Warning
Info
Warning
Info
Simple English definitions for legal terms
commercial law
Read a random definition: religious liberty
A quick definition of commercial law:
Commercial law is a set of rules that governs how businesses and consumers interact with each other. It covers many different areas, such as banking, contracts, real estate, and sales. The Uniform Commercial Code is a set of laws that most states have adopted to help regulate commercial transactions. It has 13 different sections that cover everything from general provisions to secured transactions. Commercial law helps ensure that businesses and consumers can work together fairly and efficiently.
A more thorough explanation:
Commercial law is a set of rules that governs business, trade, and transactions between consumers and businesses. It covers a wide range of areas, including:
- Banking
- Bankruptcy
- Consumer credit
- Contracts
- Debtor and creditor
- Landlord-tenant
- Mortgages
- Negotiable instruments
- Real estate transactions
- Sales
- Secured transactions
For example, commercial law regulates how banks operate, how businesses can declare bankruptcy, and how consumers can obtain credit. It also covers the legal requirements for contracts, such as what makes a contract valid and enforceable.
The Uniform Commercial Code (UCC) is a set of laws that has been adopted by most states in the US. It covers many areas of commercial law and is divided into 13 articles, including:
- Article 1: General Provisions
- Article 2: Sales
- Article 2A: Leases
- Article 3: Negotiable Instruments
- Article 4: Bank Deposits
- Article 4A: Funds Transfers
- Article 5: Letters of Credit
- Article 6: Bulk Sales
- Article 7: Warehouse Receipts
- Article 8: Investment Securities
- Article 9: Secured Transactions
- Article 10: Effective Date and Repealer
- Article 11: Effective Date and Transition Provisions
These articles provide specific rules and regulations for different types of commercial transactions. For example, Article 2 covers the sale of goods, while Article 9 covers secured transactions, such as when a lender takes collateral to secure a loan.