When conducting business, often commercial contracts will come into play. A commercial contract can loosely be defined as any contract that generally relates to some commercial issue, and is signed between two parties. A key difference that makes a commercial contract stand out, is that these are considered by UK law to be legally binding. Before writing or signing any commercial contract, it is important to be fully informed what they are and when you need them.
Defining a Commercial Contract
The parties that make up a commercial contract are widely defined, and can include two businesses signing the bottom line, or exist between a business and the customer. While the parties are varied, the purpose behind the contracts that are drawn up are upheld by the law.
It is important to understand the details within these contracts and what can be enforced in terms of UK regulation and law. Because they are legally binding, it is a serious offence for any party to break the bounds of the contract.
Some examples of a commercial contract includes two businesses planning to work together on a new venture, where they will share responsibilities, duties, liabilities, and so on. A contract is often brought into these situations in order to formalize the decisions that were made.
Other uses for commercial contracts occur between the business and the consumer. These contracts give both parties conditions to follow, which are also enforced by law.
If you feel a commercial contract has been violated, we recommended seeking qualified lawyers to advise you and offer legal information about of commercial contracts before seeking redress in the court system. The laws behind commercial contracts are especially complex, and should be navigated by a professional. If your commercial contract case involves international boundaries, it is especially important to acquire a lawyer for guidance, due to the exponential complexity of international contract law.
When is the Right Time for a Commercial Contract?
In terms of commercial contracts, generally they include at least one business entity as one of the parties, though it can also be between two commercial parties as well. On the other hand, commercial contracts are rarely, if ever, drawn up between two private parties.
In modern times, commercial contracts are a part of our everyday lives, and as consumers, we engage with them for everything from buying mobile phones to taking any sort of public transportation. Some more examples of commercial contracts are as follows:
● An organic restaurant and a farm that provides ingredients will want their supply agreement drawn up in writing, in case future disputes require them to go to court for a fair trial.
● Instead of two businesses working together, a customer might sign a contract in order to purchase a new car, agreeing contractually to a payment plan or maintenance schedules.
However, unlike these two examples, personal disputes that do not involve commercial interests, such as a parent setting up a weekly chores agreement with the family, are not considered commercial contracts. These contracts cannot be taken the the court system when one of the parties have a claim or dispute.
Facts about Commercial Contracts
While the existence of commercial contracts is a fact of today’s society, any subsequent requirement for legal action may bring unknown complications. It is advised to take on legal expertise in these cases, but there are some basic facts about commercial contracts that all parties should be aware of when considering a dispute.
● After a breach of contract, UK law regulates a limitation period of six years.
● In most cases, as the court system will attempt to decipher commercial contracts in terms of the intent behind the terms and conditions.
● Poorly written, or even unwritten, commercial contracts are not well suited to either party, as it is difficult to interpret intent in a fair way.
Due to the widespread use of the internet along with globalization, international boundaries are being crossed more and more often with commercial contracts. These are more common, and incredibly complex, requiring an adept lawyer to properly handle any disputes.
Commercial contracts are prevalent in almost every aspect of our lives, both as professionals and consumers. However, due to their complex legal nature, seeking professional advice is essential to handling any legal issues in the best way possible.