We explain what commercial law is, what its characteristics and importance are, its sources and its branches.
What is commercial law?
Commercial law, also called commercial law, is a branch of private law that aims to regulate the exchange of goods and services between private parties that is, commercial acts and their legal implications, to guarantee that they always comply with the provisions of the law.
Commercial law guarantees the correct development of the commercial activity of a country and establishes the framework for intervention by public powers if it is necessary to do so, for example, in consumer protection. Its purpose is that these transactions occur in the fairest way possible and that the commercial actors are correctly and legally constituted.
The financial system, in particular, is usually heavily regulated, given the enormous sums of money it moves. Commercial law supervises the relationships between different companies, between them and their clients, between sellers and buyers, and even the legal mechanisms to found a company or open a business.
In this sense, commercial or mercantile codes, trade laws (internal and foreign), financial operations and credit laws, as well as other instruments that regulate commercial and financial activity in countries, are part of commercial law. .
Commercial law may operate differently in countries with continental law systems (heirs of the ancient Roman legal system) and countries with common law systems (Common Law).
See also: Private international law
Characteristics of commercial law
Commercial law is characterized by the following:
- It is a professional right. This means that it deals with the trade of a specific sector, such as commercial and business.
- It is individualistic. This means that it does not usually consider transactions in which public powers intervene, but rather focuses exclusively on commercial operations between private parties.
- It is customary. This means that it is based on the commercial legislation of each country, which is why it can vary significantly from one place to another.
- It's progressive. This means that it is updated as the conditions of the business year change.
- Is it global or internationalized. This means that it also regulates commercial transactions between individuals or international companies, as long as they have the country in question as their origin or destination.
Sources of commercial law
Commercial law contemplates three main sources:
- The law. Since commercial law is also a form of positive law, it has written and published regulations of the codes that constitute commercial law.
- The custom. Since trade long predates the emergence of this branch of law, it is based on the specific business traditions of your community or country. The first legislation on trade in the West dates back to the 14th and 15th centuries.
- The jurisprudence. The different national and international legal organizations interpret commercial law to resolve disputes and thus create a corpus of historical decisions that serves as a background for evaluating future cases.
Branches of commercial law
Commercial law comprises an extremely large area of action, which can be subdivided into the following specialized branches:
- Banking law. It is the one that regulates the exercise of banks and other similar financial entities.
- bankruptcy law. It is the one that contains the substantive and procedural rules regarding the collection of debts and the actions of creditors.
- Contract law. It is one that has to do with contracts, obligations and rights acquired voluntarily when signing a document.
- corporate law. It is the one that deals with business subjects and their forms of association. It is also known as company law or corporate law.
- Industrial property law. It is one that defends the productive exercise, industrial creativity and the way in which industrial activities operate, are founded and grow.
- Foreign exchange law. It is the one that deals with the regulations of securities, shares and investments.
- Maritime law. It is one that regulates the exchange of goods and services between countries and/or regions, through the merchant navy.
Importance of commercial law
Commercial law is key to guaranteeing justice and fairness in commercial and financial transactions combat corruption and economic crime, and reduce inequality and the concentration of wealth in few hands.
By establishing clear rules for commercial acts (such as sales, purchases, rentals and financial investments, founding of companies and commercial companies), economic justice is promoted and the generation of wealth in the nation is protected.
Examples of commercial law
An example of the application of commercial law is the rules governing the composition of companies financial companies and other organizations dedicated to commerce. Through them, the State ensures that there are no irregularities regarding the legal status of those involved, the origin of the funds, the legality of the commercial activity and other matters.
Another example is the signing of promissory notes and payment commitments, legal documents signed by the parties involved in which a commitment to pay for the provision of services or goods received is established before the law and justice. These types of documents are drafted and complied with in accordance with the provisions of the relevant codes of commercial law.
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References
- Ascarelli, T. (2023). Introduction to the study of commercial law. Canopus Digital Editorial.
- López Guzmán, F. (2007). Introduction to commercial law. Themis.
- Menéndez Menéndez, A. and Rojo Fernández-Río, A. (2021). Commercial law lessons (vol. 1). Aranzadi / Civitas.
- The Encyclopaedia Britannica. (2023). Business Law. https://www.britannica.com/
