Trade deals – definiion
Trade deals definition:Trade deal is a type of transaction that possess all its typical generic features. A commercial (trade) deal is a legal fact with the main element being the will of one or more persons, aimed at achieving certain legal consequences. The legal criteria for determining which deal is a trade one are related to the peculiarities of the transactions themselves on the one hand, and on the other hand to the qualities of the persons who perform it.
Continental law has two systems for defining a deal as trade. On the one hand, it is an objective system – the peculiarities of the deal make the person a trader. On the other hand, it is a subjective system – the execution of a deal by a trader makes it trade.
Deal is a basic concept in law. A trade deal is a type of transaction and for this reason it has all the hallmarks of transactions in general.
A trade deal, like any other transaction, can be defined as a legal fact. A key element of a commercial deal is its focus on achieving the desired legal consequences.
Commercial (trade) deals are subject to the classification criteria of deals, but several features should be taken into account:
- There are no gratuitous deals in commercial law. The principle “I give to give” always works. This also applies to sponsorship – it is a remunerative deal, because there is a consideration, expressed in advertising.
- The division of trade deals into unilateral and bilateral is extremely important. Here the criterion for distinguishing is whether one of the parties is a trader or both parties are traders.
- The special rules of commercial law shall apply to trade deals in deviation from the general civil law regime of transactions. The rules of civil law are also applied to trade deals. But the principle is that the special norms of the Commercial Law repeal the effect of the general civil law norms.
- Trade deals are generally concluded in the same way as deals in civil law. The statements of intent of each of the parties must be objectified, and in case of a contract there must be an agreement. The moment of concluding deals is considered to be the moment of obtaining the consent of the other party to the transaction.
Classification of trade deals according to different criteria:
- According to economic criteria they are:
– deals directly servicing the exchange process, they cover “trade” in the economic sense of the term deals;
– deals servicing the process of circulation, trade deals in increments, e.g. insurance deals;
– deals made in the production process.
- The legal criteria are related to the peculiarities of the deals themselves, on the one hand. And on the other hand – to the qualities of the persons who perform them. Continental law has two systems for defining deals as trade:
– objective system – the features of the deal make the person a trader;
– subjective system – the performance of a certain type of deal by a trader makes it a trade.
- The Commercial Law of the Republic of Bulgaria regulates the following types of commercial deals.
- Absolute (objective), basic trade deals. The peculiarity of them is that these transactions are so strongly entrepreneurial in nature. Their focus on profit is so strong that they are always a trade, regardless of who performs them and regardless of whether they are concluded by occupation or individually. Such deals are:
A /. Commercial sale;
B /. Mandate deals;
C/. Banking and foreign exchange deals.
D /. Deals on services;
E/ .Deals with intellectual property – cover licensing and impresario transactions.
F/. Promissory note, bill of exchange and checks.
- Additional (accessory), secondary, derivative trade deals – they do not have a strong trade character. These are all deals related to the exercise of the trader’s occupation. They are trade deals because they are made by a trader.
- Another division of commercial deals depends on the quality of the parties:
– if both parties are traders we have a bilateral trade deal;
– if for one of the parties a deal is not a trade there is a unilateral trade deal.