Commercial Act Definition and Meaning

To facilitate the understanding of the act of trade, it is necessary to review certain concepts. In principle, the notion of act can refer to an action or a celebration. The trade, moreover, is linked to the activity that people do in order to achieve certain goods which can not produce themselves; For this, it is necessary to interact with the respective producers and reach an agreement (exchange of goods for money).

Finally, a merchant is any person who has the capacity to exercise the act of mediator between various producers; This mediation is his profession and he assumes in it the responsibility generated by the relationship with each of his clients. In this task, the merchant receives some profit.

That said, we can define as an act of commerce, something belonging to the legal field that refers to the acquisition that is made, through the concretion of a payment, a product or the rights over it, with the aim of obtaining a subsequent profit. This profit may arise from the same state that the product had at the time of purchase or from some transformation that changed its value.

The legal use of the concept of commercial act is applied on movable things, that is, those that can be mobilized without changing its structure; its counterpart, real estate, are buildings or land.

The act of commerce is the legal act that distinguishes between cases that fall within the scope of commercial law and those proper to the civil branch. There are, however, mixed acts (with a double character).

The regulation of commercial acts depends on the regulations in force in each country. These rules are in charge of establishing the scope, capacity and competence of said acts, according to the corresponding procedures.

Different commercial acts

Many classifications can be established within commercial activities, they are made based on various criteria, which can be:

* Public or private: if the people involved in the act are taken into account. If it is carried out with direct control of the State, it will be public; otherwise, it will be private, which does not mean that the State does not protect the rights of each of the parties, but that it has no interests in said operation;

* Fluvial, terrestrial, marine or air: according to the means that the merchant uses to transport the product and the type of communication that exists between the parties;

* Wholesale or retail: depending on the volume of the product. For example: the merchant who runs a food business buys in large quantities from a supplier (wholesale) and then sells in small quantities to individuals (retail);

* Cash or credit: if the form of payment with which the exchange is made is taken into account. If the person who buys pays with money or a check, they are said to pay in cash (payment is made instantly) and if they do so with a credit card or promissory note, it will be on credit (payment will be made at the end of the month);

* Lawful or illicit: in accordance with the degree of compliance with current trade laws. If they are not respected, it is said to be illegal and if they do, it will be a lawful commercial act;

* Import or export: with respect to the place of origin of the product, either from the national territory or from abroad;

* Free or monopoly: if you take into account how many suppliers are on the market. If there is only one supplier, then we will face an act of monopoly; If there are many merchants offering the same product and competing in the market, it is said to be a free commercial act.

It is important that the participants in a commercial act have full capacity to exercise said commerce; it can be known if the law and the observance of it in the exchange are taken into account. In addition, according to the item in which it is being marketed, the characteristic requirements of said sector must be taken into account.

Commercial Act

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