Commercial Litigation Lawyer

Commercial Litigation Lawyer

In today’s world, due to the expansion of domestic and international commercial activities, disputes arising from such relationships are increasing accordingly. Since practice in this field requires specialized legal expertise, it is essential to benefit from the services of a commercial litigation lawyer in order to prevent irreparable losses. Therefore, it is strongly recommended that no action be taken in commercial matters without consulting a lawyer specialized in commercial disputes.

Most large companies consider engaging a lawyer for corporate affairs a necessity. Alongside a managerial system that is required for the administration of companies and commercial activities, comprehensive knowledge of commercial law can prevent future problems and provide an effective path for the proper development of business operations.

In commercial disputes, the primary objective is usually the application of commercial laws to the matter at hand, and many such disputes arise from commercial contracts. A competent commercial litigation lawyer can often spare the client the need to resort to court proceedings and the involvement in complex litigation. It should be noted that the most important aspect of establishing a legal relationship is drafting a well-structured, standard contract.

Services of a Commercial Litigation Lawyer

Providing legal consultation and accepting legal representation in commercial litigation, including the initiation and defense of all types of commercial claims, such as:

• Legal consultation in the establishment of various types of commercial companies.
• Legal consultation in drafting articles of association and partnership agreements.
• Legal consultation for managers of commercial companies.
• Initiating and defending claims relating to commercial companies, including bankruptcy, dissolution, and invalidation of corporate resolutions.
• Recovery of claims arising from all types of commercial instruments, as well as other disputes and matters relating to merchants, companies, and commercial operations, which are handled through the office of a commercial litigation lawyer.

Scope of Practice of a Commercial Litigation Lawyer

Commercial disputes, as the term suggests, involve merchants. Therefore, it is first necessary to define the term ‘merchant’. Pursuant to Article 1 of the Iranian Commercial Code, a merchant is a person whose ordinary occupation consists of commercial transactions. In simpler terms, a person is considered a merchant when their principal and customary profession involves conducting commercial dealings.

This raises the question of who may be regarded as a merchant and whether there is any distinction between natural and legal persons in this respect.

In response, it should be noted that the Commercial Code makes no distinction between natural persons and legal entities in recognizing merchant status. Both natural and legal persons may be considered merchants, provided that they meet the conditions set out in Article 1 of the Commercial Code.

Based on this definition, a merchant must personally conduct commercial transactions as their ordinary occupation in order to be recognized as such. Accordingly, a person who merely acts as an agent or representative on behalf of another in conducting commercial transactions is not considered a merchant. For example, a worker who performs transactions for an employer, or a company manager who conducts transactions on behalf of a company, is not personally deemed a merchant. However, in certain cases, legal entities, such as joint stock companies, whether public or private, are recognized by law as merchants under Article 2 of the Amendment to the Commercial Code, even if they do not engage in commercial transactions.

The recognition or non-recognition of a person, whether natural or legal, as a merchant carries significant legal consequences, including the imposition of specific obligations and liabilities. For instance, merchants are not entitled to apply for insolvency on the basis of inability to pay debts and must instead seek a declaration of bankruptcy. They are also required to maintain statutory commercial books and present them to competent authorities, including tax authorities, and in certain cases are obliged to obtain specific licenses for their activities.

Therefore, in every commercial dispute, the first point of consideration must be whether the opposing party is to be legally recognized as a merchant. In some cases, it may be necessary to prove the opposing party’s merchant status as part of the legal strategy. In other instances, members of a board of directors or managing directors of a commercial company are mistakenly named as defendants, whereas they merely represent the company. Any claim relating to a company must be brought against the company itself, not against its representatives. Further detailed explanations will be provided for each specific type of commercial company dispute.

Frequently Asked Questions About Commercial Litigation Lawyers