Frequently Asked Questions
What makes a contract a good commercial contract?
Good contracts are essential for your business as they offer four key advantages that can significantly impact your bottom line.
- Setting your business relationship up for success involves outlining clear expectations, responsibilities, and deliverables. This sets the foundation for productive and harmonious trading relationships.
- Clearly stating payment terms not only ensures transparency but also safeguards your interests by specifying the agreed financial aspects. This clarity can prevent misunderstandings and payment delays.
- By minimising the potential for future disputes and/or non-compliance, a well-drafted contract acts as a preventive measure. It provides a framework for addressing issues upfront, reducing the likelihood of conflicts and legal complications down the line.
- In the event of default, a well-drafted and tailored contract provides a greater level of security; putting the business in the strongest possible position to limit the scope for disputes and increase the likelihood of recovery.