Commercial vs Civil Acts

Differentiation Between Commercial and Civil Acts

• There are different theories to differentiate between commercial and civil acts.
• Speculation Criterion: The act's purpose is to gain profit.
• Circulation Criterion: The act aims to facilitate the movement of wealth (goods, services, money, etc.)
• Enterprise Criterion: The act is characterized as commercial if it is carried out by an enterprise.
• Jurisprudence considers all three theories combined to determine if an act is commercial.

Aspects of Differentiation

• Court Jurisdiction:
  • There is no distinction between civil and commercial courts in Egypt.
  • However, there are specialized commercial courts of summary jurisdiction in Cairo and Alexandria.
  • Specific Economic Courts handle criminal cases related to investing, consumer protection, commercial, and banking transactions.
• Rules of Evidence:
  • In civil cases exceeding EGP 1,000, evidence must be in writing.
  • There is no such limitation in commercial matters.
  • Evidence can be provided by witnesses or other means, such as presumptions.
• Bankruptcy:
  • Only merchants can be declared bankrupt.
  • A merchant cannot be declared bankrupt unless they stop paying commercial debts.
• Solidarity Between Debtors:
  • In commercial matters, debtors are jointly and severally liable for payments unless stated otherwise by law or by agreement.
  • In civil matters, joint and several liability is only established by agreement or law.

Other Key Differentiating Factors

• Judicial Grace Period:

  • Courts might grant civil debtors a grace period to pay their debts, depending on circumstances and the amount of harm caused to the creditor.
  • In commercial matters, a grace period is granted only in exceptional circumstances and without causing harm to the creditor.

• Expeditious Enforcement of Judgements:

  • Judgements in commercial matters are immediately enforceable with a suretyship provided by the beneficiary of the judgment.
  • Non-commercial judgements can only be enforced after all appeals are exhausted.

• Short Prescription Period:

  • Commercial lawsuits and final rulings are generally prescribed after 7 years from the due date of the obligation (unless stated otherwise by law), and final rulings after 10 years.
  • Civil lawsuits and final rulings prescribe after 15 years.

• Notice:

  • In civil matters, the creditor must notify the debtor officially.
  • In commercial matters, non-official forms of notice such as registered letters, telex, fax, or other communication methods are accepted.

• Rate of Interest:

  • Civil debtors must pay 4% interest as compensation for delayed payments unless agreed upon otherwise.
  • Commercial debtors must pay 5% interest for delayed payments unless agreed upon otherwise.

This quiz explores the differentiation between commercial and civil acts, focusing on various criteria such as speculation, circulation, and enterprise. It also covers the jurisdiction of courts in handling these cases, particularly within the context of Egypt. Test your understanding of the theories and practical implications of these distinctions.