TTK Article 12, "The person who operates a commercial enterprise, even partially, on his own behalf is a merchant."
Cases Considered as a Trader
- Real person operating a commercial enterprise
- Joint-stock, limited, collective, commandite companies
- Cooperatives
- Public economic enterprises (some with conditions)
Results of Being a Trader
- Obligation to keep commercial books
- Registration in the trade registry
- Use of trade name
- Prudent businessman standard (TTK art.18/2)
- Invoicing obligation
- Commercial customs and regulations customs
- Special rules in bills of exchange
Difference between Tradesman and Merchant
A tradesman is a person whose commercial activities are small-scale and whose capital is limited. It is not within the scope of merchant, it is registered in the tradesman registry.
Prudent Businessman Standard
The Supreme Court accepts that "higher care than an ordinary person" is expected from the merchant. This may have consequences not in favor but against the trader in contract interpretation, liability and risk assessment.
Termination of Trader Title
- Closing of commercial enterprise
- Liquidation of the company
- Termination of legal entity
Commercial law lawyer is recommended.