Types of Commercial Law

Commercial Law is law relating to business, andfinancial institutions to make sure they are
often referred to as Business Law. There arefollowing the law. There are regulations stating
many areas of Commercial Law and other areaswhat banks are obliged to do, and what they
of law that also affect business. Below is amust not do. There can be disputes between
summary of some of these.banks and businesses that go to court such as
ARBITRATION LAWnon-paid loans or banks acting unreasonably.
This is a way of settling legal disputes withoutDISPUTE RESOLUTION
entering the courtroom, something that can beUnsurprisingly there are often disputes between
helpful to many businesses. It involves someone,businesses, or between and business and an
or a committee, acting as an arbitrator andindividual. If clients are unhappy with the service
independently looking at a case before making athey have received they may contest it. This
decision as to a way forward. Usually in thesemeans it is important that businesses fulfil their
cases the two parties will agree (and sign a legallyobligations; if they don't they could be legally
binding contract) to go by whichever decision thechallenged.
arbitrator makes.EMPLOYMENT LAW
CONTRACT LAWThere are many laws around this area, which
Throughout business, there are obviously manyboth employers and employees must fulfil.
contracts of all types. There are contractsEmployees must be paid at least minimum wage
between employers and employee, stating detailsand are entitled to at least 4 weeks paid holiday
such as employees pay, holiday, working hours(pro rata) per year. Employees must show up for
and what the job entails. There are also contractswork and do the job they are being paid for.
between businesses and their clients stating whatThere may be many other terms in a contract.
the business will deliver and how much they will beTAX LAW
paid, and then there are contracts betweenAll individuals and businesses who earn over a
businesses and other institutions, such as banks.certain amount must pay tax. Employees who
Contract Law states the way in which contractsearn over the tax threshold must pay income
must be formatted and what should be included.tax. This is automatically taken from their pay as
Whether or not a contract is legally binding isa percentage of their earning, which varies
sometimes argued. Contracts might bedepending on what they are paid. Those who are
unreasonable or the contents illegal. There can alsoself employed are responsible for working out
be disputes as to whether the terms of atheir own tax, and will be held accountable should
contract have been broken, something that isthey fail to do so. Corporations must pay
illegal.corporate tax on a percentage of their profits,
BANKING LAWalthough they can deduct money from their
This includes and dealings involving banks and theirprofits used for business expenses. This can be
relationships with a business. There are manycomplex, and the law deals with those who break
regulations around banking so it is important forthe law.