Things to Consider When Preparing Commercial Contracts

Importance of Commercial Contract

Commercial contracts form the basis of business relationships and are the primary document to refer to in case of disputes.

Critical Clauses

1. Definition of Parties

Full trade names, addresses and authorized representatives of parties must be clearly stated.

2. Subject of Contract

Definition of goods or services must be clear and detailed.

3. Payment Terms

• Payment amount
• Payment due date
• Late interest

4. Delivery Terms

Delivery location, time and responsibility must be clearly defined.

5. Penalty Clause

Sanctions to be applied in case of contract breach must be defined.

6. Dispute Resolution

Authorized court or arbitration clause must be added.

Common Mistakes

• Using ambiguous expressions
• Not including force majeure clause
• Not specifying termination conditions
• Not checking signing authority

Conclusion

Professional legal support secures your commercial contracts.