Businesses operate in the commercial space, and to be profitable, they must conduct transactions. These involve regulatory compliance that helps to afford legal protection to all involved parties. In South Africa, this is covered by Commercial Law, which ensures transparency and ethical behaviour by all involved parties.
The various types of commercial laws help to cover all aspects of running a business. These laws are designed to protect the consumer, the business, and all the stakeholders.
In this article, we will cover what is commercial law, the different types of commercial law, and the steps to start a career in commercial law.
Table of Contents
What Is Commercial Law?
Commercial law in South Africa was established to cover the rights and operations of individuals and entities within the commercial landscape. This includes transactions, mergers and acquisitions, and the sale of goods.
Beyond that, when we try to define what is commercial law, it also aims to ensure that businesses are run ethically and maintain the interests of investors and stakeholders. Commercial law also covers workers’ rights and whether they are treated justly and offered fair compensation for their services.
The primary source of commercial law in South Africa is the Companies Act of 2008, which defines rules and regulations for businesses registered in the country. It also helps to promote South Africa as a stable business destination and helps attract foreign investment.
The business environment can be volatile, with risks and unforeseen factors that can disrupt operations. Therefore, commercial law is necessary to protect the interests and rights of all involved parties and guarantee their success and growth.
What are the Different Types of Commercial Law?
Before conducting business in South Africa, businesses need to understand the concepts and principles covered by commercial law. This allows them to operate ethically and within the country’s legal system.
The Companies Act was signed into law by the President of South Africa to help regulate how businesses operate, promote competition, and comply with international standards. For a business to function seamlessly, various departments must work efficiently to help meet the company’s goals and targets.
While studying commercial law, students are bound to question what is commercial law all about. it is essential to note that the law was formulated to cover the transactions and processes of various departments. This helps to protect all the internal and external stakeholders affected when running a business.
Commercial law requirements include lawyers to have an in depth knowledge of the Companies Act along with other acts that are relevant to a specific field within the umbrella of commercial law.
Below is a short overview of the different types of commercial laws in South Africa.
- Contract Law: This supports the manner in which contracts are drawn between two business entities when they decide to join hands. Commercial law attorneys can help businesses draw contracts, negotiate terms, and add clauses for breach of contract and disputes between parties.
- Intellectual Property Law: These laws help to govern companies’ intellectual rights, which can include copyright infringement, trademarks, and patents. Lawyers can seek a specialisation in Intellectual Property law at the Master’s level.
- Competition Law: This law helps promote fair competition in South Africa’s marketplace. It also covers anti-competitive behaviour, which leads to monopolies within an industry. Competition law can also dictate mergers and acquisitions.
- Consumer Protection Law: Any business is profitable because consumers purchase the end product. When we look at what is commercial law, consumers are one of the entities that it helps to protect. Consumer Protection law helps to protect the rights of the consumers and ensures that businesses resolve disputes and treat them fairly.
- Labour Law: Employees are the backbone of any company, and the Labour Relations Act of 1995 was passed to protect their rights. It governs workplace policies, benefits, holiday structure, unionisation, and contracts.
- Tax Law: This is a high-demand field within commercial law, and experienced lawyers help guide companies in their tax structure. They also work with accounting and financial management teams to lower taxes while complying with taxation guidelines.
- International Trade Law: As businesses grow and expand into international markets, they need guidance on import-export laws and customs regulations. International trade lawyers help companies navigate various regulations and help them gain permissions, etc.
What is the Difference Between Corporate Law and Commercial Law?
While understanding what is commercial law, it is common to get it confused with corporate law since they were both created to assist businesses. Corporate law is limited to a corporation and how it complies with regulatory and financial norms. It includes creating and dissolving companies, shareholder rights, and raising capital. At its core it deals with corporate governance and corporate finance.
Since corporate and commercial law both cover businesses, they overlap in certain aspects, such as mergers and acquisitions. Corporate law establishes the feasibility of operations and maintains that capital was raised transparently and legally. Commercial law guides companies in navigating any issues relating to monopoly anti-competitive practices.
