What Is The Difference Between Corporate Law And Commercial Law?

For many, commercial law and corporate law might seem to suggest the same legal field. However, commercial and corporate law are each differing fields of national and international business law. If you’re interested in seeking corporate or commercial litigation services, it is vital to know the differences between both branches of law. Read on to find out what these differences are, why they matter, and how this can affect your legal needs from a commercial law firm or solicitor.



What Is Corporate Law?

Corporate law pertains to the structuring of companies; their formation, management, and organisation on a day-to-day basis. It is a branch of international business law that deals with corporate governance, ensuring a business complies with the various rules and regulations imposed on it. It also covers the rights and obligations of the individuals involved in establishing, financing, and running their businesses.

Corporate law governs the formation, management and operation of a company, as well as the business conduct that should enable it to continue to operate within the most recent set of rules and regulations. Partnerships, public and private companies, and even start-ups should be advised on corporate law and the legal rights, duties, and obligations that it covers.

40% of all global corporate arbitrations use English corporate law as the main body of law. As companies become more globalised, this makes a corporate law firm with international services necessary for the optimum operation of a business.

Corporate Law History

Corporate law was developed in tandem with the rise of modern companies. A version of corporate law existed in the 16th century, as Royal charters were granted to merchant adventurers in Europe, most notably England. Royal charters were direct prerogatives from the King that granted special privileges to the trading company, allowing them to expand and form monopolies.

However, it wasn’t until the Joint Stock Companies Act of 1844 that modern companies formed by registration began to exist. The later Joint Stock Companies Act of 1856 act codified further legislation on companies, and this gave way to the railway boom which resulted in huge successes for many businesses.

Corporate law evolved further after the decision of the House of Lords in Salomon v. Salomon & Co, which defined, in law, the separate legal personality of the company and the fact that the liabilities of the company were separate from those of its owners.

What Is Commercial Law?

Commercial law is different from corporate law - it is the branch of law that regulates and governs commercial transactions such as contracts, insurance, imports, exports, and banking. A commercial law firm might advise on product and initiative proposals, warranties, leases, transport contracts, and so on.

A commercial law firm might also be consulted to protect the company from other competitors and to make sure that the company does not act in a way that violates competition laws. Rather than trying to navigate the law on their own, it is a good idea for entrepreneurs to consult a commercial law firm to ensure all legal rights are protected.

1979’s Sale of Goods Act is the primary foundation for the rules governing commercial litigation. However, depending on the case in question, other laws have to be considered. Because of this, it is vital to have commercial litigation that is aware of all the latest developments of these laws and regulations.

Commercial Law History

In the late Middle Ages, Italy was the centre of what we now know as the basis of commercial law, advanced via the trade of Italian maritime republics. In 1553, jurist Benvenuto Stracca published the treatise De mercatura seu mercatore tractats which was one of the first legal imprints dealing specifically with commercial law.

This treatise focused on merchant contracts, practices, and maritime rights, to which he soon added extensive discussions of bankruptcy, commissions, third-party transfers, and insurance. Stracca is thus considered the forefather of commercial law and the creator of the first Italian treaty on the insurance contract. This legal work influenced other European nations with maritime links, including England.

What Do Corporate Legal Services Involve?

Corporate law services from an international business law firm might be sought if you’re buying into a new business or restructuring an initial investment to accommodate new funding, as well as if you require legal advice on matters such as investment opportunities and shareholder relations. A good corporate solicitor, such as Paddle & Cocks LLP Solicitors, will provide expert advice on the following:

●     All facets of business sales and purchases; warranties, indemnities, disclosure, and transaction documents.

●     Shareholder and partnership agreements that help the business grow in strength, sewing in a culture of stability that avoids future conflicts arising.

●     Security solutions where purchasing is made by way of deferred payment over a period of time. This might be through unsecured personal guarantees, legal charges over property, debentures, or the issue of loan notes.

●     Articles of Association, drafting of minutes and resolutions, whilst also keeping your company’s statutory registers.

It helps if the corporate solicitors are pragmatic and business-minded in order to properly understand how legal service affects a business and the necessary structural requirements to make a commercial venture successful.

Excellent corporate law solutions can also be tailored to suit the requirements of you and your business, with careful calculation of the costs and risks in an effort to make an ultimately informed, beneficial decision.

What Do Commercial Legal Services Involve?

Commercial legal services can help with contractual, company and partnership disputes, financial disputes, shareholder disputes, property litigation, professional negligence, insolvency litigation, warranty claims, injunctive relief, a dispute over assets, and more.

A commercial litigation service can certify that a contract is completed to the highest standard, with an expert legal team bearing in mind changes in legislation and the interests of your commercial project. Without a commercial solicitor, contracts or other business agreements and arrangements can be ambiguous and inconsistent, potentially leading to disputes and legal issues.

A commercial law firm and commercial litigation service such as Paddle & Cocks LLP Solicitors can advise on all essential terms and conditions required for a business. These include

●     Terms and Conditions of Sale or Purchase

●     Terms of Website Use

●     Privacy Notices

●     Data protection

●     Supply of Service Agreements

●     Master/Framework Agreements

●     Intellectual Property Licences including Trademark and Patent Licences

●     Web/App/Software Development Agreements

●     Consultancy Agreements

●     All types of bespoke commercial agreements

Without a contact, a dispute may be left for a court to decide the outcome of, a major risk for businesses, as this might fail to take into consideration what would have otherwise been stated in a written agreement.

What To Look For In A Corporate or Commercial Solicitor

If you need corporate law services or commercial litigation for an international business law matter, it can be hard to know what to look for in a commercial solicitor. There are some characteristics that suggest a suitable commercial law firm for your legal needs:

●     Adaptability. Having a commercial law firm that can make their services tailor-made to your case will ensure that they have a complete understanding of the matter at hand. This malleability in commercial litigation might mean that, for example, a commercial law firm specialising in international business law might also be able to act as, say, an employment solicitor also.

●     Experience. Experience is an essential tool for commercial litigation and corporate law. A commercial law firm that has the knowledge through experience will have a better understanding of the legal process that you’re undertaking.

●     Pragmaticism. Having a quick and pragmatic commercial law firm can help with corporate law, which needs both a clear-headed business mindset and a composed approach to complex matters.

How Can A Solicitor Help Me?

Even if you think that you don’t require corporate law or commercial litigation services, a solicitor can help provide expert advice and knowledge for an array of legal matters. At Paddle & Cocks LLP Solicitors, beyond corporate and commercial law, we are able to deal with international business law, as well as commercial litigation services such as real estate, insolvency & restructuring and employment law.

So, if you’re looking for employment solicitors as well as corporate lawyers or commercial litigation services, Paddle & Cocks can help. We carry out our work across ranging commercial sectors, including hospitality, agriculture, finance, property development, technology, and media amongst others.

At Paddle & Cocks LLP, we have a team of highly knowledgeable and extensively experienced commercial and employment solicitors who can provide advice on a wide range of legal matters. We can adapt our services to suit your case in a bespoke and pragmatically-minded manner, that prioritises the needs of you and your business.

Based in Truro, London and Birmingham, don’t hesitate to get in touch and find out more. Call us at 0203 7456535 or email law@paddleandcocks.co.uk.