Contracts
Consultations on drafting a contract under English law, legal advice on contract law
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Contracts

The importance of commercial contracts in business

A commercial contract is an agreement between parties that defines their respective rights and regulates their relationships. It has binding legal force, and the parties to the agreement may petition the court for its enforcement. A well-written commercial contract is one of the fundamental elements of business success.

What exactly is contract law?

International contract law is based on the legal norms designed to regulate cross-border contracts. This form of law governs the process of concluding a contract between individuals from various countries, if the parties have not agreed to comply with the laws of one of the parties' respective countries. International Contract Law governs the procedure for concluding agreements, their execution, and the creation of equitable remedies in the event of a breach.

Contract Lawyers' Primary Responsibilities

International contracts are utilized by business owners for the purchase and sale of goods, licensing of business activities, etc. A commercial contract based on English law serves primarily to protect businesses and consumers in the event of breach of contractual obligations.

Why are contract attorneys necessary?

When starting a small business in a foreign country, entering into a contract for the first time, or operating a large company, the services of an attorney are required. A lawyer's primary responsibilities include drafting contracts and overseeing their execution.

To ensure that the agreement contains all essential conditions and requirements, a specialist must understand how to draft and verify such documents, laws, and jurisdictional regulations. When disputes arise, attorneys can serve as mediators or provide assistance in court proceedings.

Legal consultations on contract law are required in order to: 

  • comprehend potential risks and methods for mitigating them; 
  • confirm the availability of all commercial and legal components; 
  • comprehend your rights and responsibilities; 
  • discover ways to reduce your liability;
  • understand the document and what you are agreeing to when you sign the contract.

Elements of the agreement

Several essential elements must be present in every commercial agreement for it to be valid:

  1. Proposal (offer) - One party makes a proposal, which it enters into the contract and offers to the other party for consideration. There are two parts to this sentence: expression and intent.
  2. Acceptance of such an offer without modification (acceptance) reflects the offeror's terms, which must be accepted by all parties. Otherwise, the acceptance is interpreted as a rejection and a counteroffer.
  3. Mutual obligation - a commercial contract is only valid if both parties are bound by its terms.
  4. The parties' intention to enter into a legally binding contract of their own accord.

Choice of law and of forum

When drafting a contract and contemplating contractual disputes, it is crucial to pay close attention to choice of law and venue issues. Choice of law refers to the national or regional law that the court employs to interpret the contract. Common Law is one of the most popular legal systems in the world, but it is quite difficult to navigate all of its features and requirements without specialized training. 

How do you draft a contract?

A large number of legal norms must be mastered in order to draft a legally binding contract, so entrepreneurs may require assistance when drafting a commercial contract. Consultation on English contract law provides the opportunity to determine whether additional conditions are necessary, to select the appropriate language for the contract, and to devise means of protecting all parties.

Contract drafting under common law

There are numerous types of contracts used in daily business operations, including:

  • Nondisclosure agreements are also referred to as NDAs. To avoid errors that could render a non-disclosure agreement invalid, qualified attorneys can help you draft one.
  • Services or subcontracting agreements. In the first scenario, both the supplier and the client must accept the terms of the service-providing company. In the second scenario, if the general contractor requires assistance in performing the work, he may employ subcontractors. Both signatories must agree on the subcontractor's tasks, the amount of time they have to complete them, and their compensation. The agreement should include clauses outlining the actions of the parties in the event that any of these factors change or if the work is performed improperly.

The agreement must be in writing to ensure the correct legal protection and guarantee that all sides are aware of and concur to their commitments. To eliminate any potential uncertainty in terms and conditions, commercial contracts must be drafted with the assistance of attorneys.

Violation of contract

In the event of a breach of contract, the injured party may file a lawsuit against the violator and demand compensation for losses, specific performance, or the termination of the contract. If you require assistance in resolving contract law disputes, it is recommended that you enlist the services of specialists. Business contract attorneys have experience in advising both private individuals and businesses on breach of contractual terms under English law.

Examples of contract terms being violated: 

  • The entity did not fulfill its contractual obligations within the specified time frame.
  • The party has not fulfilled all of its contractual obligations.
  • Incorrect execution of a duty.

Using ADR, it is possible to resolve the dispute outside of court or to receive assistance in the process of resolving the dispute under contract law.

The interaction process with us

Our team has expertise in the field of technological contracts and can offer advice in the areas of information technology and intellectual property protection. We can assist you with the following:

  1. The drafting of contracts with binding legal force based on English law.
  2. Termination of a nondisclosure agreement or letter of intent.
  3. A dispute resolution service utilizing alternative dispute resolution (ADR) techniques.

Cooperation in stages with our specialists:

  1. Initial consultations are held so that the attorney who will represent your interests and work with you can clarify with you the necessary contract terms and your specific transactional desires.
  2. Choosing the agreement type. Before beginning a transaction, you should determine the type of contracts required. This will aid in reducing the number of disputes and facilitate the development of beneficial relationships with other participants.
  3. Construction of the contract. After reaching an agreement on the general terms, a project will be developed, which will then be reviewed and, if necessary, modified. Before signing the contract, a thorough examination of the subject matter and all parties involved will be conducted at this stage.

Conclusion

A commercial contract is an important part of a business and special attention must be paid to its drafting, especially if the business plans to operate in a foreign market. To take into account all the necessary aspects, you should seek the help of professionals who have experience in this field.

The specialists of our company will accompany you in the review and development of contracts and help you draft them in such a way that they protect your interests. We provide advice on all types of contract requirements, analyze ready-made contracts for disputes.

FAQ

What exactly is contract law?

Contract law is the body of law that governs the creation and enforcement of legally binding agreements (contracts, treaties and transactions).

 

What exactly is a contract?

A contract is an agreement between two or more parties that establishes mutual legal obligations. Oral and written contracts are both acceptable. It is critical to remember that the terms "contract" and "agreement" are not synonymous. Agreements, unlike treaties (or contracts), are not necessarily legally binding.

 

Why do you require the services of a contract law expert?

The Contracting Specialist is responsible for two main functions: 

  • contract creation;
  • and contract enforcement.

Contract law attorneys assist parties in negotiating fair, straightforward, and legally binding contracts for large or complex transactions. Contact IQ Decision UK for more information on this topic and assistance with transaction or contract execution.

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