The table below examines the difference between corporate law and commercial law.
|
Criteria |
Corporate Law |
Commercial Law |
|
Definition |
Legal aspects of a corporation |
Covers transactions and activities |
|
Scope |
Narrow, limited to how a business conducts itself |
Broad, related to how a business interacts with all parties |
|
Key areas |
Corporate governance, corporate finance |
Consumer rights, Intellectual Property Rights, taxation, international trade |
|
Stakeholders |
Company and shareholders |
Business owners, consumers, supplies |
|
Purpose |
Ensure accountability and compliance with various regulations |
Fair trade and to protect the rights of all involved parties during transactions |
Commercial Law Qualifications
Students who wish to practice commercial law need to complete their matric and an undergraduate degree. Commercial law qualifications require all lawyers practicing in South Africa to complete an accredited Bachelor of Laws (LLB). It is offered as a four-year programme at the Regenesys School of Law, and students can choose to complete it offline or online.
The Regenesys curriculum includes courses in International Law, Intellectual Property Law, and Patent and Copyright Law, which are sections of commercial law. This offers students a foundational knowledge of various aspects of commercial law. When one tries to answer what is commercial law, it is a compilation of all these individual laws, many of which are in high-demand in South Africa.
Before students can practice, they must complete training under an experienced lawyer and pass their external law exam. Finally, they must apply for admission into the profession from the High Court.
What are some Commercial Law Careers in South Africa?
Just like with a business, there are various professions that work within the commercial law framework. When we think about what is commercial law and the careers it offers, it is easy for most people to name lawyers and judges. However, it also includes support staff such as Paralegals and Clerks who provide support and conduct research.
Commercial law careers can also include legal advisors who are appointed within a corporation to help guide a company through a significant sale or a merger. Let us look at some commercial law careers in South Africa.
- Legal Advisor: Large multinational corporations can have an in-house legal advisor who heads their own team. They help guide a company through international trade deals, acquisitions, and supplier contracts.
- Commercial Law Attorney: Often, companies need to head to court if there is a breach of contract or Intellectual Property Rights infringement. A commercial law attorney, preferably one with years of experience in a particular field, will help defend their client in court.
- Taxation Lawyer: These are highly competent lawyers with a strong background in accounting and solid mathematics skills. They guide corporations to minimise tax while staying compliant with financial regulations.
- Legal Analyst: Lawyers need to comb through large amounts of data when they are working with corporate clients. A legal analyst can help lawyers conduct research and analyse how existing laws can be used in their favour.
- Consumer Protection Lawyer: Consumers are critical stakeholders within the commercial landscape. These lawyers are trained to defend consumers’ rights and protect them from false advertising, deceptive pricing, and inferior products.
How to Get Into Commercial Law?
So far, we have covered what is commercial law and the various types of commercial laws in South Africa. Let us now cover, commerical law requirements and qualifications.
In South Africa, a lawyer is a generic term referring to all those practising within the legal system. Law students can pursue a career in commercial law as attorneys or advocates.
Attorneys serve as clients’ first point of contact, providing legal advice and drafting documents. Conversely, advocates are lawyers who present cases in court and defend clients in front of a judge.
Steps for Becoming a Commercial Law Attorney in South Africa
- Complete LLB
- 2 years of Articleship at a registered law firm
- Pass the Attorneys Admission Exams
- Apply to the High Court for admission into the profession
Steps for Becoming a Commercial Law Advocate in South Africa
- Complete LLB
- 1 year of pupillage under an experienced advocate
- Pass the Bar Exam
- Apply to the High Court to be admitted into the profession
- Register with the Legal Practice Council
- Be admitted to the Bar of the area in which you wish to practice
Lawyers can gain experience while working under experienced attorneys and advocates. They can also choose to return to university for a Master of Laws (LLM) programme, focusing on commercial law or one of its various fields.
Conclusion
Commercial law in South Africa is designed to help protect the interests of all the parties conducting transactions within a commercial space. If we try to answer what is commercial law, it includes various sub parts, and a specialisation in some is in high demand in South Africa.
Lawyers working within the realm of commerical law and choose to focus in taxation, international trade, and intellectual property law. Attorneys and advocates experienced in the field of commercial law can be part of an in-house legal team or choose to work at independent law firms.
Aspiring commercial lawyers should check the curriculum and requirements for admission at the Regenesys School of Law.
FAQs What is Commercial Law
What is commercial law?
Commercial law meaning in business is that it governs the rights of individuals and entities involved in business transactions. It includes areas like contracts, mergers, consumer protection, and corporate governance.
What are some commercial law careers?
Some commercial law careers include legal analyst, consumer protection lawyer, taxation lawyer, and legal advisor.
What are the advantages of commercial law?
Commerical law is an important aspect of the South African legal system since it helps to protects the business transactions between entities. It helps to promote entrepreneurship and makes South Africa favourable destination to conduct business.
