Conflict is an inevitable aspect of the business world. There are various types of conflicts in businesses; some are simple and can be settled by mediation or negotiation. However, others are complex and can be detrimental to the parties involved. In such a case, litigation would be a viable method of resolving the disputes. The process requires the application of certain laws, hence the need for legal expertise. In most cases, companies hire experienced commercial solicitors to help in settling the dispute.
What are the branches of commercial law governing business disputes?
- Contract law
Contract law involves the regulations concerning business contracts. It sets out the critical elements of a valid contract and the available solutions to parties in cases of a breach. When you file a lawsuit claiming a violation of the agreement, the first question that comes up is whether there was a binding contract. The document should also prove the essential elements to prove its existence. These are;
- Property law
Property law involves property transactions and may include the sale, lease, transfer, or rental of immovable properties. There are various property rights, and most property disputes revolve around this. These are the right to procession, the right of exclusion, control, and the obligations of property owners.
The rights define the ownership of resources and how to use them. In most states, you can exercise property rights by accumulating, holding, renting, selling, or delegating property.
- Business regulations
This law encompasses various government regulations and rules regarding the operations and running of companies, factories, trade unions, and more. These laws are critical for business owners. They help in understanding what’s expected in different dealings and business transactions.
With such laws in place, it’s easier to resolve commercial conflicts. Besides, mediators and solicitors refer to such laws during dispute resolution. What’s more? These regulations impact how corporations structure their businesses, location, and employee classification. They also affect many other aspects of a business.
- Corporate law
Corporate law governs the rights and relations of companies and enterprises. It involves deals in the formation, management, and termination of business operations. It sets out all the provisions for business issues like the election of directors, prevention of insider trading, dividend distribution, and raising of capital. It also deals with share redemption, mergers, and acquisitions.
- Tax law
Tax law involves regulations governing levies and direct taxes on business transactions. There are different types of taxes; they include; sales, income, gift, capital gain, and profit distribution taxes. However, the percentage of tax varies between businesses.
For instance, small businesses with one owner pay about 13.3%, but those with more than one owner pay 23.6% on average. Similarly, corporations pay a higher tax rate, and this is because they earn more income than small enterprises.
There are different laws governing business operations. In case of disputes, litigation attorneys employ the stipulations in resolving the conflict. Whether it’s a contract breach, employee dispute, or tax issue, engaging an attorney goes a long way. Such professionals have a better understanding of the law and offer the necessary legal guidance in dispute resolution.