Types of Commercial Law
Commercial Law is law relating to business, and often referred to as Business Law. There are many areas of Commercial Law and other areas of law that also affect business. Below is a summary of some of these.
ARBITRATION LAW
This is a way of settling legal disputes without entering the courtroom, something that can be helpful to many businesses. It involves someone, or a committee, acting as an arbitrator and independently looking at a case before making a decision as to a way forward. Usually in these cases the two parties will agree (and sign a legally binding contract) to go by whichever decision the arbitrator makes.
CONTRACT LAW
Throughout business, there are obviously many contracts of all types. There are contracts between employers and employee, stating details such as employees pay, holiday, working hours and what the job entails. There are also contracts between businesses and their clients stating what the business will deliver and how much they will be paid, and then there are contracts between businesses and other institutions, such as banks. Contract Law states the way in which contracts must be formatted and what should be included. Whether or not a contract is legally binding is sometimes argued. Contracts might be unreasonable or the contents illegal. There can also be disputes as to whether the terms of a contract have been broken, something that is illegal.
BANKING LAW
This includes and dealings involving banks and their relationships with a business. There are many regulations around banking so it is important for financial institutions to make sure they are following the law. There are regulations stating what banks are obliged to do, and what they must not do. There can be disputes between banks and businesses that go to court such as non-paid loans or banks acting unreasonably.
DISPUTE RESOLUTION
Unsurprisingly there are often disputes between businesses, or between and business and an individual. If clients are unhappy with the service they have received they may contest it. This means it is important that businesses fulfil their obligations; if they don’t they could be legally challenged.
EMPLOYMENT LAW
There are many laws around this area, which both employers and employees must fulfil. Employees must be paid at least minimum wage and are entitled to at least 4 weeks paid holiday (pro rata) per year. Employees must show up for work and do the job they are being paid for. There may be many other terms in a contract.
TAX LAW
All individuals and businesses who earn over a certain amount must pay tax. Employees who earn over the tax threshold must pay income tax. This is automatically taken from their pay as a percentage of their earning, which varies depending on what they are paid. Those who are self employed are responsible for working out their own tax, and will be held accountable should they fail to do so. Corporations must pay corporate tax on a percentage of their profits, although they can deduct money from their profits used for business expenses. This can be complex, and the law deals with those who break the law.
Andrew Marshall (c)