The commercial law is one of the laws that are set out by the state and it is applicable to specific group of the persons residing in this state, which are specifically the traders. The federal law is deemed as part of the private law. It regulates all commercial issues related to the trade and traders in various kinds thereof. The commercial law is different from the other laws, because it is limited to specific issue and it isn’t wide and comprehensive like the civil law.
Importance of the commercial law:
The commercial law is very important; therefore, it became independent from the other laws; especially the civil law and the importance and benefit thereof can be summarized as follows:
- Rapidity: the main purpose of the commercial process is to procure the goods needed by the customer and to use the same in the various aspects of his life and in exchange the trader seeks to make profits and financial gains resulting from the process of selling the goods to the customers. Whereas, the commercial process shall be performed rapidly and in order to respond to this, the commercial law has been enacted in order to protect the customer and trader equally. In order for the trader to keep his rights and his goods, he resorts to conclude may deals and contracts that ensure all his rights and these contracts are concluded through may means such as writing, witnesses, commercial books and invoices and giving the traders the freedom to conclude these contracts led to facilitating the process of sale and trade.
- Credit: the traders need specific time to be able to satisfy their obligations and promises and the commercial law grants the trader a grace period to satisfy the promise. There was need for that, because the traders purchase large quantities of the goods that need long time to repay the price thereof and to sale the same to the customers. Such means that are given to the traders are the cheques, the dealing with the banks and commercial papers. These means protect the trader from the process of bankruptcy that he could face and deemed as support for the trade to develop himself and manage to proceed in his works and trade. The credit and the rapidity is one of the most important issues that led to enacting the commercial law and making the same independent from the civil law.
- It make differentiation between the commercial law and the civil law: the commercial law is important because it differentiates between the commercial work and the civil work, as the commercial law is concerned with the work itself without giving any importance for the trader. The civil work, however, is based upon may subjective rules that have direct relation to the obligations and it is subject to the legal system of the commercial works.
Determination of scope of the commercial law: it means that its competent circuit shall be determined and the fields, to which it is applicable, shall be specified. It is a special laws and legislation as well as the general legislation and law, which shall be drafted accurately in the fields, to which it is applicable.