Any business is likely to require a range of commercial contracts to cover its various business activities and its relationships with its customers and suppliers.
Examples of commercial contracts are terms and conditions of sale or purchase, service agreements, framework agreements, agency or distribution agreements, confidentiality agreements or intellectual property licensing agreements.
What key elements should a commercial contract cover?
Each type of contract will have its own unique requirements but any agreement must clearly set out the rights and obligations of each party. A carefully drafted contract can avoid disputes arising, and in the unfortunate case that they do arise, should suggest ways for the parties to resolve the contract dispute or, in a worst case scenario, to exit the arrangement.
Key elements to be covered are the term of the agreement, and goods or services to be supplied, the payment terms for such goods or services, any specific obligations on each party, the law governing the contract and the courts which can hear a dispute, whether any mediation or alternative dispute resolution procedure should apply, in what circumstances the parties can terminate the agreement and what the consequences of termination are.
Intellectual property licensing agreements
As well as tangible goods, it is important to protect any intellectual property in your business. It can be profitable to license your intellectual property to another person or entity, so that they perhaps have the right to display your copyrighted works or utilise your business’ registered trade mark(s) with their own marketing material or products. A licensing agreement should clearly define and protect your intellectual property rights and strictly control how the other party can use them.
How can our contract lawyers help?
We can discuss in depth your requirements and draft a commercial contract to suit the needs of your business.
How long does it take to draft a commercial contract?
Our solicitors can usually provide a first draft of a commercial contract within 7-14 days.