Legal Question in Business Law in United Kingdom

Re: Commercial Awareness

The answer would, I suppose, depend on the context in which the term is used. The most common context in which commercial awareness is used in relation to solicitors today is with respect to suitability/aptitude for practice in commercial area such as general commercial, corporate or banking.

Law does not exist in a vacuum. How it commercial law is interpreted and applied in practice very much depends on contemporary business trends and practices as well as the legal rules currently in force. So generally, commercial awareness, used in reference to solicitors, refers to a sensitivity to the practical business context in which any legal problem must be construed in order to properly understand the issues involved and to formulate a suitable resolution. To demonstrate commercial awareness does not mean that the solicitor must advise on non-legal issues (eg: whether to employ a transfer pricing mechanism) but it does mean that the solicitor is at least generally aware of such aspects of doing business and how they may or may not impact on any legal issues.

When firms mention that they are seeking to employ a trainee solicitor or a more experienced practitioner with "commercial awareness", what they are primarily looking for is someone who will bring a common sense approach to handling their client's legal problems as opposed to a purely academic approach. Commercial awareness may or may not also connote at least some familiarity with current business concepts, practices and trends.