Every business involved in an agreement with clients or customers uses a commercial contract to formalise the terms and conditions of the deal in a formal document. Contracts are legally binding and hold both parties liable for the terms and conditions enclosed therein.
Commercial contracts cover a range of topics. It can be a business to business contract, or between a company and their customers. There is a specific framework provided by law relating to the guidelines in writing a proper contract. A contract between businesses is different from a contract between a company and their customers. Regardless of the purpose of the agreement, contract law provides for the appropriate procedures to be adhered to when drafting such documents.
A contract also protects both parties in case there are concerns, complaints, or issues with the services rendered or products purchased. Since a contract legally binds both parties, the one who is aggrieved can file a legal complaint basing on the specific tenets of the terms and conditions.
When is a commercial contract necessary?
There are many reasons why a business needs to write contracts. Naturally, a commercial entity entering into a business agreement with another commercial party needs an official document to reflect the terms of the deal. Commercial agreements are not likely to occur between private individuals. Here are some examples of situations when a commercial contract is necessary:
- A restaurant owner and wine supplier should have a written agreement to help each party settle possible concerns or disputes with the services rendered.
- A used car dealer should also draw up a contract when a customer buys a car.
Even private individuals have seen many commercial contracts concerning everyday services and products bought. If you are considering legal action concerning a contract breach, the following should guide you:
- Violation of contract legal action has a prescription period of 6 years from the time the breach occurred.
- An unwritten contract is contestable.
Since a well-written contract is necessary to ensure that legal action cannot remain valid, businesses often hire commercial contract experts to help them draw up professional and expertly written contracts. Additional benefits of hiring a professional contract writer are as follows:
- It is cheaper than hiring a full-time technical writer. Companies don’t always hire a full-time contract writer. Often, companies seek the services of solicitors with expertise in commercial contract law. A one-time payment is cheaper than hiring a full-time employee.
- Knowledge and skill. There are intricacies involved in contract law that only an expert knows. A professional contract writing service differs from a commercial lawyer regarding approach. You’ll find that a commercial contract writing service creates insightful and approachable documents, different from a commercial lawyer would but still containing the important legal details.
Whether you prefer to have commercial contracts written by a lawyer or a commercial contract writing service depends on the needs of your business. Consider the pros and cons of each approach to find a suitable solution for your company.