As the laws and regulations that influence commercial transactions become more complex, companies also find themselves operating in increasingly litigious business environments.
Commercial contracts are vital to any business and it should be the goal of every company to fully understand the process of formulating and implementing such contracts in order to safeguard your organizational interests, reduce the risk of potential conflict, and enjoy the full benefits that can be derived from these transactions.
As your legal advisor, Veritas Global creates trust-based relationships that are based on honesty, accessibility, and a singular commitment to working closely with you towards a common goal.
Our lawyers are meticulous and detailed in approaching every step of drafting and enforcing all types of commercial contracts – ensuring that you get the best value from the negotiation, overseeing your protection from potential sources of dispute, as well as providing you with competent legal representation should any disagreements arise in the future.
Why should you have commercial contracts in place?
A commercial contract legalizes a mutual agreement between two or more contracting parties, usually businesses entities.
While a verbal or implied agreement can be valid and enforceable, most attorneys are likely to recommend that you put your commercial contracts in writing to reduce the risk of disputes and miscommunication, especially in transactions that involve high value properties or services.
Moreover, having a well-crafted, comprehensive, and legally compliant commercial contract indicates that your organization operates efficiently, legitimately, and within the highest professional standards.
Typical commercial contracts would include, but are not limited to:
- Sale and Purchase Agreements
- Service Level Agreements
- Purchase and Supply Conditions
- Sales and Distribution Agreements
- Franchise Agreements
- Agency Agreements
- Management and Shareholders’ Agreements
- Non-Disclosure Agreements
- Performance Contracts
- Licensing and ICT Agreements
- Master Software and Services Agreements
- Software as a Service Agreements
- International Supply Chain Agreements
- Joint Development Agreements
- Trading Terms and Conditions
Veritas Global is ready to assist you in drafting and executing commercial contracts that are customized to your specific needs and requirements, as provided by state and federal laws.
Backed by years of experience in working with different types of businesses all over the world, you can be sure your negotiations will be covered by commercial contracts that expressly uphold your best interest according to prevailing legal and industry conditions in the international market.
What makes your contracts valid and enforceable?
In the United States, all commercial transactions are governed by the Uniform Commercial Code (UCC). While not a federal law, it is a uniformly adopted state law which imposes legal guidelines for the interstate transaction of business.
Companies that conduct business out of state are required to comply with the applicable UCC law for activities that include selling goods, borrowing money, leasing equipment, and establishing contracts. (However, while the UCC code regulates transactions that involve personal property, it does not cover dealings on real property as this is governed by common law.)
That being said, the fundamental elements that constitute the formation of a valid and enforceable commercial contract are generally the same. These include:
- Mutual agreement between parties. There has to be an offer, acceptance, and a mutual accord on all the services or goods being bought, sold or delivered, the amount being paid and terms of payment, and the schedule for such items to be released or services be rendered.
- Valid consideration. There must be a negotiated exchange of acts or promises from both parties which they are legally obliged to fulfill.
- Legal purpose. For a contract to be valid, the subject matter covered must have a legitimate and lawful purpose. No contract can be enforced for trading prohibited goods or performing an illegal act.
- Legal capacity. Parties involved must have the legal capacity to enter into contract, with full understanding of the terms that lawfully binds them. Generally, this means that upon entering a contract, none of the parties should be below the prescribed legal age, under the influence of alcohol or drugs, or incapacitated by a handicap or illness that affects their judgment.
As your strategic partner and legal advisor, Veritas Global offers professional excellence that is grounded in understanding your practical business needs.
With our vast experience and expertise in corporate law and financial technology, you can rely on us to provide disciplined, straightforward, and insightful advise that will empower you to make more informed, incisive, and innovative business decisions.
Find out more about the Veritas Global advantage