a lending agreement, also called a promissory note. Its terms dictate when interest or principal payments are to be made along with other key lending provisions.
Which is the most important branch of Commercial law?
The most important branches of commercial law include property, tax, and corporate law. That is because these branches cover the most common business transactions.
Which type of law is also known as Commercial law?
Trade law is also known as commercial law. That is because both cover business transactions and trades across commercial entities.
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