Commercial law, often called business law, refers to the principles of business and commerce. It covers matters such as trading and the sale of goods, bank transactions, loan and guarantee matters and other things related to the laws of trade and commerce.

Commercial law is considered part of civil law dealing with both public and private law. Commercial law is covers regulating corporate contracts, the manufacture and sales of consumer goods and hiring practices.

There can be confusing terms found in commercial law, so it is useful to familiarise the terms if you intend to use them for starting your business. The most commonly used terms are:

Capital - referring to the principal money to be used for investing in a business.

Contract - referring to the legal document you sign when agreeing to work with or do business with another company or person. Contracts are signed on joining new companies, when mergers take place and as an understanding between two businesses or entities.

Director - Directors are those people in charge of a company. Large companies usually have a board of directors chosen by its shareholders.

Incorporation – referring to the process used in starting a company.

Insolvency - is sought by a company when the company cannot afford to pay its debts.

Limited liability – refers to the agreement type of company. Within a Limited liability company, members agree to the level of responsibility each is liable for if anything should go wrong with the company, prior to the company formation.

Private - refers to members of the public not having the option to purchase shares in the company. Companies that experience substantial growth usually evolve into public companies and offer the option of share purchasing.

Proxy - refers to the person given authority to speak and act on your behalf, such as your solicitor.

Shareholders - refers to those people who own a share of the company.

DWT legal offers expert and legal advice and can assist is framing a legal contract for your, while keeping commercial law in mind. Contact us today to find out how we can assist you. If you would like to discuss any aspect of commercial law with us, please call 01562 514862, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or contact us using the contacts page of our website.

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