Many people use the expressions “Business Law” and “Commercial Law” interchangeably, but the truth is that they are different things.
For a long time, commercial activities were regulated by the Commercial Code – hence the name “Commercial Law.” This law dealt with the rights and obligations of traders, and to identify who these traders would be, it adopted the so-called “theory of acts of commerce.” According to her, all people who practiced commercial acts with a professional character and regularly were considered traders and should obey the rules of the Commercial Code.
Scholars and judges circumvented the problem using the revoked regulation as a parameter and other concepts found in sparse laws – which, being more recent, no longer adopted the outdated theory of acts of commerce. However, the confusion caused another theory to gain space in the law: the Theory of the Company.
The Theory Of The Company
According to this theory, which started to use the terms “company” and “entrepreneur,” instead of “trade” and “merchant,” an entrepreneur is not thus defined based on the type of activity he carries out but based on how this activity is carried out. Thus, an entrepreneur will be considered as anyone who carries out an organized economic activity, focused on the production or circulation of goods or services – regardless of what type of activity it is.
This theory of the company was adopted, which partially revoked the old Commercial Code, giving rise to the so-called Business Law. For this reason, according to most experts on the subject, when we talk about business activity, it is more current to use the term Business Law, since Commercial Law nowadays concerns the rules of Maritime Law, which were not revoked in the Commercial Code.
Companies and business relationships are part of our daily lives and have an essential role in the country’s economy. For this reason, and especially for those who work in the business world, it is essential to know these concepts and characteristics of Business Law well – not only to act following the law but also to be aware of their rights and not accept that anyone violates them.
Business Law is essential for the entire community. In the modern economy, companies play a prominent role, being responsible not only for the profit of their owner but also for the interest of society as a whole. After all, they are responsible for generating jobs, collecting taxes, economic and social development, and countless benefits that affect society. Because it is a branch dedicated to the study and regulation of precisely these relationships, it deserves so much attention. Click here sequoialegal.com for more info about business law