The Difference Between Commercial and Corporate Law
Corporate and commercial law are two similar, but separate, areas of the law which are often confused for each other. The two practice areas are closely linked, but typically corporate law focuses on the lifecycle of a company and the various processes it will go through over the course of its life. Whereas commercial law has a wider scope which includes franchising, intellectual property and can also include litigation.
The two different types of law are linked by the simple fact that both deal with issues that arise as a result of contract law.
Buying and selling are at the heart of commercial law. But, the things you sell in relation to this can be as widespread as goods such as electronics and expand all the way to intellectual property (ideas, writing, etc.). Typically, commercial law is the pursuit of payment for the goods delivered as well as ensuring that the buyer gets the goods that they specifically paid for.
On the whole, commercial law will deal with issues that arise between a company and a third party due to issues with license agreements, reseller issues, or even terms and conditions breaches. The importance of commercial law comes from the fact that it seeks resolutions when an issue presents itself for a business.
On the other hand, corporate law is much more involved in the maintenance of corporations and their overall structures. As well as forming them in the first place. This looks at the shares of a company, tax consequences and even shareholder agreements, acquisitions, mergers. The importance of corporate law is that it attempts to protect and advance the welfare of a corporation’s shareholders, employees, suppliers, customers and more. Whereas, commercial law only seeks to do so once a breach has already been made.
Simply, corporate solicitors look to maximise the financial returns for the company shareholders in the long term by maximising the market share price as much as possible.
Crucial to Business
As you can see, over time there are many situations where having someone proficient in business law would be vital to your business; whether that be corporate or commercial law. To ensure the longevity of your business over time, to deal with sudden issues and simply to ensure the long-term benefits for all of your key stakeholders are upheld. It also helps to ensure that business partners, stakeholders and other business entities are all held accountable and hold up their overall business obligations.
As a business, you may also find that issues may arise within your business at times to create disgruntled or unhappy employees. In which case, mitigating the risk and avoiding legal action when it comes to such employees is vital practise in the long term. If not, you could be opening your business up to unnecessary and potentially incredibly harmful legal action in the long term. Having the right legal advice from a commercial law Manchester provider from day one can make all of the difference.
Both corporate and commercial law become relevant for a company at different points over its creation. When a business faces risk it needs to use commercial law in order to resolve and avoid further issues, while corporate law should be used periodically in order to ensure the continued and long-term success of a business.