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Difference Between Commercial And Corporate Law

Are you running a business? 

The terms ‘corporate law’ and ‘commercial law’ may arise from time to time whilst operating your business.

Both of these laws determine the structure and consistency of business operations. Whilst the business world uses both of these terms interchangeably, there is a significant difference between them. These terms are closely related, but they govern different aspects of an organisation’s operation. Anyone who works either in the legal industry or in the business world should have basic knowledge of both of these laws so that they can apply them correctly at the right time. 

If you’re wondering, is commercial law the same as corporate law, then this article is for you. We have narrowed down the concept of corporate and commercial law along with the significant difference between them for easy understanding. 

What Is Corporate Law?

Corporate law is about corporations, which are artificial entities formed by statute that the law considers to be legal persons. Corporate law deals with the relationships, rights and conduct of businesses. It includes the management, formation and operation of an organisation and covers issues related to shareholder rights, reorganisation, acquisitions and mergers. Corporate law deals with the workings of the organisation and the structure it employs to operate on a daily basis. 

Corporate law issues are usually related to the maturity, launch and growth of the business. All these things have the potential to cause major changes in a business’s functioning and structure, and these changes are difficult for businesses to adapt to. 

Here are some activities that might cause a corporate legal issue:

  • Corporate restructuring
  • Mergers
  • Acquisitions
  • Litigation 

Corporate law also deals with the procedures related to the structuring of the corporation, such as:

  • Raising Capital
  • Governing exercise of its powers
  • Distributing profits
  • Winding up and liquidating a corporation
  • Making changes to the corporation
  • Distributing profits
  • Determining the relationship between the corporation and those who hold an interest in it

A corporate lawyer or a business lawyer is skilled and specialises in all these aspects of business. Corporate lawyers assist companies (private or public, startups and other legal entities) with their duties, obligations and legal rights. A corporate lawyer is knowledgeable enough to deal with all these aspects skillfully and intelligently. 

What Is Commercial Law?

Commercial law deals with matters related to the commercial activities that a business is engaged in, such as sales and distributions of items or the purchase or sale of goods. Most of these activities are related to transactions. Other business exchange-related issues included in commercial law are financing, employment contracts, litigating disputes, franchising and leasing property. 

Many other aspects of business are also governed by commercial law. These include the formation of commercial companies, acquisitions and closures of companies, mergers, basic labor rules, shareholder rights, environmental laws, legally operating a business, the rent and purchase of commercial premises, employment safety and licensing. It also covers areas, such as contracts, employment law, commercial transactions, and taxes. It represents initiatives, products, warranties, transport contracts, dubious instruments, leases, and many more.  

Commercial law applies contract and property law principles to commercial matters. Commercial law also intersects with other laws, from labour law to franchising and intellectual property. It is a broad domain, unlike corporate law, which focuses only on corporations.

To protect the organisation and ensure that the company does not do anything or be involved in any act that violates the commercial law, a commercial lawyer assists a company with commercial law. All business owners and entrepreneurs should consult a commercial lawyer or commercial law firm early in their contract negotiation procedure to ensure that all their legal rights are protected. They can help you with the following issues:

  • Property law
  • Contract law
  • Labour law
  • International trade law 
  • Consumer law.

Difference Between Corporate And Commercial Law

Corporate law is mostly about the governance and operation of the business, shareholder rights, mergers and acquisitions, and company formation. In comparison, commercial law deals with the issues related to the transactions and commercial trading of products and goods and the legal aspects related to the sale and distribution of assets. 

How Madison Marcus Can Help You

If you are a business owner, then you need the right law firm to help you deal with matters related to corporate law and commercial law. 

At Madison Marcus, our trained and experienced lawyers are well-versed in these areas of the law. We can provide business advisory and advise you in all aspects of corporate or commercial law.

For all enquiries, contact us here


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