Corporate commercial contracts are agreements between two business entities or corporate parties. Commercial contracts lay down the terms and conditions that govern the business relationships between one business with another or between one business with its employees, vendors, shareholders, and clients.
Business commercial contracts cover all aspects of the business’s requirements that range from the management of its day-to-day activities to vendor relationships to sale of property. Such corporate commercial contracts can be written, verbal or implied in certain cases. However, written corporate commercial contracts hold the most value among these as they act as guide and evidence to the provisions governing the business’s relationships with third parties.
Most commercial contracts contain plain language and standardised clauses that can be used by the business with different employees, vendors, sellers or clients, as applicable. However, it is pertinent to get the structure and contents of corporate commercial contracts drafted and reviewed by expert corporate attorneys as the smallest clauses can have complex interpretations when scrutinised in a legal dispute.
To ensure uninterrupted functioning and prevention of legal disputes, corporate commercial contracts must be designed by experienced documentation lawyers to get business agreements drafted in accordance with the functioning and requirements of the business.
A lawyer would know where an indemnity clause is required and where a ‘force majeure’ is to be included. This, however, is often ignored by set templates available for free only that provide limited protection the business.
Types of Corporate Commercial Contracts
Throughout its lifecycle – from incorporation to winding up- a business requires various types of business commercial agreements. Some of these corporate commercial contracts include:
- Service Level Agreements
- Licensing Agreements
- Franchise Agreement
- Shareholders’ Agreement
- Joint Venture Agreement
- Tripartite Agreements
- Employment Agreement
- Sale-Purchase Agreement
- Distribution and Logistics Agreement
- Confidentiality, Non-Disclosure and Non-Solicit Agreement
- Property Agreements like rent agreement, lease deed, mortgage deed, etc.
Well-drafted corporate commercial contracts enable a business to initiate legal proceedings upon any kind of breach or violation of the business agreements. Simply, corporate commercial contracts protect the business from risks and challenges in dealing with third-parties as they create benchmarks which need to be adhered to when conducting any dealings or transactions with the business.
After documentation, comes vetting of corporate commercial contracts that includes reviewing each and every clause of the contracts to ensure legal applicability and accuracy of the provisions. Merely drafting does not complete the documentation cycle and every contact used by the business must be carefully examined to ensure that there is no omission or errors in the agreement.
Proper contract vetting ensures that the corporate commercial contract meets all the requirements of a valid contract and is drafted in accordance with the laws applicable. For instance, an IPR Licensing agreement must be drafted and vetted in accordance with the IPR laws prevalent in the country; Sale-purchase agreements must be drafted in accordance with the Transfer of Property Act.
There are times when the other party wishes to negotiate the clauses included in corporate commercial contracts. Here, a business requires counsel of an expert lawyer who can negotiate with contents of the contacts with the other party and ensure that the interest of the business is upheld.
A business may become vulnerable to legal threats if its corporate commercial contracts are not properly handled through any of these three stages. This makes its requisite for a business to get customised business agreements drafted from a trusted and well-versed advocate who holds prior experience in the corporate commercial contract documentation.
LetsComply can be your Virtual legal counsel and help your business with all aspects of corporate commercial contract documentation- drafting, review, and negotiations. Call us at +91-9717070500 or send an email at firstname.lastname@example.org. Our specialised commercial lawyers will assist you at every step while mitigating any risks associated with corporate commercial contracts.