Business Lawyers Marylebone

Corporate law (also known as company law) covers the legal issues associated with company formation, structure, operation, management and governance.

Common corporate law legal areas include the buying and selling of a company or business, company incorporation, mergers and acquisitions, investment and funding, debt finance, equity funding, shareholder rights, and management buy-outs.

Commercial law also deals with legal issues associated with companies, although it focuses more on issues arising from day-to-day business and commercial transactions.

Areas that are covered within commercial law include contracts, employment, intellectual property, sale of goods and services, and consumer protection.

There are four main company structures for businesses in the UK:

• Sole trader. A sole trader is considered to be self-employed. A sole trader is responsible for running their business, meeting the legal requirements, and is liable for all debts.
• Partnership. This is a business owned and operated by two or more individuals who share responsibility for the profits and losses of their business.
• Limited Liability Partnership (LLP). This form of partnership structure shields partners’ personal assets from business debts, provided they comply with their statutory duties and do not engage in misconduct.
• Limited company (Ltd). A private company incorporated and limited by shares. The shareholders’ liability to creditors of the company is limited to the amount they originally invested.

Read more about incorporating a limited company in England and Wales by clicking here.

A commercial contract is a legally binding agreement between different parties engaging in a business transaction.

Key terms that should be included in a commercial contract include:

• Names of the parties.
• Duration of the agreement.
• Scope of the agreement.
• Payment terms.
• Termination conditions.
• Liability and indemnity.
• Dispute resolution information.
• Confidentiality clauses.
• Governing law and jurisdiction clauses.
• Force majeure provisions.

These are commonly expected in professionally drafted contracts, especially in cross-border or high-value arrangements.

A breach of contract occurs when a party to a valid contract fails to fulfil their obligations under that agreement.

Examples of contract breaches could include failure to deliver goods or services on time, poor quality of work, or non-payment.

Yes, a verbal agreement can be legally binding in the UK as long as it meets the criteria for a valid contract.

To be considered legally binding, a verbal agreement must include a valid offer and acceptance, the intention to create legal relations, and consideration (something of value exchanged between the parties).

Proving the existence and terms of a verbal agreement can be more difficult than a written contract.