Commercial contracts are binding arrangements between two or more commercial organisations, regulating the business relationship between those organisations. Most commonly, commercial contracts are for the sale and supply of goods and services, but they also include:
There are certain issues which are essential to consider in all commercial contracts, many obvious, but some less so.
These include the time at which a contract comes into force, its duration, the obligations (including as to payment) of each of the parties, methods of termination, limitations of liability and restrictions on the parties.
It should also be borne in mind that, if two parties enter into a business relationship without any formally agreed contractual terms, it is very likely that the operation of law and the actions of the parties will imply contractual terms which are binding on those parties, often with unexpected and undesirable results, which cause a great deal of expenditure of time and money to put right. By having the right contract agreed between the parties in advance, the risk of such outcomes can be significantly reduced.
We have extensive experience and expertise in negotiating and drafting all kinds of commercial contract. We take a realistic and commercial approach to a client’s needs, always ensuring that we understand the commercial reasons for the proposed contract.