• Commercial Law: Privileges and Disadvantages for Businessmen
  • September 19, 2014 | Author: Michael Rainer
  • Law Firm: GRP Rainer LLP - Cologne Office
  • The legal relationships between a businessman and his business partners are essentially regulated by commercial law. While businessmen enjoy privileges, they must also accept certain disadvantages.

    GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, DĂĽsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London - www.grprainer.com/en conclude: Commercial law is frequently referred to as a special private law for businessmen and is closely linked to company law. This applies to the following company forms: The general partnership (offene Handelsgesellschaft (OHG)), the limited partnership (Kommanditgesellschaft (KG)) and the silent partnership (stille Gesellschaft). It also regulates the so-called merchant class, entry in the Commercial Register, and the general commercial power of representation (Prokura) and power of attorney.

    While commercial law is part of private law, it encompasses important special provisions that specifically apply to businessmen and are laid down in the German Commercial Code (Handelsgesetzbuch (HGB)). Commercial law includes the regulations and legal relationships between businessmen and their business partners, as well as the issues of competition and corporate law which may arise from companies’ relationships with one another. Yet commercial law generally applies not only to businessmen, but also skilled crafts and trades, industry and other economic sectors. Furthermore, the HGB also lays down record-keeping and accounting obligations.

    Transactions between businessmen ought to be capable of being processed smoothly. Commercial law therefore envisages both privileges for businessmen as well as disadvantages, as in the case of transactions involving businessmen, the businessman, for example, is considered to be less deserving of protection than the consumer. This can quickly lead to discrepancies or even legal disputes which may ultimately result in losses for both sides.

    It is therefore recommended to obtain legal advice from the outset. Lawyers competent in the field of commercial law not only assist in enforcing your interests in the event of legal disputes, they also offer advice on many other issues pertaining to commercial law. It is often not at all clear when certain regulations need to be observed and in which cases international rules have to be taken into account.

    This also applies, for example, to collaboration with a commercial agent or an authorised dealer. In these instances, claims, inter alia, for compensation and commission have to be clarified. Things become even more confusing for the layman where distribution or franchise law is involved. Expert consulting services are indispensable here and can right from the start prevent problems from emerging at a later stage. This is even more the case if international commercial and sale of goods law apply.