Standard Commercial Contracts
Virtually every commercial transaction entered into has, at its base, a commercial contract. Commercial contracts can be written, verbal or implied from conduct in a formal or an informal manner. Contracts are essential when it comes to running a business or commercial practice, because it lays out the basic terms and conditions of your transaction , and what you and other parties involved are obligated to do by law.
Rights and obligation in Contracts
Contracts are legally-binding agreements between parties, where the parties involved are legally obligated to do or restrain from doing particular things. This includes the parties’ rights, such as receiving products in good condition or receiving timely wages, as well as their obligations to conduct themselves in a certain manner. Once a contract is signed, these rights and obligations then become enforceable by the law.
Ideally contracts ensure that the outcomes both parties wish to achieve are adequately dealt with, and address the specific commercial circumstance. This can involve making sure that obligations are limited, as well as conferring rights and entitlements that place the party in the optimum position if a dispute arises.
The Business Documents Folder contains a massive range of professionally drafted, fully editable legal documents to enable businesses to contract and communicate with customers/clients and suppliers.
Business-to-business contracts are different from business-to-consumer sales. Business-to-business contracts have fewer default legal clauses to protect uneducated or uninformed parties or to give these parties an out to escape from a properly executed agreement. The terms of a commercial agreement are important, but only in regard to the written terms of the agreement in order to clarify the parties' intentions. Courts will not consider outside influences unless a fraud claim is presented.
Requirements in a Valid Enforceable contract
There are some basic details that must be present for any contract to be legal and enforceable:
Agreement: There must be an agreement that includes an offer and acceptance, and the parties must be on the same page when it comes to the elements of the agreement. Consideration: Each party has to give something in the exchange. This is known as consideration and is what makes something a contract rather than a gift. Legal Capacity: All parties must have the legal capacity to enter into a contract. There are certain circumstances, such as when one party is under the age of majority or was intoxicated at the time, that can render the contract void. Willingness: A party must be willing to enter the contract. If you sign it against your will or were misled, etc., you may be able to void the agreement. Legal: The contract's subject matter has to be legal under state and federal law. You cannot enforce a contract if it's for the performance of an illegal act.