Subject:

LEGAL AND
BUSINESS
FUNDAMENTALS
 TOPICS WEEK 1:

Differences between civil acts

and commercial acts

Topics Week 1 Legal requirements to be a

trader

Individuals and legal entities

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 Why is it important to know
Commercial Law?

Commercial Law is a broad term for a range of legal

services designed to support businesses in making mo-
ney from their products and services. Commerce is at
the core of a democratic society and, in order to be
strong economically, it must be attractive to businesses.
Commercial law focuses on the sale and distribution of
goods, as well as financing of certain transactions.
One way of doing this is to have a strong set of laws
and regulations protecting businesses that enter into
agreements with others and providing resolutions when
things don’t go to plan. Commercial law provides that
platform.

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 Which are the most important
sources of law and why?

Commercial law is primarily regulated by the Uniform

Commercial Code (UCC), which is a model set of laws
regarding the sales of goods, leases of good, negotiable
instruments, and secured transactions.
All states have adopted some form of the UCC, though
each state is free to make its own modifications to the
laws as it sees fit. Because many states have modified
at least some of the UCC provisions to fit their needs, it
is important to hire a lawyer familiar with the UCC as it
has been enacted in your state.

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 What acts and operations are
considered as commercial?
Some of the activities considered by the Commercial Law as commercial activities are as follows:

The acquisition of goods for consideration destined for

sale in the same manner and their sale.

The acquisition of personal property for consideration

destined for leasing; their leasing, the leasing of all
types of goods to sublet them and their subletting.

Receiving money at interest, with or without collateral,

to be loaned, and the subsequent loans, as well as gi-
ving money regularly in mutual interest.

The acquisition or disposal, for consideration of com-

mercial establishments, and the pledging, leasing, ma-
nagement and other similar operations related to them.

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The intervention as an associate in the incorporation of
commercial companies, their administration of these
acts or the negotiation for consideration by the parties
of interest, quotas or actions.

Banking, stock market or hammer operations.

Companies that execute works or construction, repair,

staging, installations or ornamentation.

Companies that promote businesses and the purchase,

sale, administration, custody or circulation of all kinds of
goods.

Other acts and contracts governed by commercial law.

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 How do we differentiate a civil
act from a commercial act?
CIVIL ACT
It is regulated by
Civil Law
It is carried out by
individuals
When I sell one house
to buy myself a bigger
one and use it to live
and use it to live there
with my family.
I am a family man.
COMMERCIAL ACT
It is regulated by
Commercial Law
It is carried out by There is profit and
commercial
merchants
speculation
When I sell one house
to buy another one to
carry out improvements
and sell it at a higher
price, and then buy
another house to sell it
at an even higher price.
I am a
real estate.
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 Who is considered to be a trader?
TRADER

Natural Person Legal Person

Requirements: Requirements:

Performs acts of commerce Commercial Companies

Has the capacity to carry Incorporated in accordan-

them out
Carries out commerce as a
daily activity
i. e.: Insurance Salesperson.
ce with the General Law of
Commercial Companies
i. e.: “Inmobiliaria Beka”,
a Variable Capital Limited
Company.