Commercial Law Transactions

Renad mohammed 3161

 Introduction
• Commercial law is known as the law branch that is concerned with the duties and rights that
emerge from the supply of services and goods.
• The law is constantly developing and changing.
• It was introduced by the jurists of Latin Arab who distinguish between commercial, mixed,
and civil transactions.
• Commercial law is enlarged as there are transactions that need to be professionally practiced
to be known as commercial.
• In the Middle East ages, the law did not serve as commercial transactions nature.
• Bahraini law adopted both personal and material theory.
 Commercial Law
• Commercial law is known as the body of law that maintains and regulates the individuals,
businesses, and merchants conduct who are engaged in sales, commerce, and trades.
• It is also named business law and it is the enlarged area of law that interrelates with various
other areas like real estate, safety laws, and environmental regulation (HG, 2020).
• Commercial law mainly deals with tort and contract laws.
• It includes issues that can arise in the starting and running of any business or Company at
any commercial-stage cycle.
 Scope
• Commercial law governs trade between consumers and businesses.
• It makes a regulated system that is effective and fair for not only one party but both parties
so the trade can be directed appropriately.
• It emphasizes the other aspects of the firm, including mergers, acquisitions, property issues,
shareholders' rights.
• Each state is free to make its own amendments and modifications related to UCC, and it is
essential to hire a lawyer who is familiar with the law (FindLaw, 2016).
• The laws of state cover areas related to insurance and taxes.
Receiving Ownership of Commercial Firm
• A firm memorandum association can provide for its continuation with the heirs of the
deceased partner, even if some or all of these are minors.
• Minor has the right to vote and it depends on the share proportion within the Company.
• The minor can enjoy the company benefits without being liable for the Company issues that
can encounter (EDB, 2020).
• Amendments to the Bahrain Commercial Companies Law, the approach increased the
minority shareholders' chance to be represented in the Company.
 Obtaining Traders Character
• Under the section of the case, the fundamental points are the welfare
and interests of the minor that relates to the trade, welfare, and the
minor happiness, or the moral and ethical considerations related to the
minor.
• The property dispositions can be detrimental or profitable if it is of
minor interests (Albasmelter, 2020).
• There cannot be any claim of annulment if the act is ratified by the
minor about receiving legal age by his guardian or by the Minors Real
Estate Guardianship that can be in association with the law.
• Minors don’t have the right to open their brokerage account and friends
and family can assist them to set the guardian accounts and when the
minor began to earn income, the account can be opened.
 Authorization of Commercial Agency
• The commercial agent is defined by regulation as self-employed who has the
authority to negotiate the purchase or sales of goods on the principal behalf or
conclude transactions based on that principle (TRADE, 2020).
• Different elements should be considered when identifying whether the agent
will be the commercial agent or not.
• It is essential to note that the commercial agent can buy or sell goods or
services on the principal behalf.
• An agent who concludes a single transaction and is authorized on the
principal’s behalf is not someone who has continuing authority for the
purposes of the regulations.
 Continued
• The 1992 Commercial agency law of Bahrain is based on the legislation that governs relationships in
Bahrain.
• The agency law permits foreign parties to distribute or sell their commodities and products in Bahrain
through different agents, fully filling the desire or need to establish and maintain the local presence (Al-
Araibi, 2019).
• The economic growth in Bahrain has resulted in the making of the market and increased worldwide demands.
• The implementing regulations and agency law apply to the registered agent or distributorship agreements.
• All the agreements of the commercial agency should be registered with the agencies for the Companies
affairs.
 Liberal Professions
• A liberal profession is based on the occupation maintained in association with the public
service ideal and requires the proper master of skills and the sciences liberal arts which
cannot be deputized to assistants.
• For example, the doctors who treat the patients in small clinics are based on civil action.
• The doctor establishes the hospitals and this is the commercial activity in which the
commercial act or law is applied or applicable.
• The legal individual can be considered as a trader if practice commercial activities
regardless of any form if the Company takes and take the forms that are stipulated regardless
of the object.
 Discussions and Summary
• Based on the above questions, it is analyzed that the commercial law transactions play an
essential role in Bahrain.
• Bahraini law assumes that the entities that are made by the authorized employees have been
made with proper consent and knowledge.
• The file shows that the minor can take ownership but cannot perform duties until reaching
18 years of age.
• The Bahraini law allows the relevant documents and banks and keeps the original copies for
at least two years.
• A trader can perform commercial activities and is subjected to restrictions based on political
and social considerations.
 Conclusion
• It is concluded that Bahraini commercial law is discussed along with the scope and its
importance.
• The requirements related to the minor and its ownership is discussed.
• The minor related laws are described under different sections.
• The guardian is entitled to the trader's character but the minor is not entitled to.
• The Bahrain commercial agency is described and their related roles according to the agent
are described and analyzed.
• The liberal professions subjection to the commercial law is given with proper examples.
 References

• Al-Araibi, M. S. (2019, October). The Legal Landscape for Commercial Agencies in

Bahrain. Retrieved from tamimi: https://www.tamimi.com/law-update-articles/the-legal-
landscape-for-commercial-agencies-in-bahrain/
• Albasmelter. (2020). The Bahrain Civil & Commercial Procedures Act. Retrieved from
albasmelter:
https://www.albasmelter.com/Procurement/pdf/BahrainCivilCommercialProceduresAct1.pdf
• EDB. (2020). Commercial Companies Law. Retrieved from bahrainbusinesslaws:
https://bahrainbusinesslaws.com/laws/Commercial-Companies-Law
• FindLaw. (2016, June 20). What is Business and Commercial Law? Retrieved from findlaw:
https://www.findlaw.com/hirealawyer/choosing-the-right-