Business Law

The Uniform Commercial Code (UCC): A Complete Guide to America’s Commercial Law Framework The Uniform Commercial Code (UCC) is one of the most important bodies of commercial law in the United States. It provides a largely standardized set of rules governing many everyday business transactions, including the sale of goods, Read more

What Is Commercial Law? A Complete Guide to the Law of Business Transactions Introduction Every day, businesses buy and sell goods, borrow money, accept payments, lease equipment, ship products, extend credit, secure loans, issue checks, transfer funds, and enter contracts with customers and other businesses. All of these activities create Read more

Partnership Dissolution and Winding Up: How a Partnership Comes to an End Introduction A partnership does not necessarily end the moment the partners decide to stop doing business. The law generally distinguishes between dissolution and winding up. That distinction is essential. Dissolution is the event that begins the process of Read more

Partnership Property: Ownership, Use, Control, and Transfer of Property in a Partnership Introduction A partnership is not simply a group of people doing business together. It is a legal relationship that can involve money, equipment, real estate, intellectual property, inventory, contracts, accounts, and other valuable assets. That creates an important Read more

Vicarious Liability in Business Relationships: When One Person or Company Is Liable for Another’s Conduct Introduction Business relationships often involve one person acting on behalf of another. An employee acts for an employer. An agent acts for a principal. A salesperson represents a company. A manager supervises employees. A contractor Read more

Employer and Employee vs. Principal and Agent: Understanding the Legal Difference Introduction The terms employer and employee and principal and agent are often used as though they describe the same legal relationship. They do not. The relationships can overlap, but they answer different legal questions. An employer-employee relationship primarily concerns Read more

Ratification in Agency Law: How Principals Approve Unauthorized Acts Introduction Agency law normally assumes that an agent acts within the authority given by a principal. But business relationships are not always so orderly. An employee may sign a contract without obtaining required approval. A manager may exceed a spending limit. Read more

Actual Authority vs. Apparent Authority: Understanding the Difference in Agency Law Introduction One of the most important questions in agency law is whether an agent has the legal power to act for a principal. A sales representative signs a contract. A manager negotiates a purchase. A corporate officer makes a Read more

Principal and Agent: Roles, Authority, Duties, and Legal Responsibility Introduction Modern business rarely operates through one person doing everything personally. Owners hire managers. Companies authorize employees to negotiate contracts. Businesses use brokers, sales representatives, attorneys, accountants, real estate professionals, and other intermediaries. In each situation, one person or entity may Read more