Commercial Law or Business Law governs the transactions between business entities with the exception of maritime transportation of goods which is regulated by Maritime Law. It deals with all kinds of businesses and ensures secure transactions in trade. It is a collection of laws that applies to the business relations, rights and conduct of people involved in businesses. It also governs the sales of goods and services, leases and contracts of carriage.
Two parties forming a business contract cannot rely merely on their goodwill; there is a need for a system of rules that govern the business contracts to ensure safe transactions among the involved parties. If one of the parties does not follow the signed terms of agreement, the commercial law safeguards the rights of the other party to avoid injustice. Contracts are based on offers and for an offer to be valid, certain rules and regulations must be put forth. Similarly, the accepting business organization should agree with these terms to form a valid contract. Commercial law deals with such contracts to make sure that all parties agree with and accept the terms and conditions before making a transaction. If the parties are at conflict, the commercial law holds the power to grant justice to the deserving party.
The Uniform Commercial Code was formed to eliminate conflicts in interstate business contracts. Each state in the United States of America has its own sets of laws regarding business hence there are chances that the state enacts conflicting rules. UCC is a standardized set of statutes regarding commercial law; each state is free to acquire this set of laws if required.
Commercial law also deals with third party issues. Such issues arise mostly when the general public is affected indirectly by a contract between two business bodies. A common example of such issues is the change in prices of goods. Commercial law ensures that the third parties’ rights are not violated.
It is ideal to contact a commercial law attorney to handle business issues as they have expertise in this field and are well informed about the laws regarding business. Situation can go out of hand, mostly for the third parties, and justice becomes impossible to attain. These cases are sometimes quite complicated and one might not be able to benefit from the rights bestowed by the government. Hence, the involved parties, including the third parties, must contact a commercial law attorney if such a case arises. Commercial awareness is as important as the commercial law itself. Every member of a business organization should be aware of the existence and the benefits of commercial law.