Essay, Pages 4 (991 words)
For businesses and organizations, the key requirement is to ensure that the legal arrangements allow the full commercial benefits to be realized. In the day-to-day course of business, regardless of the size of your operation, it is fundamental to regulate and document your business relationships.
To do this, your with suppliers, customers, distributors and agents must be drafted in a way which properly protects your business interests.
Weak or non-existent make a business unstable. Sound legal advice is therefore essential when drafting these documents to prevent your business from entering into one-sided agreements and avoid time-consuming and financially dangerous repercussions in the event of breaches of contract, or if the matter needs to be taken to court.
It is important to make sure that all of your business contracts are drawn up professionally and are legal watertight, as it is essential that both parties understand the terms included and are aware of their rights and responsibilities afforded by the contract. Poorly worded contract terms could have serious implications for both parties and their stakeholders.
Usually, the following are included in :
- Parties: The names and addresses of all the contracting parties should be clearly stated.
- Definitions and Interpretations: Explanations of the specific meaning of any terms defined in the contract.
- Payment Provisions: Outlines the exact price to be paid for the goods or services provided and the date or dates for payment to be made should be clearly set out.
- Description of Good or Services: A specific description of the goods or services that will be provided under the contract, including the level of service if the contract is for services.
- Term of contract: Specifies the length of the contract.
- Timescale: The specific timescale for the project should be noted including any deadlines that have to be met.
- Limitation of liability: For example, ‘Neither party shall have any liability to the other party for a claim of loss of profits.
- Termination provisions: Sets out the circumstances under which the parties can terminate the contract.
- Change of Control: The procedures for change of ownership/controlling interest etc. For example if the first party transfers a controlling interest to a competitor of the other party.
- Dispute Resolution: Sets out the procedures in the event of the parties having a dispute.
- Confidentiality: There should be confidentiality clauses drafted in the contract which identify the information being protected and the circumstances in which it can be used or disclosed.
- Intellectual Property Rights: States who owns such rights to products provided under the contract.
- Warranties: It is common for the party providing goods or services under a contract to provide certain warranties in relation to the delivery of the goods or services.
- Indemnity: Indemnity clauses are an express obligation to compensate the indemnified party by making a money payment for some defined loss or damage.
- Force Majeure: This clause should cover situations where performance of the contract is impossible through no fault of either party. For example, if there is a natural disaster or civil unrest.
- Applicable law: There should be a clause indicating which law governs the contract. For example, ‘This Agreement shall be governed by and construed in accordance with the laws of India’.
Running a business involves entering into many different relationships and dealing with many different people and organizations. The terms of each different relationship and arrangement need to be documented so that each party is aware of his/her rights and obligations and duties in respect of it. As well as ensuring that both parties understand the agreement being made, they also ensure that there is a signed record of the agreement in case disputes srise. Each type of agreement must satisfy certain legal requirements and these will differ according to the nature of the relationship and the form of business.
For example, terms and conditions of sale are essential in setting out the between the business and the customer. The content of the terms and conditions must comply with the law and this is different depending on whether the customer is a business or a consumer. In all the agreement is designed to set out the terms by which all parties within the contract will be legally bound. If any party breaks the contract they have signed, this is called a ‘breach of contract’. If you do break the terms of a contract you have signed, there could be far-reaching consequences. Our specialist team of commercial solicitors and barristers act for a broad spectrum of clients and have expert knowledge and experience in the drafting of all types, species and sub-species, of , including:
- agency agreements
- application service provider agreements
- confidentiality agreements
- data processor agreements
- distribution agreements hire and hire purchase agreements
- intellectual property licences and assignments
- manufacturing agreements
- media agreements
- novation agreements
- product supply agreements
- publishing agreements
- reseller agreements
- services agreements
- software development agreements
- software licences
- sponsorship agreements
- terms of business
- web development, hosting and maintenance agreements
Reasons to Use Net Lawman’s Commercial Contracts
We advise commercial entities of all sizes – from start-up businesses, small and medium sized business and to the large corporate enterprises throughout India and internationally. We support businesses in a variety of ways. Our expert team of solicitors and barristers draft terms and conditions of business, prepare contract documentation, advise on contractual risk, regulatory compliance, give legal advice in contract structuring, post-contract management and administration and identification of claims and resolving disputes.
There are lots of reasons to use the templates available on our site:
Our contract templates are written in (relatively) clear English.
The templates are designed to be tailored by you to suit your particular requirements. They come with detailed explanatory notes to help your tailoring.
The contract templates have been drafted by expert team of Solicitors and Barristers with many years’ experience advising on issues of commercial law.
The contract templates are regularly updated to keep pace with changes in the law.
They are very cheap.
The templates come with a money-back guarantee.