Business and commercial law are one and the same thing.
Business law or commercial law is the body of the law that applies to relations,
rights, and the conduct of businesses and persons who are engaged in trade,
sales, commerce and merchandising. All states have commercial law as it is
considered very important in maintaining order, security and peace in the
economy. Business law is important for the monitoring of changing needs in the
economy and following moral values. Business law gives control to regulate
commercial transactions and assist in saving the society’s and business interest.
Commercial law creates a reliable standard for all businesses
to follow. Most of these business fall under contract law, concerning on
creating standards and uniformity to be upheld by businesses.
Purpose of
commercial law
Commercial law creates predictable and consistent standards.
The laws may differ between different sates, however they all reduce
uncertainty and risk among parties that have entered into formal agreements.
Predictable commercial laws allows business persons to enter
into multiple trades with assurance that all trades have a certain level of
protection. For instance, a leasing business signs multiple leases in a day.
They are allowed to do this because of the predictable ways through which a
state governs lease transactions.
Business law allows for uniformity which saves time in
commercial law. Therefore business owners need to know that courts and state
agencies apply the law uniformly.
Another importance of business law is Uniform Commercial Code,
which is a comprehensive set of laws that govern business transactions between
USA and other territories. However not all sates are using this principle but
they have adopted a version of it.
SUMMARY
Commercial law governs a wide area of commerce, business and
consumer transaction. Specific law has also developed in numerous business
fields. They include: banking, contracts, bankruptcy, landlord tenant, sales,
negotiable instruments etc.
