Why a Commercial Lawyer should always review your business contract

December 20, 2020

commercial lawyer

Protect your business with the right advice from a Commercial Law Expert

Business contracts are one of the most important documents that your business needs to handle. They can outline the rights of employees or other companies that do business with you. When any rules, guidelines, and actions are put into question, it’s a business contract that your business can refer to for guidance.

A business contract is a legally binding document which will set out the terms of an agreement. It can also cover the details of a product, services, or other payments that will be exchanged under an agreement. Business contracts can also include provisions with legal remedies that can be used in case one party does not meet their contractual obligations.

When legal action is taken against your business, it’s a business contract that you use for reference. It’s a complete document that outlines your business’s rights. So when any of your rights or actions are put into question you can refer to this document to safeguard you and your entire business.

When it comes to writing up a business contract, it’s best left to legal experts. A Commercial Lawyer is a perfect example of a legal expert who is qualified to write up and review a business contract. When a contract is written up correctly, it can help protect you and your business from future legal issues and challenges that may arise.

Risks and issues

A business contract may seem bulletproof to you. But without the review of a legal professional, there’s just no way of knowing. A good Commercial Lawyer will be able to identify any legal risks and items that can cause issues within the contract.

Commercial Lawyers are trained to interpret business law and what implications they will have in practice. They can easily snuff out when a particular item may be deemed ‘unfair’ and void under consumer laws in Australia. If you are the one signing a contract created by another party then your Commercial Lawyer can also warn you of any clauses that may not look right.

A common example is a manufacturer’s agreement. If you’re a business reselling goods from another business you want a manufacturer’s agreement will help you establish terms of supply, delivery, payment, and liability. A worst-case scenario would be a supplier not clearly spelling out their obligations for delivering supplies in time for your business.

If a supplier is unaware of the exact delivery guidelines they are supposed to follow there’s a good chance they might not always meet them. This could result in lots of angry customers from your end waiting for products orders that should have arrived weeks ago.

Future implications

A Commercial Lawyer shouldn’t just be assessing the current risks associated with a contract. They should look at how a contract could affect your business in the future too. One of the very first things a Commercial Lawyer should look at is if a contract will automatically terminate at a certain date or continue indefinitely.

So when you sign a contract it could affect your business for years to come. It’s important to understand what obligations you’ll be tied to now and well into the future. These obligations could restrict your business’s trade or what you can claim as intellectual property now and well into the future.

Say for example your business creates software for a client. If the contract you’ve signed stipulates that the client owns whatever you create for them, you may not be able to use the software for future clients. So that IP (intellectual property) will be owned by the client and you won’t be able to use it for anyone else.

A Commercial Lawyer can review your contract and ensure your IP is protected. They can make sure your IP isn’t simply given away so you can continue to use for future clients.

Finding new opportunities

Signing a new business contract can create new opportunities for your business. A good Commercial Lawyer can identify key opportunities that you can capitalise on in a new business contract. Extra clauses or conditions can help you get the most out of a contractual relationship. You won’t know what you’re missing out on until a professional reviews your contract.

Let’s take the example of a startup company. Imagine you’re the owner of this startup and you’re focussing most of your efforts on raising capital. One way to make the most of this time is to negotiate some great deals with investors . When an investor submits their term sheet or proposes changes to a shareholders agreement, pass it on to a Commercial Lawyer with experience with startups.

An experienced Startup Lawyer can help you understand term sheets and shareholder agreements. They can take all this complicated information and explain in simpler terms just what they mean for the future of your business. They can also recommend any areas where you may be able to negotiate better terms and deals.

If your startup has real potential for rapid growth then it’s best to capitalise on it. You need to make sure that contractual terms set out will help your business grow from the beginning. You also want to make sure your interests will be protected in the future

Commercial law support from P&B Lawyers

At P&B Lawyers we already represent a growing list of businesses and corporate clients. Our Commercial Lawyers have the skills and experience to carry out a thorough review of your business contract. We can assist your business with all aspects of a business contract review to help you get the most out of a new deal. Contact our Commercial Lawyers today for assistance with your next business contract.

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