Getting into sticky situations is part and parcel of running a business, and while for your personal matters you may refer to a friend or someone else you trust, as a business, situations need to be dealt with utmost care and reliable representation. This is where Lawyers come in, but then you need to know exactly what kind of Lawyer would be able to best represent your situation.
The laws that are applied to a business are different from the laws applied to an individual, these laws fall under the titles of ‘Corporate’ or ‘Commercial’ law. There are differences between Corporate law and Commercial law but the two are very closely related, understanding these differences can be the key to your business getting the right representation.
The Difference Between Corporate Law and Business Corporate law
Sentences tend to get filled with jargon in the legal world, thus for easier understanding, it is best to understand that the terms ‘Business Corporate Law’ and ‘Corporate Law’, can be used interchangeably in legal discourse. Essentially, the term ‘Business Corporate Law’ just adds further clarity to make the subject easier to understand in comparison to Corporate law, which can lead to ambiguity at certain times.
What is Corporate Law?
Corporate law is the study or practice of how directors, creditors, shareholders, employees, and other stakeholders such as the community, consumers, and the environment interact with each other. Contrary to popular belief, these laws are actually in place to allow businesses to make their processes smoother.
Common Corporate law matters pertaining to mergers and acquisitions of businesses, corporate-level crimes, and corporate insolvency. These are matters that are away from the daily routine of a corporation and rather deal with the bigger picture of the corporation’s actions and decisions.
What is Commercial Law?
Commercial law is the body of law that applies to the rights which are related to work contracts or the transfer of property, it includes Consumer law, Contract law, International Trade law, Labor law, and property law.
An increasingly rising application of commercial law is in the violation of contracts, which is the most common among all the different types of legal issues that have to be dealt with under Commercial law. Additionally, there are several other applications of the laws such as advertising disputes, marketing term violations, unfair trade practices and more. These laws apply to more of the day-to-day aspects of running a corporation, dealing with immediate problems.
What is the fundamental difference between Corporate Law and Commercial Law?
Make no mistake, your business will have to cater to all the laws that any business has to abide by, but in the case of a one-off situation or due to the nature of your business, you may need more support for one branch of law as opposed to the other. The simplest way to explain the difference between Corporate and Commercial law is that Corporate law is designated to the governance and regulation of businesses, while Commercial-law applies to situations in transactions and commercial trading.
Which Lawyers/Law firm do you approach?
Disputes involving Business law can get quite complicated, and it’s often wise to consult or hire a good business law attorney for advice on the legal issue you face. Your attorney can not only help you research your case and strengthen your legal position, but also file a lawsuit on your behalf and represent you in court.
Thus, getting the right legal support is critical and there are usually multiple options for representation available. Approaching smaller legal firms, that specialize in either Corporate law or Commercial law, can prove to be fruitful for your business, however, small firms may not be able to provide the expertise for both Corporate and Commercial Law. Larger firms usually possess expertise in both, which makes it much more convenient and tactful for a business to get its corporate law needs to be met by such firms.
While not having the knowledge of the crucial differences between legal terminology won’t be the end of the world, it can be the difference between your business getting the right representation a day earlier or a day late. Furthermore, approaching a law firm – such as Sardar & Co – can help you make a sounder decision, as the personalized guidance can ensure you end up going to the right person for your business needs.