Commercial litigation can be complex and filled with unfamiliar terminology. To help demystify the process of filing a commercial litigation claim, we’ve compiled a list of the most frequently used commercial litigation terms. Read over the terms and, if you still have questions or would like to file a claim, contact the experienced commercial litigation lawyers at the Law Offices of Colby Lewis.
Glossary of Commercial Litigation Terms
Here are some of the most frequently encountered commercial litigation terms and their definitions:
- Commercial law
- Commercial litigation attorney
- UCC
- Contract
- Clause
- Commercial transaction
- Hold harmless clause
- Piercing the corporate veil
- Corporate governance
- Specific performance
- Alternative dispute resolution
- Arbitration
- Mediation
Let’s take a closer look at each term and discover how these terms affect your business transactions.
Commercial law is the body of law that governs business and trade between organizations and individuals engaged in business. It encompasses a broad range of activities in several different areas, including contract law.
When you have issues with a commercial transaction, you need a commercial litigation attorney at your side. A commercial litigation attorney can help you with any aspect of a business transaction, from contract formation to performance. They can help you recover damages from another party and protect your interests in negotiations.
The Uniform Commercial Code (UCC) is a body of law that covers all commercial transactions. Instead of being a federal law, it is a uniformly adopted state law. It helps to standardize the interstate transaction of business.
A contract is an agreement between two or more parties where consideration is exchanged. It lists the duties and responsibilities of the parties as well as repercussions for not adhering to the contact terms. In some cases, such as commercial transactions, the contract can be written or verbal. A written contract is preferred, as it is easier to enforce.
Consideration is a promise, performance or forbearance bargained for by one part in exchange for a promise. An example of consideration would be if Jane promised to sell Bob an apple in exchange for $1. In that example, the parties have made a promise of $1 for the performance of giving Jane the apple.
A clause is a particular and separate part of a contract that outlines a definition, action or consequence. Oftentimes, these clauses are numbered or otherwise distinctly identified. An attorney will be able to evaluate your contract clause-by-clause to determine if any breaches have occurred.
A commercial transaction is one where some form of payment is promised in exchange for a good or service. A commercial transaction can occur between businesses, between a business and an individual, a business and a government entity or any combination. Commercial transactions are governed by the UCC.
A breach of contract occurs when one party to a contract fails to uphold a promise made in a valid contract. When a breach of contract occurs, the required remedy may be to bring a lawsuit in court or the contract may specify alternative dispute resolution. Any party to the contract can sue any other party for breach.
A hold harmless clause is a portion of a contract that states that the parties agree to not hold each other responsible for any damages, losses or legal liability. This is also known as an indemnity clause. The clause limits the damages that an aggrieved party can recover. However, if the defendant doesn’t comply with safety and procedural requirements, the indemnity clause may be overcome by evidence. For example, a business that is aware of dangerous conditions and does nothing to remedy it may be held liable for damages resulting from their negligence.
Piercing the corporate veil is a term of art that refers to a court’s decision to allow a creditor to directly enforce its claim against one of the corporation’s shareholders. Typically, the corporation is seen as having a separate existence from its shareholders, so creditors are unable to attach debt to them. When you “pierce the corporate veil” you are puncturing the barrier of protection that shareholders usually enjoy.
Corporate governance refers to the framework of rules and practices that governs the administration and control of a corporation. Corporate governance rules may be applied to identify misdeeds or omissions by those in control of the corporation, such as negligence in handling business matters.
When someone sues for specific performance, they are asking the court to compel a party to the contract to fulfill their contracted promise of performance.
Another term you may see is alternative dispute resolution. This umbrella term describes the framework for negotiating a resolution outside of court. Alternative dispute resolution may or may not be required as part of a contract.
There are two types of alternative dispute resolution: arbitration and mediation. Arbitration is an out-of-court process where one or more arbitrators make a binding decision on the dispute. Mediation, on the other hand, is when a neutral and impartial mediator assists the parties in negotiating a resolution to their dispute. Mediation, unlike arbitration, is not binding on the parties.
While this is not an exhaustive list of commercial litigation terms, it should give you a groundwork for understanding the majority of commercial transactions.
Protect Your Interests With Commercial Litigation Lawyer Colby Lewis
Commercial litigation is full of twists and turns that take expertise to navigate effectively. At the Law Offices of Colby Lewis, we know how to fight for your interests. We’ve handled many commercial litigation cases, giving us the knowledge and real world experience necessary to present the best possible representation of your case.
To find out whether you have a valid claim, contact the trusted commercial litigation lawyer Colby Lewis to protect your interests – contact us today for a full case evaluation.
