Law specialisms : Commercial

Richard Welfare is a partner in the commercial practice of Hogan Lovells' London office. He specialises in regulatory work including copy clearance and product composition.

What does the work involve?

At the heart of commercial law lies the contracting process. Commercial lawyers can work on a broad spectrum of transactions, from substantial outsourcing, joint ventures and project development agreements to day-to-day manufacture, logistics/warehousing, advertising and sponsorship arrangements. The common element with all of these transactions for a commercial lawyer is the drafting and negotiating of contracts, whether in their own right or as part of complex mergers and acquisitions (M&A) and financing transactions.

A typical transaction relating to a one-off contract usually involves discussing/reviewing the key commercial drivers with the client, preparing the first draft of the contract (or reviewing a draft provided by the other side), negotiating the key issues and preparing re-drafts reflecting these negotiations and finalising the mutually agreed contract. More complex transactions can involve additional steps, including making sure an agreement fits within a framework of contracts.

Numbers working on a particular transaction will vary. Preparing standard terms of sale or purchase or drafting long-term supply contracts usually only involves one or two members of the commercial team. Substantial projects may involve teams of five or more, where the commercial lawyer will draw on and project manage the expertise of colleagues in many other practice areas (such as intellectual property, employment, tax, property and corporate structures) as well as drafting and negotiating the main contract documents. The commercial lawyer will usually be working on more than one agreement at any time.

The best and worst aspects of practising commercial law are probably the same. The law is constantly changing and evolving. Keeping up to date with the latest commercial and legal developments requires dedication, but ensures that the work is never dull.

Who are the clients?

The types of clients can include small start-up businesses, local authorities, medium-sized enterprises and big well-known companies in a range of markets and across a variety of industry sectors. Commercial lawyers gain a real understanding of a client's business, how it works, current and future strategies and its relationships with customers, suppliers and partners. There is usually a good mix of time spent in the office and time spent visiting clients and attending meetings with other lawyers; secondments to client offices aren't uncommon.

What do trainees do?

Tasks include researching and sense checking, drafting legal documents and legal briefings and assisting at client meetings and completions. There will usually be opportunities for a trainee to follow and contribute to the evolution of a contract from start to finish.

What does the future hold?

The credit crunch and the current challenging global trading conditions have affected the volume and value of commercial work that is available. However, as the contracting process forms the core of day-to-day trade for most businesses, work levels have remained comparatively consistent. The work carried out by the commercial lawyer is perhaps even more vital in times of economic hardship as businesses need to be even more careful about the terms upon which they contract, or the parties with which they are concluding deals, to avoid making costly mistakes.

What skills do I need?

• The ability to think creatively, laterally and commercially
• Project management skills
• The dedication to keep up to date with a continually evolving area of the law
• Sound drafting and negotiation skills
• Adaptability, working alone and as part of a team
• The ability to consider the bigger picture and not just focus on the issue at hand