Commercial Contracts and Its Importance
A commercial contract puts either or one of the parties into a binding position to do an activity or not to engage as decided in the agreed terms. Commercial contracts mostly deal with the:
- Purchase or sale of products
- Licensing or products, processes or use of premises for production or service
- Buying, selling, or licensing of intellectual property rights
Importance of commercial contacts:
- Commercial contracts offer the advantages of enforcing the terms of the contract without any misunderstandings since they are agreed beforehand. This might lead to a longstanding relationship between the parties.
- They allow the contracting parties to maintain the strict confidentiality of the transactions.
- They will offer to provide the stricter payment terms, which either of the parties are bound to follow without any limitations.
- Contracts that are processed in time and precise terms and conditions might help the companies to generate more revenue.
- They also serve to avoid complex and costly litigations since they are the tools of clear terms and understandings.
- Further, being a meticulously verified and signed document (either physically or digitally), it is legal proof of the agreement and might help in the event of disputes, misunderstandings, or complaints.
IPLF for drafting commercial contracts:
Our team comprises highly skilled and trained legal professionals to assist in the negotiation and drafting of commercial agreements, which not only benefit the parties but also prevent unnecessary misunderstandings and disputes.
Author: Govindhaswamy Srinivasan, a Principal Associate – Patents at Khurana & Khurana, Advocates, and IP Attorneys. In case of any queries please contact/write back to us at firstname.lastname@example.org