Commercial contracts are crucial when two or more parties or businesses want to do some business together which can include money, products or services. It’s a common thing in the business world that you can’t run a company while working alone and eventually you will need to involve some other company too. This way when you do a project with another company and there are hundreds of people involved with different cultures or countries, it’s important to make sure that everyone obeys the conditions and rules that the both companies are agreed on the initial level. The main purpose of this contract is that it bound either party to stay inside the limits and not violate any part of the contract. Here is preview of this Commercial Contract Template,
Essential elements of a commercial contract:
this point states that what the one party has offered to the other one. It contains all the agreement conditions and the mutual profit they both will gain. If the other party wants to change any condition or wants to add something, they do it at this point.
after both the parties have changed the conditions of the contract according to their needs, here at this point they agree to the contract and it’s renewed conditions and points.
- Intention of legal consequences
the purpose of this point is to make sure that the both parties know that by signing this contract they are binding themselves to a legal contract and if any of them goes against the conditions of the contract, the other party have all the rights to sue him or them in the court. In the court this contract can be used as evidence against the person who violated it.
this point explains what the both parties are agreed to give the other in return. For example, if one party is agreed to provide some specific services, then the other party must agree to pay for those services in form of money or any other thing like products or even different services in the return.
How to create/prepare a commercial contract:
- As in commercial procedures there are hundreds of documents are involved, you should name this document as “contract” or “agreement” to distinguish it from other documents.
- Make several sections of the contract and explain each condition in a different section to make everything clearer.
- Provide each and every detail about the parties that are involved in the contract. Put their names, company names and contact addresses.
- After that it’s time to state the key purpose of the contract which enlists the mutual business the both parties are going to do together.
- It’s essential that you provide the starting date of the contract and all other deadlines that involve milestones.
- If the contract is expired, you should state all the renewal conditions.
- State all the rights each party has if the other party violates any condition. If the agreement involves legal departments, you can also state that if anyone violates anything, others have all the rights to sue him in the court.
- Provide all the termination conditions that expires the contract and the agreement should be considered cancelled.
- Put signatures of both parties at the end along with their thumb impressions.
Here is download link of this Commercial Contract Template,