We explain what commercial law is. Importance, characteristics, sources and branches of commercial law. Application examples.
What is commercial law?
Commercial laws or commercial laws is a particular branch of private law , which aims to regulate and accompany the dynamics of exchange of goods and services , that is, the commercial acts contemplated in the laws , as well as the legal implications that arise from they.
In other words, commercial laws ensures the proper development of economic activity and establishes the framework for intervention by public authorities if necessary, as in the case of consumer protection . The financial system, in particular, is heavily guarded, given the huge sums of money it mobilizes.
Thus, this branch of law has to do with the relationships between different companies , between them and their clientele , between sellers and buyers, and even with the mechanisms to start a business or open a business .
In variants of laws such as Anglo-Saxon, however, this right does not have a united approach, but consists of different legal plots that do not have a close relationship with each other, as is the case with commercial laws.
Characteristics of commercial law
Commercial laws is considered as follows:
- It is a professional right , that is, it concerns the specific trade of a professional sector (commercial and business).
- It is individualistic , since it does not usually consider the transactions in which the public authorities intervene, but instead focuses on private law.
- It is customary , since it is based on the commercial tradition of the countries.
- It is progressive , as it is updated as the conditions of the fiscal year change.
- It is global or internationalized , since it exceeds national borders and also regulates international commercial transactions between individuals or transnational corporations.
Sources of commercial law
Commercial law is developed primarily from three sources:
- Law . Since commercial laws is also a form of positive law , it has a written and published regulation of the codes and conditions that constitute commercial law. If there are gaps in it, common law will govern instead.
- Custom . Since trade is well before the emergence of this branch of laws, she is heir to the traditions and commercial uses specific to her community or region.
- Jurisprudence . The different national and international commercial organizations interpret the law to settle disputes, and thus create a corpus of historical decisions that serves as the basis for future laws and decisions.
Branches of commercial law
Commercial law is subdivided into the following specialized branches:
- Banking law . The one that regulates the exercise of banks and other similar financial entities.
- Bankruptcy law . It contains the substantive and procedural rules in everything related to debts and creditors.
- Contract law . The one that has to do with contracts, obligations and rights acquired voluntarily when signing a document.
- Corporate law . Also called company law or corporate law, it deals with business subjects and their forms of association.
- Industrial property rights . The one that defends the productive exercise, the industrial creativity and the way in which they operate, the industrial activities are founded and grow.
- Exchange law . Linked to the regulation of securities, stocks and investments.
- Maritime law . The one that regulates the exchange of goods and services between countries and / or regions, through the merchant marine.
Importance of commercial law
Commercial law is a key branch of the legal exercise to pursue justice and economic equity , and to fight corruption and economic crime, by setting clear and normative rules for any commercial act.
Sales, purchases, rentals, business foundations, every financial and economic pact for the exchange of goods constitutes the basis of the flow of wealth in nations, even more so in times of economic globalization .
Examples of commercial law
A simple example of the application of commercial law is international trade agreements and regulations , which regulate and protect the flow of raw materials, manufactured goods and other goods and services between one geographical region and another. These international financial and free trade agreements are part of international commercial law.
Another possible example is the promissory notes and payment commitments , which are legal documents signed by the parties involved in which a payment commitment is acquired before the law and justice, such as payment for the provision of services or goods received.