14 Apr What is Commercial and Importance of Commercial Law?
The Commercial Law also called ” Business Law ” is the branch of the Private Law that is responsible for regulating trade relations between persons, whether physical or moral, as well as acts, places, and contracts stemming from the trade itself.
Currently, Commercial Law knows no borders: the import and export of products and services are part of the day-to-day. If you are looking to take your products to Spain or Latin America, or to bring products from abroad, you will need professional advice, capable of solving all your doubts and with the necessary experience to carry out the process optimally.
Importance of Commercial Law
The Commercial Law is responsible for ensuring that the economic activity is carried out correctly, setting the framework for intervention by the public authorities, if necessary, as it is in protecting the consumer. Also, Commercial Law monitors the financial system, given the amounts of money that are usually handled in commerce.
In this way, Commercial Law regulates the relationships between legal entities and between companies and clients, as well as between sellers and buyers. In addition, when you find specialized advice in this branch of Law.
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Characteristics of Commercial Law
The Commercial Law has five basic characteristics that define it :
Professional law. The Commercial Law Concerning the specific office of a professional sector: trade and business.
Progressive. This branch of Law is constantly updated, due to the changes in conditions in the commercial exercise in a certain geographical area.
Customary. One of the sources of Commercial Law is tradition, for which the laws will be based on the commercial tradition of the countries.
Internationalized. The Commercial Law beyond national borders, regulating international trade transactions between individuals or multinational corporations.
Individualistic. The Commercial Law is part of the Private Law, so it focuses on trade relations between individuals, always seeking the regulation and benefit both parties, provided they adhere to the legal framework, which has as sources:
Law. This branch of law is also part of positive law. That is why it has written and published regulations in the codes and conditions that are responsible for establishing the Commercial Law. In the event that there are legal gaps, the regulation will be based on Common Law.
Jurisprudence. The different commercial organizations, both national and international, interpret the law to resolve conflicts, thus creating a corpus of historical decisions, which will be the basis for future laws and decisions.
Custom. Commerce is a fairly old practice, which arose before the birth of Commercial Law. That is why this practice is heir to the traditions and commercial customs customary in the community or region.
Some branches of Commercial Law
Contract law. It refers to the type of right that regulates contracts. That is, the obligations and rights acquired voluntarily when signing a document.
Banking law. Regulates the exercise of banks and other similar financial entities.
Exchange law. It is directly linked to the regulations on securities, shares, and investments.
Bankruptcy law. It contains substantive and procedural rules in everything that refers to debts and creditors.
Maritime law. Regulates the exchange of goods and services between countries and/or regions, as long as maritime actions are involved.
Corporate law. It is also known as “company law ” or ” corporate law “, and deals with business subjects, as well as existing forms of association.