There are many branches of law: commercial, constitutional, construction, contract, corporate, criminal – and that's just the Cs. Each is an umbrella term covering a variety of legal areas.

At first glance, commercial law – also known as business or trade law – might seem like an especially roomy umbrella. A working definition might be a "body of law which governs commercial and business activities", supporting businesses to make sales while ensuring they're in line with laws and regulations.

Commercial law includes laws on contracts, sales, banking, insurance, finance, bankruptcy, taxation… any area in which companies and individuals take part in transactions.

It exists to protect parties who enter into contracts of all kinds – as big as a mortgage agreement, as small as a paper receipt – and in doing so to safeguard and protect consumer rights. It also exists to crack down on fraudulent activity and unfair trade practices.

This might still sound like a bit of a legal beast, so let's take a moment to break down some of the things covered by this branch of the law.

What sort of things are covered by commercial law?

This is by no means an exhaustive list but should give you an idea of the scope of commercial law.

1. Business regulation

If you're running a business, your activities have to comply with laws and regulations. These often seek to protect the general public from harm. Health and safety is probably the most well-known of these, but there are also regulations on fire safety, tax and waste disposal.

2. Competition law

Competition between companies is actively encouraged by our legal system. Competition, it's argued, brings down prices, treats the consumer to a wider range of options and drives up quality – all of which benefit buyers.

Consequently, instances of anti-competitive behaviour – where businesses work together to limit competition, for example by making a deal to match prices – are restricted under UK commercial law.

Commercial law also seeks to protect competition by restraining large companies from abusing their power. For instance, a company that dominates its market might attempt to exploit their position by overcharging customers – competition law exists to crack down on this kind of behaviour.

3. Copyright law

The purpose of copyright is to protect the creators of films, artwork, and other creative industries from having their work copied and distributed without permission. In the event of copyright infringement, it's a commercial lawyer who'll be called upon to deal with the legalities.

4. Contract law

This is one of the biggest areas that comes under commercial law. Each of us enters into multiple contracts every day – by buying ourselves a sandwich, taking the bus or downloading an app and accepting the terms and conditions. Bigger and more byzantine examples include tenancy agreements, mortgages, loan agreements and employment contracts.

Contract law defines the rights and obligations of both parties in a contract. It sets out what makes a contract valid along with remedies available to both parties should a contract be breached.

In other words, if a contract is violated by either party, the contract lawyer's job is to assess the situation and make a judgment as to where the blame lies and what the solution should be.

5. Environmental law

This seeks to restrain companies from activities that damage the environment, for instance by threatening species' habitats or by producing excessive carbon emissions.

6. Intellectual property (IP) law

This branch of commercial law applies mostly to creative industries and manufacturers. It deals with the patenting of inventions, intellectual ownership and the copyrighting of creative work.

These are just some of the areas covered by commercial law. As you can see, the common thread is that they all seek to regulate the activities of businesses to ensure fairness.

What do commercial lawyers do?

Commercial lawyers are there to make sure that business is conducted in line with regulations and laws. They seek to protect the interests of clients and customers by minimising the possibility of conflicts.

In larger firms, commercial lawyers tend either to have a specialist practice area – environmental law, say – or to focus on a particular industry. In smaller firms, commercial lawyers are simply those who represent businesses (from start-ups to established firms) rather than individuals.

Commercial lawyers will either focus on transactional work or act as litigators.

Transactional work involves giving advice and ensuring that the business's affairs are legally sound. A commercial lawyer will draft and review contracts, shareholder and partnership agreements and disclaimers. They'll always be on the lookout for ambiguities that could lead to conflict between the two parties.

Litigation, by contrast, means representing a company or individual who feels they have been wronged.

Here are some examples of a commercial lawyer's expertise:

Contract law. A contract lawyer can assist you in drafting clear, unambiguous contracts that minimise the possibility of conflict between parties.

• Offering tailored legal advice to startups.
  
  
• Franchise agreements.
  
  
• MBOs, MBIs and business purchases/sales.
  
  
• Joint ventures. Entering into a joint venture can open many doors, but it's important to go into them with clear expectations to avoid miscommunication down the line. A commercial lawyer will help you draft a joint venture agreement that's clear and unmuddled.
  
  
• Shareholders agreements. A clear, legally sound shareholders agreement provides stability for your business, but it needs to take into account everyone's best interests. As with joint ventures, a commercial lawyer can help you to achieve this.

Looking for commercial legal advice?

Here at Milners, we provide tailored legal advice to sole traders, partnerships and companies from many different industries. We're dedicated to delivering legal support that's both exceptional and affordable, taking care of the intricacies of commercial law while you get on with business.

In the market for a one-off consultation? Need ongoing advice? Find out more about our commercial law services and book yourself a free consultation.