COMMERCIAL CONTRACT LAW

Commercial Contract Law

Commercial Contract Law

Commercial Contract Law

Commercial law is the branch of private law which relates to merchants and commercial transactions. Indeed, this law contains both rules relating to merchants (merchant status, conditions for conducting business professions, obligations), and also the rules applicable to commercial transactions. The Commercial Law is therefore both right acts of trade and foreign traders. This law must be considered the law on business or as the law merchant. This law consists of provisions dealing with people and provisions relating to commercial transactions. It is the most important formal source of law. Commercial law is the ultimate source of DM. Corporate law applies only and exclusively in matters considered as commercial. Commercial law is also international conventions adopted by the Senate, for example the Free Trade with North America (FTAA) and the Treaty with the European Union.

Scenario One

First scenario is where the company hasn't disclosed the shipping company that the purchasing company is an agent of GTC (Global Technology Corporation). This company is the rival of the company who is sending the goods. Therefore, the purchasing company didn't inform the other company that the both are alliances. The company even entered into a contract with the other company for the shipment of the goods. Before the shipment of the goods, the MGC demanded to exclude GTC from the contract. In refusal of excluding the GTC, the company is refusing to send the goods.

This scenario is related to the disclosed and undisclosed principle. According to the undisclosed principle, the law is related to the liability of an agent for the obligations which have been incurred on the behalf of the principal. The agent, i.e. the company ordering the goods in this case is liable for undisclosed that the company is acting on someone's behalf (in this case acting on behalf of GTC). According to the undisclosed principal, if the company hides the name of the principal, on which it acts on then the company, is liable for its actions. If, the agency discloses the name of the principal as per disclosed principal then he will normally be held for the commitments taken by the authorized agency. Although, the possibility that someone (the principal) may become legally bound and entitled by the acts of someone else (the agent) is the essential characteristic of agency/representation in both the common law and the civil law legal systems.

According to the disclosed principal, the third party must know that the agent is working and acting on some other principal's behalf. The third company must be informed and aware of the acting agent and identity of the principal. As per the undisclosed principal, the agent represents that the company is acting on its own accord and is not related to any other agency or principal. While the civil law countries require, as a general rule, that the agent shall act in the principal's name for the direct effects of agency to take place, the common law countries do not require, again ...