What are Commercial & Corporate Contracts? What Do They Entail?

What is a Contract?

A contract is a legally binding agreement between two or more parties in respect of their rights and obligations to one another. A contract may be concluded orally or may be in writing.

What are Commercial and/or Corporate Contracts?

A commercial contract is an agreement between two or more parties on a commercial issue and are sometimes referred to as business to business agreements.

A corporate contract is an agreement between two or more parties pertaining to the corporate affairs of a business (e.g. shareholders agreement, etc.).

In almost every aspect of operating a business, you will make contracts with third parties (which define most business relationships) and having a properly drafted commercial contracts in place is critical for managing the risks and liabilities associated with running a business. Quite often it isn’t until something goes terribly wrong that business owners realise the importance of negotiating the right commercial contract for their business and prevailing market circumstances. Commercial contracts explain in detail what all parties are obligated to do in order for the contract to remain valid and what the repercussions are should any party fail to comply with the agreed upon terms.

Drafting and negotiating clear commercial contracts helps avoid disputes arising in the first place. It is wiser to spend a bit of money upfront putting in place proper commercial contracts that protect your interests, than to wait until a dispute arises, which will inevitably end up costing you considerably more money than any monies you would have spent putting in place a properly drafted contract in the first place. The age old adage springs to mind “penny wise, pound foolish”.

Drafting Commercial Contracts

It is advisable to put a written contract into place, as it's more difficult to enforce an oral contract in court due to, inter alia, lack of documentation.

Drafting a legal contract refers to the act of documenting the terms applicable to a contractual relationship created by the contract. Contract and commercial law is complex and its application to a commercial agreement depends very much on the individual circumstances. Drafting an effective contract is a multi-step process which requires a commercial lawyer who has a sound understanding of all the legislative, legal, commercial and practical issues pertaining to the contractual relationship. Commercial contracts include, inter alia, agreements which relate to agency, consultancy, franchises, leases, licences and much more.

Contracts should be drafted in plain and simple language that the parties can easily understand. Contracts should not contain contradictory provisions or omit material clauses necessary to conclude a valid and binding contract.

Commercial Drafting Attorneys

At Barter McKellar, we offer innovative tailored contract solutions in all areas of commercial law. We pride ourselves on being able to provide you with the highest quality of commercial legal services. We recognise that a comprehensive understanding of your business and its commercial objectives are key to delivering a consistently excellent commercial legal service. Our professionals have exceptional business acumen which enables them to provide you with commercial contracts that make business sense. We are also able to assist you with the review and negotiation of your commercial contracts to ensure that you are legally covered.

Our talented and highly skilled legal professionals are available to consult on queries relating to commercial contracts, contract conception, contract content, contract implementation and contract enforcement. Contact our offices today to schedule a consultation with one of our specialist contract lawyers.