Commercial Law vs Corporate Law – Key Differences

The following article highlights the key differences between Corporate Law and Commercial Law. Read on to know the career prospects in both the fields.

The field of Law offers students wide career prospects, including being a Litigation Lawyer, Legal Assistant or working in a Law firm, among many others. The field of Law has many subjects in which students choose to specialize. The two such specializations are Corporate Law and Commercial Law. These two subjects are different from each other and are focused on different topics in spite of being related to business. If you want to make a career in the corporate sector after studying Law, then you should have a good knowledge of both these subjects because only then you will be able to choose the suitable specialization for you.

What is Commercial Law?

Commercial Law is the branch of Law that governs commercial transactions and business dealings. It is also known as Mercantile Law or Trade Law. Contracts, insurance, import and export, banking etc. come under Commercial Law. Actually, this branch of Law deals with laws related to trade, industry and commerce. Some common legal issues that may be regulated or resolved through Commercial Law include breach of contract, advertising and marketing disputes, unfair competition, consumer complaints, and protection of intellectual property.

Eligibility and Subjects for Commercial Law

To make a career in this field, candidates can pursue five-year integrated LLB (like BA LLB, BBA LLB, BSc LLB) after 12 standard or three-year LLB degree after graduation and then can opt for LLM in Commercial Law. Apart from the degree course, diploma course can also be done in this field. Although the curriculum of Commercial Law varies by college/university, some of the common topics taught in the LLM Commercial Law program are listed below:

• Legal Research

• Comparative Public Law

• International Trade Law

• Competition Law

• Commercial Arbitration

• Intellectual Property Law

• Investment Law

• Corporate Law & Governance

Career prospects in Commercial Law

Your main responsibilities in the area of Commercial Law will include advising clients on various day-to-day legal issues. In addition, you can specialize in a specific practice area such as dispute resolution, capital markets or banking. A career in this field requires a sound knowledge of Law, high-level writing and reading skills as well as "professional awareness". Usually, one can work in this field as Legal Manager, Contract Attorney, Legal Consultant, Legal Researcher, Legal Assistant etc.

What is Corporate Law?

Corporate Law is also known as Business Law, Enterprise or Company Law. It is the branch of Law, which deals with companies and their structure. It governs the formation, management and operation of companies, and covers matters such as reorganization, shareholder rights, mergers and acquisitions. It also covers the rights and obligations of persons involved in establishing, financing and running the company. Corporate Law is one of the most popular Law specializations being opted by the aspirants these days.

Eligibility and Subjects for Corporate Law

Candidates who wish to make a career in the field of Corporate Law can take admission in Undergraduate (UG) and then Postgraduate (PG) level programmes. In UG level courses candidates can do integrated law course, the eligibility for which is to pass 12^th class or equivalent examination from a recognized board. Candidates can also pursue three years LLB programme after graduation in any discipline. After completion of Undergraduate (UG) programme they can take admission in Postgraduate (PG) and specialize in Corporate Law. Apart from the degree programmes, candidates can also pursue diploma in this field. Some of the popular PG level courses in Corporate Law are:

• LLM in Corporate Law

• LLM in Business and Corporate Law

• LLM in Corporate and Commercial Law

• LLM in Corporate and Securities Law

• LLM in Corporate and Banking Law

• LLM in Corporate and Business Law

Career prospects in Corporate Law

Working as a corporate lawyer can be a highly rewarding and profitable career. Corporate Law is a relatively new field and there are ample career options available. At present, there are many top organizations employing legal professionals and that is why this discipline is a gateway to many career options for young law aspirants. Since this is a Law specialization, which focuses on corporates and corporations, a corporate lawyer can choose to represent all types of entities or may work for any one type of entity. This include companies, associations, joint ventures, sole proprietorships and even partnerships. The demand for corporate lawyers is in full swing, be it corporate governance or enterprise consulting corporations. With the relocation of international law firms to India, the scope for corporate lawyers has also increased significantly.

Difference Between Commercial Law and Corporate Law

We have highlighted the differences between Commercial Law and Corporate Law using specific parameters. The differences are mentioned below:

1. Focus and Purpose

The primary focus of commercial law is to regulate business transactions and ensure fairness in the marketplace. It provides guidelines for conducting trade, protecting consumers, and resolving disputes. Commercial law applies to both individuals and entities engaged in business and aims to create a balanced environment for commerce by promoting ethical standards and legal obligations.

Purpose of Commercial Law:

• To ensure that business transactions are carried out legally and fairly.
• To protect the rights of both businesses and consumers.
• To promote healthy competition in the marketplace.
• To provide remedies for breach of commercial agreements.

The main focus of corporate law is on the formation, management, and dissolution of companies. It ensures that corporations are structured and operated in compliance with the law, addressing issues related to corporate governance, shareholder rights, and regulatory obligations. Corporate law plays a critical role in fostering corporate responsibility and protecting the interests of stakeholders involved in a company.

Purpose of Corporate Law:

• To regulate the formation and governance of corporations.
• To ensure corporate transparency and accountability.
• To protect the rights of shareholders and other stakeholders.
• To manage mergers, acquisitions, and corporate restructuring.

2. Application in Real-Life Scenarios

Commercial law is applied in everyday business activities, such as:

• A business entering into a contract to buy goods from a supplier.
• A consumer making a purchase from a retailer and invoking consumer protection rights if the product is faulty.
• A company involved in a trade dispute with another entity over the terms of a sales agreement.

In essence, commercial law governs transactions between businesses, consumers, and entities, and is crucial for maintaining order in the marketplace.

Corporate law is applied in scenarios that involve the structure, management, and ownership of corporations, such as:

• The incorporation of a new company and the issuance of shares to investors.
• A company undergoing a merger or acquisition with another business.
• Shareholders exercising their rights during an annual general meeting to vote on important corporate matters.
• Directors and officers making decisions that affect the governance and strategy of the corporation, while complying with fiduciary duties.

Corporate law provides the framework for companies to operate legally and ethically within the corporate world.

3. Legal Enforcement and Remedies

In commercial law, disputes often arise from issues such as breach of contract, unfair trade practices, or violations of consumer rights. Remedies and enforcement can include:

• Damages: Financial compensation for losses suffered due to a breach of contract or unfair practices.
• Injunctions: Court orders to prevent businesses from engaging in unlawful activities.
• Rescission: Canceling contracts and restoring parties to their original positions.

In corporate law, legal issues often involve breaches of fiduciary duties, shareholder disputes, or regulatory non-compliance. Remedies and enforcement mechanisms include:

• Fines and penalties: For companies failing to comply with corporate regulations.
• Litigation: Shareholders or directors may file lawsuits to address governance issues.
• Corporate restructuring: In cases of financial distress or to improve efficiency, corporations may undergo restructuring or liquidation under legal supervision.

Common Entrance Exams for Commercial Law & Corporate Law

Even though there is huge difference between Corporate Law and Commercial Law, the process for admission to both is almost the same. For admission in both the courses you have to clear some important entrance exams. Such as:

• Common Law Admission Test (CLAT)

• All India Law Entrance Test (AILET)

• Law School Admission Test – India (LSAT India)

• Delhi University LLB Entrance Exam (DU LLB Entrance Exam)

• Maharashtra Common Entrance Test - Law

• Andhra Pradesh Law Common Entrance Test

• Symbiosis Law Admission Test

Corporate Law and Commercial Law both govern different aspects of companies and businesses. In such a situation, students must keep their interest and career aspirations in mind before choosing any one of these.