Commercial law is a set of rules that regulate acts of commerce. Activity between companies and consumers is regulated.
If commercial law is responsible for regulating the activity generated by legal operators known as commercial acts, what are these commercial acts?
Trade acts are those actions related to an acquisition of an object that has as differentiating characteristics:
- Purpose of making money.
- These goods are not acquired for their own use but for later exchange.
- These acts are carried out by a company.
- The acts are massive, since the purpose is not the own consumption but the exchange.
Origin of commercial law
How did commercial law arise? This regulation was born to face the growing economy of the 19th century. Business activity is regulated with a set of regulations known as the commercial code.
This specific regulation is aimed at ensuring that the market economy functions correctly and efficiently and that there are no company fraud or consumer abuse.
The business activity needed its own code and regulation since it is not the same purpose or the same structures as commercial contracts as civil ones.
Commercial law organizes both the foreign activity of companies with other legal operators and their internal activity (annual accounts, accounting, etc.).
There is a specific jurisdiction to resolve the conflicts that may arise regarding these commercial contracts. This jurisdiction is the commercial one with its own judges and courts (as well as the civil or labor jurisdiction).
Characteristics of commercial law
Some of the main characteristics of this right are:
- It belongs to private law: That is, it involves the personal sphere of both companies and consumers, it is not a matter of public order.
- It is a professional right: Its regulation affects professional legal operators and individuals in the consumer category.
- It has a customary source: Custom has been used to create this right.
- It is a changing right: How it regulates commercial activities is a progressive and changing right, adapting to the dynamic commercial activity of this sector.
If there is no specific regulation for any act of commerce, you must go to civil law that will act as a supplementary commercial law.
Branches of commercial law
This right covers various fields such as:
- Banking law: It studies the clauses of contracts between financial institutions and consumers predominantly.
- Insolvency matters: This part of the regulation is indicated for when companies are in bankruptcy. That is, when they cannot cope with their debts.
- Exchange law: This regulation is in charge of checks and promissory notes.
- Industrial property: This regulation is in charge of protecting industrial technological innovation.
- Corporate law: This part is responsible for imposing the rules on the forms of society that a company can carry out, as well as its benefits, partners, organization, etc.
- Competition law: These rules are responsible for regulating that there is healthy competition between companies, being able to obtain all the same opportunities with the same characteristics.
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