What is Business Law?

busseness Law

Business law which is also called commercial law or mercantile law is the set of laws that governs business and Commerce. It governs the dealings between the business, people, and commercial matters. It controls and regulates cooperate contracts, goods manufacturers, sale of goods, hiring practices, etc. Business law has two different areas. 

Scope of Business Law

First is the regulation of commercial entities through various laws like partnership laws, company laws, agency laws, etc. Second is the regulation of commercial transactions by way of contract law. Business law is the body of laws that applies to rights, duties, relations, and conduct of businesses and people engaged in Commerce, trade commercials, merchandising, etc. it is generally considered as a branch of civil law. It deals both in private law and public law issues.

Difference between Business Law & Corporate Law

Some major differences between business and corporate law are given below:

  • Business law is that law which deals with the market sector of the economy where corporate law generally deals with corporate bodies and their operations. Many laws come under the ambit of business law such as contracts, taxes, employment law, etc. On the other hand, corporate law more focuses on the formation and management of corporate entities.
  • The business law always considered business as an activity of buying and selling goods and services. And also the activity of manufacturing distribution and other commercial activities. Where the corporate law is focused on operations of the Corporation, shareholder rights, and duties of the management. So basically it deals with the primary problems of the corporations. 
  • The main activities that come under business law are the organization of business, business management, meetings, voting, etc. Corporate law operates with the issues like choice of an entity like a partnership, sole proprietorship, limited liability company, Corporation, etc.
  • The business law usually deals with central entities in investigating a business or filing complaints. And corporate law deals with the protection of investor’s rights, acquisitions, issues regarding a corporate structure, etc.
  • Under business law, a plan is made to represent the potential investors and lawsuits where the business is involved whether directly or indirectly. Under corporate law, a business model is incorporated which deals with contracts like international identities. Under this, a corporate lawyer ensures that both the parties are eligible and the contract is legally enforceable. 
  • Besides the business law is that law which tends to provide guidelines in case of sale and purchase of items. And corporate law turns to affect Business significantly did many companies engaged in legal troubles due to the violation of corporate mandate.


What is Included under Business Law?

Business Formation

Setting up a business is the first step in business law. Legally, each business has a legal entity. Always starting a business starts with formal paperwork which is necessary to make it legally valid in the government’s eyes. The process of paperwork may vary from state to state and types of business. 

Employment Consideration

When we start a business the need for employees is very obvious and foremost. Employees are needed for all the work done in business or firm. Business law helps to analyze the need of workers, their hierarchy, and their relationship structure. Business law helps to decide salary and other benefits. It also teaches the practices and ways to handle the staff efficiently. 

Immigration Law

There is a very close relationship between business law and immigration law. Because many times business needs foreign employees or they had to deal with international and overseas parties. Various things like traveling overseas, foreign countries’ rules, own country’s criteria can be known from immigration law.

Sale of Consumer Goods

Buying and selling of goods in business are very important and day to day task. And it is not so easy. There are various things that a business has to take into consideration – rules and regulations, working conditions, price control, etc. So while dealing in sales and purchase to maximize profits and customer satisfaction, business law helps a lot. 

Contract Drafting and Negotiations

In a business preparation and negotiation of contracts is very often and important. A contract means terms and conditions to regulate the trade which is mutually accepted by parties. So while drafting a contract important precautions has to be taken Otherwise a small mistake can prove very fatal for the business. So business law teaches how to draft contracts properly so that future problems can be avoided. Also while doing negotiations, a person who is well studied in business law can do a great job. 


It’s quite obvious that the main motive of a business is to make profits. So businesses always want to have most of the market under their control. But whatever needs to be done, it should always be done legally. The organizations which adopt unfair and foul methods to avoid competition or to get control over the market gets charged with allegations of the anti-Trust violation. So it is the business law that could teach us the right way and save us from misfortunes.

Intellectual Property

When some new product or technique is invented by a business, it’s important to make sure that their ability to make profits from that invention should be protected. So that the business could get an exclusive right on its invention. This can be done under intellectual property law or copyright law. These also come under the ambit of business law. 


Tax is an integral part of a business. Every business has to pay a certain amount of tax to the government based upon its income. It’s the main source of income for the government. So to get maximum profits and pay taxes in such a way that it could minimize the burden, business law could help. 


Many times a business has to go through tough times. And maybe filing bankruptcy can be the only option to avoid problems. This decision is just an initial step and many things can be done to improve the situation in the future. There are many times of bankruptcies with their own merits and demerits. Business law can help to make the best decision to improve the situation.


Written by Yashika Jindal

Yashika is a second-year law student at UILS, Panjab University Chandigarh. She wants to a Judge so that she can serve society and bring a revolutionary change in the legal framework. She is a passionate and hard-working person who loves to learn new and innovative things. Apart from the law, she has a great interest in social work and music. She is always on the hunt for great opportunities that can help to develop her personality and legal skills.

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