Commercial law regulates the constitution of franchises.
Commercial law is the branch of law dedicated to regulating relationships between people, contracts and commercial actions.
Also known as commercial law , it is part of private law and includes all the regulations linked to merchants in reference to the development of their work. At a general level, it could be said that it is the area of law that regulates the exercise of commercial activities .
Characteristics of commercial law
Commercial law regulates multiple aspects of commercial acts . It contemplates the legal status of merchants, corporate law, competition law, securities, obligations, contracts, intellectual property law, bankruptcy law and banking law, among other issues.
This implies that commercial law takes into account very varied aspects, ranging from commercial contracts to credit titles, passing through commercial companies, the obligations of merchants, invoices, mergers and acquisitions, trademarks, patents. and unfair competition.
The operation of a family business must respect commercial law.
Your sources
It is important to make clear what the sources of commercial law are. We can establish that they are the law , jurisprudence (the interpretation that the judge and the rest of the jurisdictional order make of the law) and custom . This last aspect emanates directly from the practices that merchants usually carry out.
In the case of Spain , for example, it must be emphasized that the main document in this matter is the Commercial Code that was established in 1885 . It consists of four books that deal with the following subjects: merchants and commerce in general; commercial contracts; maritime trade; and suspension of payments, bankruptcies and prescriptions.
However, it must also be stated that in said country this type of right is based on two fundamental rules or principles. One of them is the power of the State to plan economic activity, while the second essential precept is that it recognizes not only the right to freedom of enterprise but also to private property .
Debt restructuring, insolvency and bankruptcy fall under the scope of commercial law.
Criteria and principles of commercial law
It is possible to distinguish between two criteria within commercial law. The objective criterion is that which refers to the commercial acts themselves. On the other hand, the subjective criterion is linked to the individual who works as a merchant.
Commercial law is not static, but adapts to the changing needs of the market , companies and the community in general. In any case, five basic principles are always respected: it is an individualistic right (since it focuses on links between individuals), professional (protects the interests of businessmen), progressive (changes over time), internationalized (it is integrated into global trade) and customary (it is based on customs).
The functions
Commercial law, in short, is responsible for structuring the current commercial organization and setting the conditions of the legal regulations linked to businessmen , this is the name given to all subjects who carry out activities linked to commerce.
Commercial acts , for their part, are those that are carried out with the intention of generating and obtaining a profit or utility.
Importance of commercial law
In addition to all of the above, it is important to recognize the indispensability of commercial law in our society since it plays a fundamental role not only in economic development but also in political and, of course, social development. It achieves this by intervening directly in the production of goods and services, which are responsible for satisfying the needs of human beings.
By regulating exchanges between private parties, it protects producers, merchants, consumers and users by virtue of what is established by the rules. That is why it guarantees that commercial activities are carried out accordingly and provides the necessary framework for the State to intervene in those situations where its participation is necessary.
Some examples
Commercial law is present in numerous activities of daily life, always linked in some way to commercial acts.
Suppose a man hires an architect to build his house. Both agree to a series of payment commitments through checks and promissory notes, which will materialize as the project progresses. The wording and scope of these documents, as well as the obligations inherent to them, must comply with the provisions of commercial law.
Let's take the case of three friends who decide to join forces to start a business focused on the production and marketing of craft beer . In accordance with commercial law, they register their company, take out mandatory insurance and sign employment contracts with employees who contribute to the project, among many other procedures and procedures.
Of course, the development of a commercial activity is not achieved only by commercial law. If we think about the last example, beer producers must also comply with food science requirements, for example, while the construction of a home has to follow the guidelines of environmental legislation .