Commercial law in Spain

Commercial law in Spain
Published on: 17 April 2017

Table of contents

Commercial law, also often referred to as commercial law, is one of the many branches of law. Its purpose is the regulation of the relationships that take place between persons and contracts, as well as the commercial actions carried out by them or by companies. Since it is a relatively complex area, in this article we would like to explain exactly what it consists of in simple words so that you can understand it better.

What is Commercial Law?

Commercial law, in addition to what we have already specified above, is part of what is known as private law. Specifically, it establishes the rules that are necessary to determine how commercial activities should be carried out within Spain and, in some cases, at an international level. In general, it has the problem of not having been able to keep up to date with the incessant advance of commercial relations, which means that some of the rules are slightly obsolete.

Although it may seem incredible, Commercial Law in Spain is marked by the provisions of the Commercial Code, which dates back to no less than 1885. It deals with vital aspects of this branch such as general and maritime commerce, as well as the special contracts related to them and the provisions related to statutes of limitations, bankruptcies and suspensions of payments.

What establishes Commercial Law in Spain?

The sources of Commercial Law in our country are established by a set of laws and rules, custom and jurisprudence based on the recognition of the freedom of enterprise and private property, rights that are available to any citizen. In fact, everyone can set up a business and maintain commercial relations with whomever they see fit.

For its part, it is the State that has the power to plan the country's economy, so it is up to the State to implement laws and rules that regulate the activities of citizens when it comes to setting up companies and carrying out commercial activities. However, since Spain joined the European Union, much of this decision-making power has been delegated to this body.

What are acts of commerce in Spain?

Acts of commerce are those that are carried out with the purpose of obtaining profits and generating wealth, both monetary and of any other type. Therefore, it is clear that this branch of law is constantly evolving as it needs to adapt to the specific needs of the market at any given time. Therefore, as we said a few paragraphs ago, it is quite striking, not to say shocking, that our current Commercial Code dates from 1885.

On the other hand, we cannot forget to mention that commercial law is responsible for determining the structure of the commercial organisation and for laying down all the rules that regulate activities. However, it is also clear that there is a close relationship between the economic development brought about by these activities and the decisions taken at the political and social level. This is mainly because the need to satisfy the needs of individuals plays a key role in the production and creation of goods and services.

What is a commercial contract?

The commercial contract has been gaining ground in the labour market. Specifically, it is a document that establishes a bilateral relationship between two legal or natural persons for the purpose of exchanging services in exchange for a pre-determined commission, price or remuneration. At first glance, it may seem similar to a normal contract, but this is not the case. To be valid, one party must be a freelancer and the other a company.

On the other hand, commercial contracts, unlike employment contracts, do not give the right to holidays, unemployment or benefits derived from the professional agreement to which the worker is subject. Therefore, except in the case of self-employed entrepreneurs who carry out their regular activity with other companies, they are not usually very advantageous.

In recent years, the commercial contract has been used as a 'rubbish contract', in many cases, in a flagrantly fraudulent way with the aim of taking advantage of people in desperate need of employment. In fact, there have been cases in which companies have dismissed, through the formulas established by a Temporary Redundancy Proceedings, a large part of their workforce and then hired them again through this formula.

For this reason, before proceeding to sign a commercial contract with a company, unless you have experience in the matter, it is best to seek advice from an office of the State Public Employment Service or, failing that, from a labour lawyer with experience in the matter. Undoubtedly, these are the two figures that can be of most help when it comes to resolving any question related to this subject.

Conclusions on Commercial Law in Spain

In short, Commercial Law and the rules derived from it are advancing, on the one hand, thanks to the obligations imposed by the development of the market and, on the other hand, to the requirements of the European Union. Given the considerable antiquity of the Commercial Code in force in our country, this task would be practically impossible. In fact, solutions for specific cases, such as those provided by commercial contracts not too long ago, have ended up becoming double-edged weapons which, in many cases, are used to the detriment of the worker.

Therefore, the only thing left to do is to trust in a gradual development and updating of the regulations in force in our country, which could give the definitive boost that autonomy needs without neglecting the rights of employees and self-employed workers. There is no doubt that commercial law, politics and society go hand in hand.

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