Law Dictionary

A business plan is a written document setting out a business's goals, strategy, market, operations and financial projections. It is a business term rather than a legal one. Lenders, investors and some government programs ask for one, but there is no general legal requirement for a business to have a business plan.

Business registration in British Columbia means recording a business with BC Registries. Companies come into existence by incorporation under the Business Corporations Act, while sole proprietorships and general partnerships register by filing a registration statement under the Partnership Act. Registration does not protect a name as a trademark and is separate from tax accounts and municipal licences.

Business structure is the legal form a business takes. In BC the main options are a sole proprietorship, a general, limited or limited liability partnership under the Partnership Act, a company under the Business Corporations Act, and a cooperative. The choice determines who is personally liable for business debts, how income is taxed, and how ownership can be transferred.

Business succession planning is arranging in advance how ownership and control of a business will pass when an owner retires, becomes incapacitated or dies. In British Columbia it commonly combines a shareholders agreement with buy-sell terms, an estate freeze, a family trust, a will and an enduring power of attorney. No law requires a plan.

A business transaction is any commercial dealing between parties, such as a sale of goods or services, a financing, a lease, a licence, or the purchase or sale of a business. In legal practice the phrase usually refers to significant deals, such as share or asset purchases, that are documented by written agreements and involve due diligence.

Business valuation is the process of estimating what a business or an interest in it is worth, usually by a Chartered Business Valuator using income, market or asset approaches. In British Columbia it is central to share purchases, shareholder buyouts and estate freezes, and to court-ordered buyouts in dissent and oppression proceedings under the Business Corporations Act.

A buy-sell agreement is an arrangement between co-owners of a business setting out when and how an owner's interest will be bought or sold, for example on death, disability, retirement, departure or a dispute. In BC companies it is usually part of a shareholders agreement and may include rights of first refusal, shotgun clauses and valuation formulas.

Capital gains tax is income tax on the profit from selling capital property such as shares or real estate: proceeds less adjusted cost base and selling costs. Under the federal Income Tax Act, half the gain is taxed at the owner's combined federal and BC rates. Qualifying small business shares may be sheltered by the lifetime exemption.

Civil litigation is resolving a private dispute through a court or tribunal. In British Columbia it usually begins with a notice of civil claim in the BC Supreme Court, a notice of claim in Provincial Court small claims, or a Civil Resolution Tribunal claim, followed by document disclosure, settlement efforts and trial. The basic limitation period is two years.

Clearing title means removing registered charges, liens or other claims that cloud a property's title so it can be sold or financed. In British Columbia's land title system, this is done by obtaining discharges, applying to the Land Title Office, or applying to the BC Supreme Court to cancel charges such as builders liens or certificates of pending litigation.

Collective bargaining is the process by which a certified union and an employer negotiate a collective agreement setting wages, benefits and working conditions for a group of unionized employees. Once a union is certified, the employer must bargain with the union rather than with individual employees, and both sides must bargain in good faith.

A commercial dispute is a legal conflict arising from business dealings, such as breach of contract, unpaid invoices, shareholder disagreements, lease defaults or construction claims. In BC these are resolved by negotiation, mediation, arbitration if the contract requires it, or in court: the Supreme Court, Provincial Court small claims, or the Civil Resolution Tribunal for claims up to $5,000.

Commercial law is the body of law governing business dealings, including contracts, the sale of goods, secured lending, negotiable instruments, agency, partnerships and insolvency. It overlaps with corporate law, which governs the creation and internal affairs of companies. Commercial law is drawn from both statutes and the common law.

A commercial lease is a contract giving a business the right to occupy premises such as an office, shop or warehouse for a term in exchange for rent. In BC, commercial leases are governed mainly by their own terms and the common law, not the Residential Tenancy Act. Key terms include rent, term, renewal, assignment and personal guarantees.

Commercial property is real estate used to carry on business, such as offices, retail units, industrial buildings and multi-unit investment properties. In British Columbia, ownership is registered under the Land Title Act, purchases attract property transfer tax and often GST, use is controlled by municipal zoning, and environmental liability can attach to owners under the Environmental Management Act.

Commercial rent arrears are rent and other charges a business tenant has failed to pay under a commercial lease. In British Columbia, the landlord's remedies come from the lease and the common law, including suing for the debt, distress (seizing the tenant's goods) and terminating by re-entry. The tenant may ask the court for relief from forfeiture.

A commercial tenancy is the rental of premises used for business purposes, such as a store, office, restaurant or warehouse. The rights and obligations of landlord and tenant are set mainly by the written lease, which covers rent, term, renewals, repairs, permitted use, assignment and default. Commercial tenancies are not governed by the Residential Tenancy Act.

Competition law is the federal law that prohibits anti-competitive conduct such as price fixing, bid rigging, wage fixing, abuse of dominance and deceptive marketing, and reviews mergers that may substantially lessen competition. In Canada it is set out in the Competition Act and enforced by the Competition Bureau, the Competition Tribunal and the courts across every province, including British Columbia.

Competition law is the body of federal law that protects competition in Canadian markets. It prohibits conduct such as price fixing and bid rigging between competitors, regulates abuse of dominance and other restrictive trade practices, prohibits misleading advertising, and reviews mergers. In the United States the same field is called antitrust law.

Compliance means a business following the laws, regulations, licences and permit conditions that apply to it, as well as its own internal policies and contractual commitments. It is a general business term rather than a legal term of art. A compliance program typically identifies applicable requirements, assigns responsibility, trains staff and monitors adherence.

Confidentiality is the obligation to keep certain information private and to use it only for permitted purposes. In business it usually arises from a confidentiality or non-disclosure agreement, from confidentiality clauses in other contracts, or from relationships of trust. Even without a contract, the law can protect information that was shared in confidence.

A confidentiality agreement, or non-disclosure agreement (NDA), is a contract in which a party receiving confidential information promises to use it only for a stated purpose and not disclose it. In BC it is enforced as an ordinary contract, by damages or an injunction, alongside the equitable claim for breach of confidence. Key terms are scope, exclusions and duration.

A construction contract is an agreement for an improvement to land, such as building, renovating or supplying materials, between an owner and contractor or a contractor and subcontractor. In BC it sets scope, price, schedule and change orders, and the Builders Lien Act adds mandatory 10% holdbacks, trust obligations over contract money and lien rights for unpaid parties.

Construction law is the area of law dealing with building and infrastructure projects. It covers construction contracts, tendering, payment, builders liens, holdbacks, delays, defects, insurance and bonding, permits and building codes, and workplace safety. Disputes are resolved through negotiation, arbitration or litigation, often involving owners, contractors, subcontractors and design professionals.

A consumer contract is an agreement in which a business supplies goods or services to an individual for personal, family or household use. In British Columbia the Business Practices and Consumer Protection Act sets mandatory disclosure and cancellation rights for online, door-to-door and prepaid contracts, bans deceptive and unconscionable practices, and makes any waiver of those rights void.