Those days were gone when sole proprietorship and partnership were the most preferable form of the business wherein the persons use to invest and earn profits out of the business for themselves. Though these form of businesses still exist but are not the most common form of business today as now the taste of the consumers has changed, technology has advanced manifold, etc., which require funds, huge funds and because of involvement of few persons in sole proprietorship or partnership this need of huge investment, production at large scale, etc, was not possible. So to fulfill these needs company form of business came into existence, as also with the time demand shifted from traditional goods to the capital goods and technological products, which require huge amount of labor and capital, supply of which was not the possible for a handful of persons.
Commercial law, also known as business law or corporate law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. It is often considered to be a branch of civil law and deals with issues of both private law and public law. Commercial law includes within its compass such titles as principal and agent, carriage by land and sea, merchant shipping, guarantee, marine, fire, life, and accident insurance, bills of exchange and partnership. It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods Many countries have adopted civil codes that contain comprehensive statements of their commercial law.