Commercial contracts: Learn more and manage well
On Behalf of McNabb, Bragorgos, Burgess & Sorin, PLLC | May 2, 2022 | Business Litigation
Residents of Tennessee as well as others who live in Mississippi, Arkansas and Kentucky may want to learn more about commercial contracts and how to manage them. These agreements between you and others may involve a specific service or goods. The contract may mention specifics as to what services or goods have provision and the money involved in providing these goods or services. You can manage them if you know the terms and most common areas of these contracts.
What happens when someone does not hold their end of the agreement? There may be a breach of this contract, causing frustration and loss of time and money to a business. However, this disruption may not be necessary with a good inclusive commercial contract.
What are the more common types of commercial contracts?
There are various types of contracts when engaging in commercial work. You may have involvement with one of the following:
NDA – Non-Disclosure Agreement
LOI – Letter of Intent
PSA – Purchase and Sale Agreement
SLA – Service Level Agreement
The NDA protects trade secrets while the LOI makes sure all parties are on the same page. The PSA shows the price and goods and is especially helpful in repeat purchases. The SLA may help manage expectations as it defines quality, delivery and response time.
What are some common clauses?
There are some important things to include that help prevent disruption or even business litigation matters. These include:
- Confidentiality for sensitive information
- Dispute resolution
- Restitution or damages
- Help with third-party damages
- Jurisdiction when it comes to global alliances
- Termination process
What is managing of these contracts?
You may need to create the original template as well as review and negotiate a new agreement. Being compliant to the terms is important, and you must know your obligations and review them. For example, what is the performance in comparison to the promise by your partner or partners? Will the contract have renewal, or will it have termination when it expires?
Commercial contracts contain certain terms when written and need managing afterward. Disputes can arise, so the best contracts anticipate issues before they divide partners.