Business Law is a very broad concept that covers all areas of law that deal with the life of the company, the economic activity in general or more commonly the business world.
The field of Business Law
Business law, as a legal discipline, has as its main subjects legal persons of private law and, in some cases, persons of mixed law. Generally speaking, this major field of private law concerns the life of entrepreneurs, traders and their employees and clients. Thus, any procedure carried out by a company falls within the scope of business law. Consequently, this legislative field affects several situations mentioned in the following list:
- Company formation;
- The realization and conduct of the companies’ activities;
- The creation of links and the negotiation of companies with their collaborators and their customers;
- The functioning of the mechanism of legal activities of companies;
- The drafting, conclusion of legal acts and their application…
In order to better determine the areas of intervention of business law, the following is an interpretive list of the three main areas affected by this discipline:
- Business structure of companies: the business structure generally concerns the status of the company, the choice of the legal form of the company, the internal regulations of the company… It is the rule that allows organizing, coordinating and controlling the activities of a company.
- Commercial activity: the business relations of one company with another or with its employees and customers are always based on a contract. In this context, several types of legal acts come into play, namely sales contracts, employment contracts, partnership contracts, distribution contracts, franchise contracts, commercial lease contracts, cross-border commercial contracts, mixed contracts… On the operational side, there are, for example, financial operations such as loans, leasing…
- Sanctions: based on the same foundation as all other branches of private law, business law is also characterized by the occurrence of numerous offences. These are regulated by a specific regime that is the criminal law of business. For example, there is theft, extortion, unfair competition, counterfeiting, bankruptcy, embezzlement… Some of these offences can be brought before the criminal court. However, in the majority of cases, disputes relating to business law are judged by the commercial court. This qualification is entirely left to the sovereign appreciation of the judge.
The branches of Business Law
The branching of business law includes the five main branches listed below:
Corporate law :
It is, without a doubt, the basis of business law, as it governs the activities of companies from their creation to their dissolution. By definition, corporate law is the subject that provides the legal personality of a company while organizing its assets. In other words, its main purpose is to regulate the creation and establishment of legal persons under private law. The latter can be either companies, non-profit associations, foundations or others.
Competition law:
This area of law enumerates both the rules relating to the principle and the basic law of business. This field also has multiple links with commercial law. In competition law, the act of unfair competition, market disruption and/or disparagement are sanctioned. Thus, every company is obliged to carry out its activities in respect of its competitors and commercial regulations.
Banking Law:
A pillar of a country’s economic system, banking law generally concerns the sector of financial institutions and their activities (property management, loans, current accounts, bank transfers, etc.). In addition, any company related to one of the subjects of banking law (bank, microfinance…) is automatically subject to this law. Moreover, this matter is significantly affected by the criminal law of business. Indeed, there are many offences relating to means of payment and credit in the banking sector. These are the ones mentioned in the list below:
- Issuance of NSF checks;
- Check forgery and counterfeiting;
- The production of counterfeit money;
- Extortion;
- Money laundering…
Contract law :
The activity of the company has a usual legal translation through contracts. The contract is a tool for organizing business life. The contract is the legal support of the relationship between the company and its customer. The transfer of risks related to the activity and assets of the company to insurance companies is a widespread practice. The risks usually insured, resulting from the company’s actions or from events it undergoes, are examined. Life insurance is an element of asset management in its own right and is also used as a credit guarantee. From a legal point of view, it is subject to specific rules, primarily because of its four-party nature (insurer, policyholder, insured and beneficiary).
Commercial law:
Commercial law is directly related to business law. This field generally governs the activities of merchants.
To be specified:
In addition to these numerous disciplines, business law also includes labor law, consumer law, tax law, bankruptcy law, private international law and even European law. Indeed, a company cannot function without legal relations with employees, other companies and even the administration at national and/or international level
The importance of Business Law
As a branch of private law, business law is a “must” for all entrepreneurs not only for the adaptation of their company to the legal principles, but also for their protection against third parties. Thus, corporate law serves as a basis for the choice of the type of company and the articles of association. Competition law and contract law protect the interests of the parties in the event of a dispute. Business law plays an important role in the administration of a company. The mastery of this law is beneficial for the company. Indeed, a manager who knows the rules in commercial matters is better able to build relationships and make his company prosper more quickly. Even in the context of international relations, he is able to implement reliable investment strategies. In fact, training in business law for all teams within a company is beneficial to the company.
