NOTIONS OF COMMERCIAL LAW

1. Trade Acts Commercial acts are those legal acts executed by natural or legal persons, merchants or not, that produce legal effects regulated by commercial law. The Commercial Code states which are the commercial acts contemplated by law.

1.1. Some examples: Supply and supply companies; Construction companies, and public and private works; The companies of factories and manufactures; The companies that transport people or things, by land or by water; and tourism companies;

2. Public Registry of Commerce The Public Registry of Commerce is an institution that cannot be dispensed with in Commercial Law, since merchants are obliged to register the documents that must be made notorious, such as the articles of incorporation in the case of commercial companies, some kinds of contracts and other commercial acts in the cases established by law.

3. Commercial contracts Commercial contracts are the agreements that produce or transfer obligations and rights of a commercial nature. Among the commercial contracts regulated by the provisions of a commercial nature we find: agency, assignment of commercial credits, commercial commission, commercial concession, commercial consignment, commercial sale, commercial exchange, various insurance contracts, various transport contracts, etc.

4. Electronic Commerce Electronic, optical or any other technology means may be used in commercial acts and in their formation. In the acts of electronic commerce, the provisions of the Commercial Code shall apply, in addition to the provisions of the International Treaties to which Mexico is a party.

5. Commercial Companies Commercial Companies are recognized as legal entities, subjects of law with their own legal capacity, assets, name, domicile and nationality, other than the person of the partners that comprise it.

5.1. Commercial Companies recognized by the General Law of Commercial Companies are: the Company in Collective Name; the Simple Limited Partnership; Limited responsibility society; the Stock Company.

6. Irregular Societies Irregular companies are those that do not meet the requirements of the law regarding their constitution and operation. For example, those that are not recorded in the articles of incorporation, that have not been established before a notary public or that the deed is not registered in the Public Registry of Commerce.

7. Titles and Credit Operations The credit titles recognized by law are: the promissory note, the bill of exchange, the check, the certificate of deposit and the pledge bond. The credit titles are acts of commerce, commercial things and are the necessary documents to exercise the literal right that is consigned in them. This literal right refers to the right and obligation contained in the text of the document.

8. It is defined as the set of legal norms that regulate people, relationships, acts and things that have to do with trade.

9. Applicable Provisions In Mexico, commercial acts are regulated by the Commercial Code and other commercial laws and in the absence of provisions in these laws, the provisions contained in the Federal Civil Code will be applicable.

9.1. Some of these commercial laws are: Foreign Trade Law; Commercial Bankruptcy Law; Credit Institutions Law; General Law of Commercial Companies; General Law of Titles and Credit Operations; Law on the Insurance Contract, among others.

10. Merchants According to the Commercial Code, both individuals and legal entities are considered merchants with the following considerations: Persons who, according to the law, have the capacity to contract and be bound, who make commerce their ordinary occupation and who are not expressly prohibited by the law from the profession of commerce. Companies incorporated in accordance with commercial laws. Foreign companies, their agencies and branches, that carry out commercial acts in Mexico.

10.1. merchants are those individuals or corporations who make trading their usual profession.

11. The merchants have legal obligations: to register in the Public Registry of Commerce the documents whose authenticity must be known; maintain an accounting system; and keep the correspondence related to the merchant business.

12. Commercial Bankruptcy Through the commercial bankruptcy procedure, the merchant who has breached his payment obligations to two or more different creditors is declared bankrupt under the conditions provided in the Commercial Bankruptcy Law. The commercial bankruptcy procedure can be requested by: the merchant himself, the creditor or the Public Ministry.