Commercial Contract
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A Commercial Contract is a legal contract that governs the exchange of goods, services, money, or rights between legal parties within a business context.
- Context:
- It can (typically) be executed between businesses (B2B) or between a business and a consumer (B2C).
- It can (typically) be influenced or regulated by local, state, or national Commercial Laws and regulations.
- It can (often) serve to protect the interests of both parties, minimizing potential disputes.
- It can (often) involve detailed negotiations before reaching a final agreement
- It can (typically) be governed by commercial law, which includes regulations on contract law, sales law, and sometimes international trade law when the agreements cross national boundaries.
- It can (often) require the involvement of Legal Counsel to draft, review, and advise on the terms and conditions to minimize legal risks and disputes.
- It can be critical for managing Business Risk, protecting intellectual property, and ensuring compliance with applicable laws and regulations.
- It can (often) include clauses on dispute resolution, confidentiality, and termination conditions to manage potential future disputes and the end of the agreement.
- It can outline specific terms, conditions, obligations, rights, and remedies for the involved parties.
- It can include clauses pertaining to breach, penalties, confidentiality, and dispute resolution.
- It can vary in complexity, from simple Purchase Orders to complex Mergers and Acquisitions Agreements.
- It can be drafted with the assistance of legal professionals to ensure compliance and clarity.
- It can be terminated based on conditions or clauses stipulated within the contract itself.
- It can be (often) be categorized into a Commercial Contract Category.
- …
- Example(s):
- A Lease Agreement where a business rents commercial space from a landlord.
- A Service Agreement where one company hires another to perform specific services.
- A Distribution Agreement where a manufacturer allows a distributor to sell its products.
- A Franchise Agreement between a franchisor and franchisee.
- An Employment Contract between an employer and an employee.
- A License Agreement ...
- A Contruction Contract ...
- …
- Counter-Example(s):
- A Personal Will detailing how an individual's assets should be distributed upon their death.
- A Marriage Contract or prenuptial agreement between two individuals.
- A Rental Agreement for residential property.
- See: License Agreement, Sales Contract, Partnership Agreement, Joint Venture Agreement, Commercial Law, Contract Law, Business Law.
References
2023
- (Wikipedia, 2023) ⇒ https://en.wikipedia.org/wiki/Contract Retrieved:2023-11-19.
- A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more mutually agreeing parties. A contract typically involves the transfer of goods, services, money, or a promise to transfer any of those at a future date, and the activities and intentions of the parties entering into a contract may be referred to as contracting. In the event of a breach of contract, the injured party may seek judicial remedies such as damages or rescission. A binding agreement between actors in international law is known as a treaty. Contract law, the field of the law of obligations concerned with contracts, is based on the principle that agreements must be honoured. [1] Like other areas of private law, contract law varies between jurisdictions. In general, contract law is exercised and governed either under common law jurisdictions, civil law jurisdictions, or mixed-law jurisdictions that combine elements of both common and civil law. Common law jurisdictions typically require contracts to include consideration in order to be valid, whereas civil and most mixed-law jurisdictions solely require a meeting of the minds between the parties. Within the overarching category of civil law jurisdictions, there are several distinct varieties of contract law with their own distinct criteria: the German tradition is characterised by the unique doctrine of abstraction, systems based on the Napoleonic Code are characterised by their systematic distinction between different types of contracts, and Roman-Dutch law is largely based on the writings of renaissance-era Dutch jurists and case law applying general principles of Roman law prior to the Netherlands' adoption of the Napoleonic Code. The UNIDROIT Principles of International Commercial Contracts, published in 2016, aim to provide a general harmonised framework for international contracts, independent of the divergences between national laws, as well as a statement of common contractual principles for arbitrators and judges to apply where national laws are lacking. Notably, the Principles reject the doctrine of consideration, arguing that elimination of the doctrine "bring[s] about greater certainty and reduce litigation" in international trade.[2] The Principles also rejected the abstraction principle on the grounds that it and similar doctrines are "not easily compatible with modern business perceptions and practice".[2] Contract law can be contrasted with tort law (also referred to in some jurisdictions as the law of delicts), the other major area of the law of obligations. While tort law generally deals with private duties and obligations that exist by operation of law, and provide remedies for civil wrongs committed between individuals not in a pre-existing legal relationship, contract law provides for the creation and enforcement of duties and obligations through a prior agreement between parties. The emergence of quasi-contracts, quasi-torts, and quasi-delicts renders the boundary between tort and contract law somewhat uncertain. [3]
- ↑ Hans Wehberg, Pacta Sunt Servanda, The American Journal of International Law, Vol. 53, No. 4 (Oct., 1959), p.775.; Trans-Lex.org Principle of Sanctity of contracts
- ↑ 2.0 2.1 UNIDROIT Principles of International Commercial Contracts
- ↑ Beatson, Anson's Law of Contract (1998) 27th ed. OUP, p.21