We have all heard of commercial law and corporate law, and more often than not, those terms are used interchangeably. There are, however, quite a few contrasts between the two areas of practice, and the more we study law, the easiest it is to see the major differences.
First, it is interesting to address how Corporate and Commercial law can be similar. The practices work with business planning and operations, and many lawyers in Calgary will take cases from both areas mutually.
In other words, both terms overlap with each other constantly, and corporate lawyers are often, as well, commercial lawyers. They work directly with business managers and owners and can provide legal advice regarding the company’s activities. To be able to properly address matters such as those, the commercial and Corporate Lawyer Calgary needs to know their surroundings.
Commercial Law
When it comes to the daily operations of a company, a commercial lawyer is essential. They handle mainly issues that arise from the very core of the operations of a business.
The commercial lawyer, instead of having a broad view of the entire market, will focus on having a detailed analysis of the company they are working for.
What it means is that they will be the number one source for advice when a business owner is in need, as the kind of cases that they take are much more present on a day-to-day basis than their corporate peers.
Naturally, a business must have a head office, and the property used as such is also under the speciality of a commercial lawyer. Regardless of if the owners are going to buy or rent the property, the place itself must be permitted to hold commercial operations, and the paperwork of it is something the commercial lawyer will have to guarantee.
Moreso, a company also cannot run without workers. When it comes to employment, the commercial lawyer will be able to provide all documents regarding hiring and firing employees and will help the business owner to elaborate a code of conduct with all rights and responsibilities of people in the workplace.
The commercial lawyer will take on those cases on behalf of the company, and represent their interests in court—or, more commonly, arrange a settlement before the claim reaches any trials. They can also work the other way around and be the ones to take the business’ claims against others to the court if so needed.
Corporate Law
Corporate Law deals with the company as such an entity, handling major operations that will involve a lot of business strategy and knowledge of the market but they will also take an expressive role regarding M&A and Regulatory Compliance.
Just imagine a business that wishes to merge with another: there is a lot to analyse beforehand. The lawyer—but most commonly, the team of lawyers—will have to go through all documentation regarding the company’s finances, the shareholders’ interests, insurance, contracts, property, and so on until they can see the big picture and how merging would impact it.
They will provide advice on whether or not it is wise to continue with such an operation, or what still needs to be done before it is concluded. They will follow through the steps of the M&A from beginning to end, and it takes a lot of time.
It is not unusual for a business to change its operation model, and sometimes this change can lead to disastrous outcomes if done poorly. A corporate lawyer will serve to assist the business owner with this switch in activities, providing all legal knowledge to guarantee that they do not stray away from the law.
This particular practice of corporate lawyers is essential when dealing with franchised or multiple-office companies. It also provides a guide to the owners and shareholders to keep track of where they are putting their money.
So, What’s the Difference?
The first will look at everything that makes the company work, from employees to contracts to sales, the latter will take the finished product and present it to the world, advocating for its best interest as an entity.
The bottom line is this: When a business owner needs to solve an issue that comes from within the company, they should call a commercial lawyer.
