When do You Need a Commercial Contract?

Every time you begin a commercial relationship, you need a commercial contract. A written confirmation is evidence of the terms that have been agreed upon between two parties. If the question of when to draw a commercial contract comes, the thumb rule is the moment any talks have been finalized. Business relation can be a purchase and sale agreement, an agency relationship, a consultancy service, a data processing agreement, or a distribution service.

Disagreements without a contract poses difficulties in the arbitration process which consumes time and financial resources.

With just an oral agreement, for dispute resolution, you’d have to depend on communications. In the end, it’s just your word against theirs. A contract helps define the terms of the relationship so that in a dispute, you always have recourse to the contract.

Even if you have a contract, getting the T&Cs checked is essential so that you don’t settle on your interests. Our agreement templates are drafted by specialists who have an in-depth knowledge of the sector and practical experience in generating contracts. We do more than a traffic-light review. When you buy our templates, you have all the clauses in your hand that you need to fill in.

Why Commercial Contracts Are Important?

A Commercial contract makes your purposes in the relationship clear and helps know what the other party expects from the commercial association. While it might seem like a tedious task, in the interests of long-term security, you should have a business contract.

Contents of the Agreement:

• Name and address of the parties involved
• Duration of the Agreement
• Purchase and Sale of Notes
• Type of stock – preferred or secured convertible notes
• Shareholders meetings, communication, positive and negative covenants
• Date of the Agreement
• Documents required for conversion
• Representations and Warranties of the company
• Representations and Warranties of the purchaser
• Conditions of the company’s obligation at the time of closing
• Conditions of purchaser’s obligation at the time of closing

• Terms and conditions of termination of the agreement

• Remedies available in case of breach of agreement

• Renewal process if any
• Registration of the securities
• Covenants of the company and the purchaser
• Waiver of Rights
• First refusal of rights
• Severability of the contract
• Any notices
• Miscellaneous provisions

What Happens in Case of Violation?

In case of violation of the Agreement by either of the parties involved, it calls for a breach of contract. The agreement provides the remedies for breach, that helps the parties to settle the dispute accordingly.

The need for proper documentation is an essential part of any business dealing. Thus, this arrangement is one such document that protects the rights of the organization as well as the investor. In that way, the legal rights and obligations of the parties are protected. The agreement establishes a formal relationship between the providing company and investors.

The negotiation process of any agreement depends on the choices of the parties involved in an agreement- whether they want to do it individually or appoint a third party or attorney to do the work for them.

Important agreements to keep in in mind:

• Software and technology licensing, reselling and cooperation
• Commercial lease for construction, mining, drilling, and distribution
• Equipment lease including payload processing
• Manufacturing contracts including procurement and purchase of power 
• Administrative services for credit services, application provider services, digital television agreement, and distribution service agreements
• Commercial contracts including internet advertising, the global scope of work, fleet services, pre-construction, and professional services, and web construction services
• Supply agreements for exclusive rights, inventory management, and other supply arrangements
• Purchase agreements including accounts receivable purchase, refinery, note purchase, repurchase, installment and loan purchase, and purchase and assumption agreements among others
• Stock-related purchase contracts including stock purchase, equity purchase, and master purchase and sale agreements