The commercial law It is the branch of private law that is responsible for regulating the activities between merchants, as well as each of the commercial acts that arise from the dynamics of the exchange of goods and services. It is also known as commercial law or trade law.
When we think about all the commercial activities that take place every day in Mexico and in the world, we can imagine countless transactions between companies that require specific rules to function properly. This is where the commercial law to facilitate relations between companies, merchants and anyone who carries out an act of commerce.
In this space you will learn basic and very important aspects of this branch of law, including particular issues of mexican commercial law and recommended readings to deepen the subject. Continue reading!
What is commercial law?
Commercial law is the branch of private law in charge of regulating people, relationships and acts that have to do with the exchange of goods and services, that is, all those dynamics of commercial exchange. On the quest to understand what is commercial lawit is also possible to find it as commercial law or trade law.
To which branch of law does commercial law belong?
As such, commercial law is a branch of private law, which governs all relations between individuals and the State. Within those, it is possible to distinguish those that occur between merchants, that is where the protagonist of this content comes in.
Branches of commercial law
Since there are so many commercial dynamics that regulate the commercial lawEast divides into eight branches in order to better govern each of the commercial acts. These are the most common:
- banking law
- exchange law
- Corporate law
- competition law
- Industrial property law
- bankruptcy law
- contract law
- Maritime and air law
Give me a chance to explain each one in a couple of lines below.
banking law
Banking law is dedicated to the regulation and review of banking and financial entities, regulating commercial acts such as the signing of contracts, deposits, credits and more.
exchange law
The branch of law that governs everything related to securities, as well as checks and promissory notes, is called foreign exchange law.
Corporate law
Within the scope of study and regulation of corporate law are all the rules relating to companies and forms of association, as well as their benefits and partners.
competition law
When we talk about competition law we refer to the set of regulations created to guarantee a fair market for consumers, producers and companies.
Industrial property law
The one in charge of protecting industrial technological innovation, as well as all creations and inventions, is the right of industrial property.
bankruptcy law
All the regulations referring to insolvency proceedings and debts arising from a commercial relationship of purchase or sale are studied and analyzed by bankruptcy law.
contract law
When we speak of contract law, we refer to the branch of law in charge of regulating contracts and the rights and obligations arising from them.
Maritime and air law
Finally, maritime and air law is responsible for regulating all exchanges of goods and services given through commercial maritime and air routes.
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Examples of commercial law
To give you a better idea of ​​what what is commercial lawhere I share some commercial law examples with which you may be familiar.
- A sales contract between two importing companies.
- The merger between two commercial companies dedicated to the production of coffee.
- The clauses referring to the payment of a commercial loan in a contract.
- The acquisition of a ship to transport goods from China to Mexico.
- Sanctions applied to a company with monopolistic practices.
- The protection of a patent through industrial property law.
- Participation in a commercial bankruptcy for the rescue of a steel foundry.
What is the importance of commercial law in society?
The importance of commercial law in society lies in its very origin. By supervising, reviewing and regulating each one of the commercial transactions, it guarantees a fair and clean environment for the economic exercise, thus protecting a fundamental pillar in the economy of a country and the world.
That’s why commercial law is important for society, since it grants the fair margin for the performance of exchanges of goods and services.
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Why is commercial law important for a business?
Commercial law finds its importance in an enterprise as it is one of the best tools to ensure the fair practice of buying and selling products and services.. Through an expert in commercial law it is possible to protect and watch over the particular interests of an enterprise.
What is the main objective of commercial law?
The main objective of commercial law is the dynamics of exchange of goods and servicesor better called, commercial actsas well as each and every one of the legal implications arising from them.
What is a commercial act?
It is called as commercial act or act of commerce to all those legal acts derived from the exchange of goods and services regulated by commercial lawsome of them are:
- The sale and lease of real estate.
- The sale of securities of commercial companies.
- The acts inherent to supply and supply companies.
- Commercial mediation operations.
- Bank operations
- Insurance contracts.
- Checks, bills of exchange and remittances.
- Contracts between merchants.
- Contracts related to maritime or air trade.
- Titles of credit to order or bearer.
And many more! Depending on the regulation you rely on, you can find unique particularities between countries. The commercial law In Mexico, it finds its support in the Commercial Code and the Federal Civil Code, in the company of the General Law of Commercial Companies, the Foreign Trade Law, the Commercial Bankruptcy Law, the Law of Credit Institutions, among others.
Characteristics of commercial law
Some of the characteristics of commercial law that shape and circumscribe this branch of law are the following:
- It is an individual right.
- It is customary in nature.
- It is usually progressive.
- It is global or internationalized.
- It is a professional right.
- It’s computer.
Let me explain each of these points so that you have no doubts.
1. It is an individualistic right
That is, it focuses on those transactions between individuals, leaving aside those relationships in which law enforcement agencies participate.
2. It is customary in nature
When we speak of its customary nature, we refer to the fact that customs and commercial traditions between countries and merchants have been used to create regulations.
3. It is usually progressive
This characteristic indicates that it is not a permanently established statute, but that it must evolve, update and adapt to the current social and economic conditions that it must regulate.
4. It is global or internationalized
Increasingly including relationships between countries and regions of the world, it must establish and maintain a fair environment for international business transactions and transnational corporations.
5. It is a professional right
This feature indicates that the commercial law focuses on a special segment of the professional sector: the commercial and business sector.
6. It’s computer
It is directly involved in the organizations and in all those commercial transactions in which they are involved.
Sources of commercial law
In the commercial law Mexican three can be distinguished formal sources and two material sources. Let’s see what each of them refers to.
Formal sources of commercial law
- The law
- treaties approved by congress
- jurisprudence
Material sources of commercial law
- Customs and habits
- legal doctrine
The difference between the two is that the formal sources have their origin in the applicable legislation, while the material sources are born from the uses and customs of the society to be regulated. I explain each of them below.
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1. The law
It is such as the legal norm established by the federal legislative power in matters of commerce and to which all persons, whether natural or moral, must abide to carry out any act of commerce.
2. Treaties approved by Congress
They are all those written agreements between nations that, with the support of international law, govern the commercial legal ecosystem.
3. Case law
This is built through the agreements and resolutions issued by the plenary session of the Supreme Court of Justice of the Nation.
4. Uses and customs
It consists of the acts and uses repeated constantly and continuously by companies that can be considered as general practices in the commercial environment.
5. Legal doctrine
It is the set of rights, theories and research carried out by experts that explain the content of the law.
Elements of commercial law
According to the teacher Mantilla Molina, referenced in that of Susana Dávalos, we can speak of three elements that determine commerciality of legal acts. These are:
- Subject
- End or reason
- Object
Let me explain each of them in a few lines.
1. Subject
In a commercial act, it is the merchant who is involved in a transaction, such as a purchase, a sale, a loan or the signing of a contract.
2. Purpose or reason
It is the purpose with which commercial acts are carried out, especially those for profit to which commercial laws can be applied.
3. Object
It is the commercial good or service that the act of commerce is about, such as a title of credit, a ship, etc.
Suggested Books on Business Law
If you want to know more about mexican commercial law and delve into this interesting topic, I recommend you dive into these three highly recommended books. You can find them digitally!
Elements of Mexican commercial law by Rafael de Pina
Edited by Porrúa, in this work you can find the basic concepts of commercial law in Mexicoas well as different topics related to companies, acts of commerce,…
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