Basic Concepts of Business Law that Are Crucial To Your Business
Are you an owner of a small enterprise? If yes, then you must be aware of the legal aspects of running a venture. Internet marketing has made business possible for everyone throughout the world; it is also good to understand the rules and regulations of doing business. As an entrepreneur, you don’t necessarily need a degree in business, but it is advisable to take some business courses. By taking these courses, will enable you to have some knowledge of what it takes to run a successful venture. A successful business owner is that who has the basic understanding of business law, which might include many aspects in your business, such as loans, contracts, intellectual property and more. To even start a business, you have to understand its basic concepts. Here are the basic concepts of business law that you should understand-
Concept 1- What is intellectual property?
It is defined as the idea that comes up with to develop products that will be offered to the customers to sell and generating income for the individual. Products & services, trademarks, including inventions constitute the intellectual property. It is vital for the businesses to protect their intellectual property from being infringed by the 3rd parties. An entrepreneur will be able to protect their intellectual property by filing requests for patents, or trademark with their local government.
Concept 2 - What is product liability?
If a customer sues an enterprise for a defective product that caused harm to the customer in any way. Several theories regarding the recovery under this concept are contract theories and Tort theories.
The contract theories deal with the promises of the nature of the product sold and with the product warranty. These are the civil warranty cases in which the plaintiff claims that the product didn’t live up to the expectations of the seller. Tort theories usually deal with the plaintiff complaining that the defendant’s negligence caused monetary loss or any emotional harm to the plaintiff.
Concept 3- What does business contracts or agreements require?
The key function of a contract is that it is a set of a single or multiple promises which is enforced by the law. The key components of any agreement are the acceptance as well as the offer. The individual who makes the offer is known as the offeror, and the offer which is made to is known as the offeree.
Concept 4- What are the sales contracts?
The sales contract usually involve the sale of goods involving the ownership of personal property being transferred instead of other goods or services. As we all know, when it comes to money and finance, it's always very important to do things correctly and carefully. Here are a few essential terms for any sales contract-
- The cost terms must be spelled out, and the terms of price don’t have to be fixed.
- The contract should state that how the products will be delivered.
- The quantity terms have to spell out how many products will be bought by the buyer and how much the seller will charge.
These are just a few concepts of the business law that a business owner should have a little understanding about. In addition, it is also necessary to educate yourself regarding the necessary regulations pertaining to running a small venture. A good attorney can help you on these aspects.