Commercial law Essay Example | Topics and Well Written Essays - 2000 words - 6

Commercial law - Essay Example This explains the reasons why people in commercial undertakings consult legal minds2 on various ways through which they secure themselves as well as their businesses from unwarranted losses. In this case, protection takes different formats. The aim of taking protection measures is to make sure that the commercial person gets particular property and rights that will offer enough compensation to him or her just in case another member in the transaction fails in the obligations assigned to him or her by the contract for any reason. For instance, Arthur agreed to sell to David who resides in Paris five thousand tones of unrefined sugar imported from Jamaica. The fear in this context comes in two perspectives3. First Arthur would fear that David could not pay his money either in full, not all, or delay the payment. This is from the viewpoint of the supplier4. The second fear pertains to the receiver. David would fear that Arthur would fail to supply the right quality of sugar, pack less quantity, delay delivery, or fail to deliver completely5. The right ways of taking security including the receiver withholding payment until reception of the goods is one of the alternatives available to the receiver. On the other hand, the supplier would ask for payment before making any deliveries to take of uncertain eventualities6. To safeguard his rights, Arthur could stipulate in the contract that he remains the absolute owner of the sugar until payment is cleared. In case, Arthur has more needs for the money he could stipulate that the money goes to a specific agency before delivering the sugar to David7. However, in this case, David is one the receiving end because he was the receiver who received sugar8 outside the agreed time to a level that the market price is now half the officially estimated one. If one follows proper restructuring, trusts are the best means by which participants in commercial enterprises can take security. First, trusts work in dealings