What is commercial law?

Commercial law, also known as business law, is a broad area of law that governs business and commercial transactions. 

It is a body of law that applies to the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales. Commercial law ensures that business activities are conducted legally, ethically, and fairly, providing a framework that facilitates business operations and protects the interests of all parties involved.

 In this post, we’ll take a look in more detail at what is commercial law. And if you are keen on exploring this area as a career, you should consider the Double Degree in International Relations and Law at Universidad Europea in Valencia. 

What does commercial law cover?

Commercial law covers a wide array of topics and activities. Here are some key areas:

• Contract Law: This area deals with the creation and enforcement of agreements between parties. It includes everything from employment contracts to sales agreements and service contracts.
• Corporate Law: This governs the formation, management, and dissolution of corporations. It includes regulations related to mergers and acquisitions, corporate governance, and shareholder rights.
• Consumer Protection: Laws that ensure products and services provided to consumers are safe and meet certain standards. It also includes laws that protect consumers from unfair practices and fraud.
• Intellectual Property: This area covers laws related to the protection of creations of the mind, such as inventions, literary and artistic works, designs, and symbols.
• Antitrust Law: These laws prevent unfair competition and monopolies, ensuring a competitive market environment.
• Employment Law: This governs the relationship between employers and employees, including employment contracts, workplace safety, and labor disputes.
• Bankruptcy Law: This involves the process through which individuals or businesses that are unable to repay their debts can seek relief.

Examples of commercial law in action

1. A large corporation merging with a smaller company: Corporate law governs this process, ensuring all legalities are followed, and stakeholders' interests are protected.
2. A startup seeking patent protection for a new technology: Intellectual property law helps the startup secure exclusive rights to its innovation.
3. A customer returning a defective product: Consumer protection laws ensure that the customer can seek redress for their purchase.

Other types of law

While commercial law is vast, it is just one part of the legal system. Here are a few other major types of law:

• Criminal Law: Deals with offenses against the state or public. It includes laws related to crimes such as theft, assault, and murder.
• Civil Law: Governs disputes between individuals or organizations. This can include matters like divorce, custody disputes, and property disagreements.
• Environmental Law: Focuses on the protection of the environment. It covers regulations related to pollution, natural resource management, and conservation.
• Family Law: Covers legal issues related to family relationships, such as marriage, divorce, and child custody.

What does a commercial lawyer do?

Commercial lawyers provide legal services that revolve around business and commercial transactions. Their responsibilities include:

• Advising Businesses: They offer legal advice on various business matters, from contract negotiations to mergers and acquisitions.
• Drafting and Reviewing Contracts: Ensuring that all agreements are legally sound and beneficial to their clients.
• Compliance: Helping businesses comply with relevant laws and regulations to avoid legal disputes.
• Dispute Resolution: Representing clients in court or during arbitration if a business dispute arises.
• Risk Management: Identifying potential legal risks and advising on how to mitigate them.

Skills needed to be a commercial lawyer

To be successful, a commercial lawyer needs a diverse set of skills, including:

• Analytical Skills: Ability to understand complex legal issues and provide sound advice.
• Negotiation Skills: Effectively negotiating terms and conditions in contracts and agreements.
• Communication Skills: Clearly explaining legal concepts to clients and other stakeholders.
• Attention to Detail: Ensuring accuracy in contracts and legal documents.
• Problem-Solving Skills: Developing practical solutions to legal and business challenges.

What to study to become a commercial lawyer

To become a commercial lawyer, a combination of a good degree from a leading university such as Universidad Europea, along with experience is key. If you choose the degree mentioned at the start of this post, you will learn from an experienced faculty of leading lawyers who are still active in the sector today.

In addition, with a focus on experiential learning, our programme includes many options to complete work experience and internships at leading law firms, gaining the skills necessary to succeed once you graduate.

In summary, commercial law is an essential and dynamic field that plays a critical role in the functioning of businesses and the economy. Whether you are a business owner, a student considering a legal career, or simply interested in how the law intersects with commerce, understanding commercial law is invaluable.