In a law firm corporate and commercial are titles given to two related but usually separate groups.
The practice areas within corporate are closely linked and their work relates to the lifecycle of companies as well as mergers & acquisitions. Commercial includes a broader range of practice areas such as franchising, intellectual property and sometimes litigation. The common theme between these practice areas relates to issues arising from contract law.
Commercial law is the law of buying and selling, both tangible things like goods and intangible things like intellectual property rights. In most cases, it’s ensuring that the seller gets paid for the goods once they’re delivered and that the seller gets the goods they paid for. Commercial law usually refers to law relating to interactions between the company and another third party, such as terms and conditions, license agreements, reseller agreements etc.
Corporate law is the creation and maintenance of corporations and corporate structures, including the buying and selling of shares and the assets of corporations, as well as looking at the tax consequences of transactions. Corporate law refers to law related to matters relating to the “corporate entity” itself, such as incorporation, types of shares, shareholder agreements, but also acquisitions or mergers.
Why is corporate law so important?
The reason why it is important is due to its goal. The appropriate goal of corporate law is to advance the aggregate welfare of all who are affected by a firm’s activities, including the firm’s shareholders, employees, suppliers, and customers, as well as third parties such as local communities and beneficiaries of the natural environment. This is what economists would characterize as the pursuit of overall social efficiency. Specifically, is simply to assure that the corporation serves the best interests of its shareholders or, more specifically, to maximize financial returns to shareholders or, more specifically still, to maximize the current market price of corporate shares. Our insolvency practitioners in London are prepared to this kind of cases.
Why is commercial law so important?
Commerce is at the core of a democratic society and, in order to be strong economically, it must be attractive to businesses.
One way of doing this is to have a strong set of laws and regulations protecting businesses that enter into agreements with others and providing resolutions when things don’t go to plan. Commercial law provides that platform.
Most commercial disputes are heard in Commercial Court or in county business courts when the dispute relates to that particular jurisdiction.