Commercial Law: Concepts, Company, and Business Practices
Commercial Law: Core Concepts
Commercial Law can be defined as the part of private law that covers all legislation relating to the employer and the actions arising from the exercise of their business. The fundamental issues of this concept are:
- Part of Private Law: This is a branch of Private Law, which is one of two basic categories into which the law is divided. Private law is concerned with regulating relations between individuals, and in particular, Commercial Law regulates the relations of businesses with each other, or between them and their customers. However, today it cannot be said that it is only in private law, as the growing state interventionism makes many rules of administrative and fiscal modules trade rules.
- The Right of Employers: The employer is the subject of the relations that constitute the essence of this law. This does not preclude, exceptionally, that Commercial Law rules can be applied to cases not involving an employer, such as in the case of a draft.
Understanding the Concept of a Company
A company is a unit of production characterized by the heterogeneous organization of certain items such as capital, goods, and work in order to distribute goods or services on the market. If the cost of the goods or services is less than the cost of producing and selling, benefits will be obtained. If the cost of selling is more than the cost of production, there will be losses.
A company is understood as a subject when it comes to the entrepreneur (subjective) and as an object as the result of the activity of the employer (objective), and is susceptible to legal business.
The company is understood as an object to be the result of the activity of the organization and varies depending on the outcome. The company is being transferred or the transfer or creation of objects and rights. The company and work organization have a relationship with the people who will work with the employer to achieve the objectives.
Commercial Uses in Business
Commercial uses are objective standards of law enforcement created by the repeated, consistent, and constant business practices of merchants. Trade Law was born and developed essentially as customary law, and although it lost this character with encoding, the codes were friendly to commercial use, to the extent that our Commercial Code assigned in Article 2 precedence over civil law.
General Terms and Conditions vs. Unfair Terms
The law distinguishes between unfair terms and general terms and conditions. A clause is a general condition when it is biased and incorporated into several contracts exclusively by one party, and it may not be abusive. An unfair term is one that, contrary to the requirement of good faith, causes, to the detriment of the consumer, a significant and unjustified imbalance of contractual obligations and may or may not have the character of a general condition.
With regard to general terms and conditions, the Supreme Court has reached the following conclusions:
- They may only be part of the contract by the will of the parties, but these are limited to paying membership.
- Through them, you can change the law device, but not to circumvent the requirement.
- They are subject to general rules on interpretation, in conjunction with the other clauses of the contract. Article 1288 of the Civil Code states that the interpretation of obscure provisions of a contract shall not favor the party who had caused the obscurity.
Concept of Entrepreneurship
Article 1 of the Commercial Code states that an employer may be an individual (natural person) or a social trading company (legal person).
The employer owns the business and can be defined as a natural or legal person who, in their own name, is professionally dedicated to the production or distribution of goods or services for the market, receiving the benefits or bearing the losses from this activity.
Professional activities, arts, and crafts at first remained outside the control of commercial law. However, they actually take the form of a Public Limited Company (SA), Limited Liability Company (SL), or Sole Proprietorship, performing an activity regulated by Commercial Law.
Many of the activities within the scope of these professionals, such as advertising and signing contracts with clients, are governed by Commercial Law.