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What is business law? Everything you need to know 17 April, 2019   

Business Law is the study of rules and regulations that are to be followed in every Business enterprise. The concept and scope of Business Law are very wide and requires great insight to understand its might and importance towards any business enterprise. Business law is what affects the working of the business firm. The business law regulates practices such as;

Hiring or recruitment of all the employees of the corporation.

Production and manufacturing process of the good and services

Sales practices that affect the financial conditions of the business whether resulting in favour or against the company.

Entrance into any Contract or written document that is to be bound legally with the consent of all the involved parties.

To understand more about Business Law let's jump right into it.

What is Business Law?

As per the definition of business law, it is an accumulation of all the laws that tell us how to form and operate a business enterprise. Business Law includes every aspect of a business whether it is commencement, buying, selling or managing. Business Law also consists of several other factors of Law such as State, Administrative and Federal Laws.

But Business law and its elements is a very vast subject. So, if you are here to find the answer to the question that "What is Business Law?" then you have come to the right place.

Basis aspects of Business Law

To understand the true might of Business law as a subject, there are some things that we should know about. These things might seem like something very basic but it is what makes up to Business Law. Here are some of the points that Business law deal into:

Commencement of a Business: All the rules and regulation that concern with the topic of Commencement of any Business enterprise comes under Business Law. There are a lot of rules and any firm that follows every one of them are able to commence their business.

Sales of business: Sales of any goods or commodities that concern the accounts of a Business enterprise are enforced under Business Law. Whether it is machinery or edible products, their treatment will be done as per Business Law.

Selling or Hoarding on any goods that are not legal in the country is punishable as per the business law. Similarly, there are other rules that are led down by the same.

Parts of Business Law

Business Law is not the end of the Law concerning business enterprises. It is further divided into many parts. The parts of business Law are:

Agency law

Arbitration

Audit legislation

Corporate Law

Bankruptcy

Commercial crimes

Business Law journals

Competition Law

Consumer protection law

Fisheries Law

Financial law

Industrial relations

Insolvency

Financial regulations

International Trade Law

Intellectual Property Law

Organizations by Legal Status

Negotiable instrument law

Labour law

Corporate taxation

Contract Law

Among all of these, there are three parts that have much more important than any other and they are, namely, Commercial Law, Contract Law and Corporate Law. These both sum up to form the complete term of Business Law.

1. Commercial Law: Commercial Law is that area of Business Law that deals with the behaviour, relations and conducts between any business and an individual. Both the parties should be related to each other concerning some sort of commerce or monetary exchange.

2. Contract Law: Any employment begins with a contract and if there's not one then certainly it is not a legal entity. From buying houses and bikes to purchasing something as common as car insurance comes under the study of Contract Law. Some major aspects of Contract Law include:

Formation of a Contract,

Terms and conditions of a contract,

Discharge and Vitiating Factors, etc.

3. Corporate Law: Corporate Law is that branch of Business law that lays down rules and regulations that state the base for business and its existence. By this, I meant to say that, corporate law governs all the formalities that look over the commencement and operation of the business. Some important aspects of Corporate Law are:

Commencement of the business

Management of all the formalities of the issue of shares

Powers and duties of creditors and debenture holders

Role of Business Law

As now you are aware of the basics to the statement "what is Business Law", we should understand the benefits of Business Law. Business law empowers a firm or company with much legal compliance. Some of the major roles that are played by Business Law in real life are:

Limited Liabilities: A registration under the business law makes a business an entity with limited liabilities. This means that any corporation is a separate legal entity and have perpetual succession. The business law states that a company and its owner are two separate entities, not one. Henceforth, the liability of the owner is not considered as the liability of the firm and vice versa.

Transferability of Shares: the means that describe how the transferability of shares should work comes under the Business law. These cover every aspect of shares, whether it is equity, debenture, sweat, bonus or any other special specific bond. Shares are an insured asset and are related directly to the capital of the firm. Therefore, shares and its other aspect are treated as per the rules and regulations of the business law.

Capacity to file a suit: Business law covers each and every rule that describes the treatment of frauds and crimes under any the name of any Business corporation. As soon as the firm commences its operation in the world, they are bound towards any fraud or mishappenings that can lead to a court case.

Winding up: Another major role that is covered under Business law is the treatment at the time of companies' wind up. Winding up is the term used to address the end or closure of any firm existence in the books of law.


Business law is categorized into a total of 23 sub-categories and each category works on separate terms without conflicting with any other.

It helps us to know about how a business and its owner are two separate entities and how both the parties are legally bound with each other. So, there you have it. I suppose by now you would have got the answer to “what is Business Law".


Business law Commercial law contract law Corporate Law Business Rules Business Regulations B2B laws

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