Commercial law deals with the rules, regulations and ethics that govern agreements that occur between business parties. It is considered a branch of civil law. Given the complex nature of current businesses this has developed several sub branches of study. Usually covered under these laws are agreement regulations, intellectual property rights, employee protection and consumer protection.
Commercial law covers the regulatory steps that must be taken before a lawsuit is filed and also the steps that must be taken after a lawsuit is filed. In the former case a proficient attorney does takes the advisory role. In the latter case attorneys specialised in commercial litigation in Singapore will defend a wronged party in court.
Regulation of business agreements
Contracts form the basis of any business transaction. This is usually a written agreement between the two or many parties and it is enforceable by law with the aid of a litigation lawyer. A contract is made up of three components, namely an offer, and an acceptance and a consideration. An offer is an expression of readiness stated by one party to provide a product or service. An acceptance is the consent given by another party to receive the previously mentioned product or service. A consideration is the incentive provided for both parties to honour their agreement. For example, consider a situation where person borrows his friend’s vehicle for a day and at the end of the day he fills up the gas tank before retuning. In this case the offer is where the friend agrees to let him ride the vehicle. Consent is when the friend agrees to use the vehicle. Consideration is where the second friend offers to fill up the gas tank in exchange for letting him use the vehicle.
Protection of intellectual property
In this day and age where inventions and innovations are always in demand a great importance is placed protecting the ownership of each new development. This area deals with patents and copyrights.
Employees’ rights vary greatly from country to country. These laws are designed to prevent employers from exploiting employees as well as to prevent employees from neglecting their duties. It deals with areas such as minimum wages and minimum work hours.
Protection of consumers
A great importance is placed on protecting the consumers. They can easily be cheated or mislead due to their lack of knowledge.
Commercial law also defines other guidelines such as how third parties should act and how finances must be managed. It is a vast area and most companies have a dedicated lawyer who acts as an advisory.