Business in Commercial Law
There are many reasons to operate a business, but a popular one is to make money. There are lots of ways that companies can make money, but some of them are contrary to the public good, such as compromising on the quality or safety of goods or making false representations to the public.
Consumers trust companies and purchase their products or services because rules and regulations are in place to protect the consumer and to make sure companies don’t endanger or mislead the consumer in order to save money or earn more of it.
These rules and regulations help protect the public, the environment, and competition. This in turn creates more choices for consumers, and more trust in the companies that make and market the products.
The business has to balance the need to make a profit with the requirement to follow rules and regulations created to protect the public. The regulations may not all be designed to benefit the business, but they are created to care for the needs of various parts of society and its members.
The business transaction portion of commercial law also focuses on anticipating events that may happen in the course of commercial transactions between parties.
The goal is to prevent any problems, and to complete the transaction in an efficient, compliant and profitable manner for all of the parties. Sometimes things happen that prevent the completion of the contract, and the contract itself can guide parties in resolving a dispute created by the underlying transaction. Proactive protection can prevent painfully expensive problems in the future.
Business agreements should be mutual, so that each party feels like it is being treated fairly and is more inclined to follow through on the agreement. Transparency in the contracts create a feeling of trust, security and certainty between the parties, allowing the contemplated transaction to proceed smoothly.
If all of the parties are confident in the contract and what their rights and obligations are, then the likelihood of dispute due to ambiguity or dissatisfaction is reduced.
Lots of busy business owners search online for copies of forms and information about their business transactions. While the information itself can be useful, the internet can’t provide specific legal advice regarding a particular transaction.
A trained commercial lawyer can provide that customized legal analysis and make it applicable to the business. It can only provide general information, not a specific analysis applicable to the particular situation a business owner may face.
While consumer protection laws are in place to protect the average person, who is often the end user or a product or service, commercial law will control business transactions. The assumption is that the business audience is more experienced in these types of transactions, and so are able to negotiate more freely.
These sophisticated participants have a heightened level of experience in business dealings, and also the ability to invest in legal resources to assist in understanding the risk involved in the transaction. There’s not going to be a second chance to renegotiate the contract because one of the involved parties didn’t get proper assistance to understand it the first time.
I hope this information has been helpful. I’m Jenna Zebrowski, and I’m a real estate lease lawyer, but I’m not your lawyer yet. This information is provided not as specific counsel, but as general information to help you make an informed decision about your commercial lease. Remember, hiring a lease lawyer in often much cheaper than getting in a bad business situation. Give me a call if I can help (817) 841-5762.