Regulations on business law that any entrepreneur should know
Every business must be protected from risks, and this depends mainly on understanding the legal consequences involved in carrying out its activity in the territory of a particular state. With the development of the online environment, it is much easier to interact and especially to sell anywhere both locally and internationally.
With the benefits of the online environment, there is a heightened need for well-trained entrepreneurs. They must ensure that they conduct their business in accordance with the laws, rules, and regulations of the countries in which they intend to operate.
Anyone can open a business, but not everyone can keep it open. An essential step in entrepreneurship education is a general understanding of business law. The basic concepts of business law are the basic foundation of any business.
No matter what kind of business you want, there are six basic concepts in business law that any entrepreneur should know and understand, for the smooth running of the business.
Essential Concept 1: Intellectual Property
Intellectual property is an idea proposed for the development of products and/or services that will be offered further to customers for sale and which will generate revenue. In the category of intellectual property, we can include products, services, inventions, trade names, or trademarks.
What is the purpose of intellectual property registration?
The registration of the intellectual property is the way in which an entrepreneur protects himself against “theft” or its violation by third parties. Registration involves a procedure for filing the patent, copyright, or trademark applications with a specialized authority.
Essential Concept 2: Concluding a contract.
What are the elements necessary for the conclusion of a contract or a business agreement? The main instrument through which a company operates in the contract and its conclusion covers two important moments: the demand and the offer.
We identify a first moment and three initial requirements to be in front of the conclusion of a contract:
-Requirement no. 1: The clear intention to contract from the tenderer.
-Requirement no. 2: The terms of the offer must be specific.
-Requirement no. 3: The offer must be communicated in a certain form or in a certain way.
The second moment is the acceptance of the offer and represents any manifestation by which the agreement regarding the offer is doubtless offered. Requirements to determine whether or not we are accepting an offer:
-Requirement no. 1: The clear intention to accept the offer.
-Requirement no. 2: The clear intention to accept the terms.
-Requirement no. 3: The tenderer’s communication about the acceptance of the offer.
If both parties go through all these stages, then we are facing a contract.
Essential Concept 3: Accountability.
What is the responsibility of entrepreneurial activity?
During the commercial activity, it is possible to attract the liability of the legal person for defective products, delays in the delivery of services, or other various reasons. This liability can be divided generically into two categories:
Civil liability, such as the warranty for a product. Thus, for the failure of the seller’s promises on the product sold or the services offered, he can be civilly liable, therefore, only by paying money or repairing the product or replacing it, to cover those damages. Any possible injury may be required to be covered only within a time frame. This time limitation is called prescription, and the general limit is three years, for most cases.
Criminal liability can derive, for example, from the personal injury of a person as a result of the failure of a product. Criminal liability situations are not uncommon and are limited to certain narrower situations.
Essential concept 4: Payment tools
What are cashless payment instruments?
Payment instruments are a means of transferring funds held in open accounts either to private institutions, such as banks or to public institutions, such as the State Treasury, as a result of payment instructions. The most common payment instruments are the check, exchange, and the order note.
Essential concept 5: Sales contract and service contract.
The most common contracts in the activity of commercial companies are the sales contract and the service contract. The central elements of any sales or service contract are:
-The price must be specified, as it can also be variable, not necessarily fixed.
-The object of the contract must be specific and well defined.
-The term of performance of the contract must be set to have a time limit on the fulfillment of the conditions of the contract.
-Obligations of the parties.
-Method of transmitting notifications.
-Applicable law.
Essential concept 6: Associate’s liability in a limited liability company.
The most common form of society is a limited liability. The limited liability company has an essential characteristic; namely, the associations respond within the limit of their share capital.
Can their responsibility be drawn beyond the limit of the share capital? Can they be responsible for business transactions?
Generally, the associates will be protected from the commercial debts of the company within the limit of the registered capital. Any associate or administrator shall be held liable for unlawful acts, fraudulent, or criminal acts committed against other persons or entities. Beyond this situation, it remains to analyze the liability for the commercial debts accumulated by a company beyond the fraudulent acts, and in case these debts cannot be covered by the assets of the company.