Legally sound and detailed business contracts can help protect partners’ investments as well as the business from potential disputes and problems. Reliable commercial lawyers can negotiate favourable terms as well as ensure that the contract is legally valid under Australian commercial law. Businesses that operate without a business contract in place are faced with increased risks of unresolved disputes and costs and potential litigation as well. Writing out a commercial contract not only involves drafting the terms and conditions but also includes understanding commercial considerations, understanding the importance of negotiating terms as well as tactics that should be employed to get the best out of the transaction.
In fact, it’s best if you choose to involve corporate lawyers at an early stage so that they are able to provide guidance on rules and regulations as well as help with strategic planning. Many times, the commercial requirements of the business may not be in accordance with what is allowed by Australian law. Hence, while negotiating, commercial lawyers can offer expert advice on a wide range of relevant issues that may need to be considered. Some important considerations are explained below:
- Improved understanding of laws that govern unfair terms and conditions between businesses and customers
- Information with regard to credit, loans and debt among business partners
- Advice regarding protection of data and freedom of information
- Actions that should be taken in the face of breach of contract, insolvency or bankruptcy
- Actions that should be taken in the event of internal disputes and corresponding steps to safeguard the business from adverse consequences
Commercial contracts made between parties ensure that the parties are aware of the details, terms and conditions and agree to follow the agreement in case differences of opinions arise at a later stage. In addition to protection from expensive and long-drawn litigation, agreements also help partners set out goals and actions geared towards the success of the business. As a business owner or partner, you are better placed to work out the finer details, understand your obligations with regard to payments, debts, services, earnings and penalties. A clear-cut and legally water-tight contract helps ensure that no partner can claim ignorance of the terms and conditions that govern the running of the business.
In the old days, business used to be done over a handshake or verbal commitment. Unfortunately, oral agreements no longer hold up under legal scrutiny in a court of law. The complexity of commercial agreements taken together with rules and regulations, disputes, accounting procedures and litigation make it advisable for Australian businesses to have a written contract in place. Reliable corporate lawyers can help minimise the likelihood of fraud and prolonged internal disputes.