Corporate and commercial law often get confused, despite the fact that there are some pretty significant differences. You may need to know the difference between corporate and commercial law if you require a lawyer for your business, as you’re learning about laws and regulations that define what you can do, or as your business grows. So, what are some things you need to know about commercial vs corporate law?
What Is Commercial Law?
Commercial law deals with legal problems that can occur when you run a business that involves commercial transactions. More often than not this involves contract and tort law. Most of the clients of commercial law firms are large businesses, banks, insurance companies, and sometimes even governments. You will often find that there is a strong connection between commercial law and the economy, as commercial law affects how businesses run. Ultimately, commercial law sets the rules and precedents that govern the conduct, relations, and conduct of businesses involved in any type of trade, merchandising, or commerce.
What Is Corporate Law?
Corporate law on the other hand involves general corporate matters. This means things like the incorporation of companies, articles of association, public listing and delisting, and directors’ and shareholders’ rights. Generally, there is some kind of cross-border element when it comes to corporate law, meaning that clients of corporate law firms are multinational corporations, investment banks and other privately-held companies that may also need commercial law services. However, while the two types of law may border one another, the specifics of what is addressed in each is very different.
Are There Grey Areas?
There are a few grey areas where corporate and commercial law cross on the business side of things. While commercial law is the broader practice, sometimes there can be some overlap. Seeing as both types of law work with companies, there are times where a corporate or commercial lawyer will find themselves doing something that would be perceived as the other’s job. This would generally be something to do with business transactions.
What Are The Main Differences?
The main difference between corporate and commercial law comes down to the specifics of what is being governed. Corporate law deals with mergers and acquisitions, restructuring companies, and listing companies on recognized stock exchanges. Commercial law deals with disputes and claims that come in the form of contract or tort law claims. Basically, corporate deals with the overarching structure of businesses, while commercial tends to focus on the financial and human relations side of a company.
Whether you are working on creating a new business, running a corporation, or anything in between, you’ll likely find yourself in need of some legal advice. If you’re not sure whether your concerns lie with corporate law or commercial law, consider working with a legal consultant who specializes in both areas.
