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Contract & Commercial Law vocabulary · Companies & Partnerships

Company

Meaning in contract & commercial law, with examples

/ˈkʌmpəni/nounCore term

In contract & commercial law, company means: A business organisation registered as a separate legal person, so it can own property, sign contracts and sue or be sued in its own name.

In Turkish: şirket, ortaklık

How it is used

In legal texts 'company' usually means an incorporated company with limited liability. UK company names end in 'Ltd' (private) or 'plc' (public); US firms use 'Inc.', 'Corp.' or 'LLC'. Americans often say 'corporation' where the British say 'company'.

Example sentences

  1. The contract is signed by the company, not by the directors personally.

  2. They set up a company in the Netherlands to hold the trademarks.

Common collocations

  • set up a company
  • private company
  • public company
  • holding company
  • company law
  • shareholderA person or company that owns shares in a company and therefore owns part of it, usually with rights to vote and to receive dividends.
  • directorA person appointed to manage a company and make major decisions on its behalf, usually as a member of the board of directors.
  • limited liability companyA company whose owners are responsible for its debts only up to the amount they have invested, so their personal assets are protected.
  • subsidiaryA company that is controlled by another company, usually because the other company owns more than half of its shares.
  • incorporateTo form a company as a separate legal entity by registering it with the authorities; in contracts, also to make terms from another document part of the agreement.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Companies & Partnerships

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This page explains English vocabulary for learners. It is not legal advice.