Commercial contract solicitors

What is contract law?

Contract law governs the creation and enforcement of agreements between parties, ensuring that promises made in a contract are legally binding and can be upheld in court. It covers the terms, conditions, and legal obligations of the involved parties.[1] 

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Examples of commercial agreements & contracts

The significance of commercial contracts in the ongoing success of your business cannot be overstated. In the collaborative realm of commerce, businesses invariably rely on the services and contributions of other entities or individuals to maintain their operations. Examples of commercial agreements include:

• Shareholders agreement
• Joint venture agreement
• Partnership agreement
• Terms and conditions of trade
• Employment contracts
• Non-disclosure agreement
• Franchise agreement
• Business purchase agreement
• Purchase and supply agreement
• Sale and distribution agreement
• Service level agreements
• Intellectual property licence and assignment

The purpose of commercial contracts

Regardless of your business's size, its prosperity hinges on the accurate representation of your business agreements, the effective safeguarding of your interests, and the prudent limitation of your liabilities within your commercial contracts.

Commercial contracts fulfil diverse roles in business operations:

Define rights and responsibilities

Commercial contracts serve as the blueprint that outlines the rights and responsibilities of each party involved in the business arrangement. These contracts communicate the agreed-upon terms, ensuring that all parties are well aware of their respective roles and obligations.

Facilitate dispute resolution

Disputes are an inevitable part of business. When conflicts arise, whether resolved amicably or through arbitration or litigation, commercial contracts serve as a reference point to ascertain fault and responsibility.

Safeguard business interests

Commercial contracts act as a shield for your business interests. Be it through confidentiality clauses, indemnity provisions, or other mechanisms, these contracts allow you to protect your interests and mitigate risks associated with interactions with other parties.

Do you need a solicitor to make a contract?

While you don't legally need a solicitor to make a contract, having one can be highly beneficial. A solicitor ensures that the contract is legally sound, clearly written, and covers all necessary terms and conditions, helping to prevent misunderstandings and potential disputes in the future.

What does a commercial contracts lawyer do?

A commercial contracts lawyer provides advice on various aspects of commercial law, including drafting and negotiating agreements, ensuring compliance with regulatory requirements, and managing commercial contracts. They also offer guidance on intellectual property, the procurement process, and resolving contractual disputes before they escalate to litigation.

What should be included in a commercial contract?

A commercial contract should include:

• Parties involved: names and details of all parties.
• Scope of work: clear description of goods or services to be provided.
• Payment terms: details of payment amounts, schedule, and methods.
• Duration: contract start and end dates.
• Responsibilities: obligations and duties of each party.
• Confidentiality: terms for handling sensitive information.
• Termination: conditions under which the contract can be terminated.
• Dispute resolution: methods for resolving conflicts.
• Governing law: jurisdiction under which the contract falls.
• Signatures: signatures of all parties to validate the agreement.

What’s the process of putting a commercial contract in place?

• Initial discussion: outline the agreement's purpose and key terms between parties.
• Drafting: prepare a detailed draft of the contract, covering all necessary terms and conditions.
• Review: both parties review the draft to ensure clarity and completeness.
• Negotiation: discuss and amend any terms that require changes or clarification.
• Legal advice: consult solicitors to ensure the contract is legally sound and enforceable.
• Finalisation: finalise the contract with all agreed amendments.
• Signing: both parties sign the contract, making it legally binding.
• Execution: implement the terms of the contract as agreed.

This structured approach helps ensure that the contract is comprehensive, clear, and legally enforceable.

Can contracts be changed or updated?

Yes, contracts can be changed or updated. This is typically done through an amendment, which must be agreed upon by all parties involved. The amendment should be documented in writing, detailing the specific changes, and signed by all parties to ensure it is legally binding.

What can I do if there is a dispute with a commercial contract?

If there is a dispute with a commercial contract, you should first review the contract terms to understand your rights and obligations, and attempt to resolve the issue through direct communication with the other party. If this doesn't work, consider mediation or arbitration if applicable.

For expert guidance and to explore your legal options, contact Stephensons' commercial contract lawyers. They can provide advice, represent your interests, and help you resolve the dispute effectively. As a last resort, you may pursue legal action in court to enforce your rights or seek damages.