A commercial contract is an agreement between two or more entities where they exchange services are goods. By their very nature, this is usually takes place between companies and businesses. However, there can be commercial contracts between a corporation and individuals for providing services.
Whether it is through signing up shareholders, distributors, resellers or by executing service provider agreement, businesses uniformly need well-structured commercial contracts to support them grow into new markets. When outlined adequately, contracts are also set mechanisms by which businesses can obtain their revenue streams and control significant expenditure.
Why Commercial Contracts are Vital For Your Business
Well-drafted corporate commercial contracts empower a business to begin legal proceedings upon any kind of infringement or breach of the business agreements.
If there is a contract signed between two parties and one of the involved party declines to carry out his part of the obligations, then breach of contract takes place. In case of breach of contract, the law lets the other non-breaching party claim a remedy for the infringement. This remedy is usually awarded in the form of money the non-breaching party acquires.
The idea of damages for a breach of agreement is to put the non-breaching party in the place he would have been if the agreement was not breached. This is called the benefit of the bargain, and it sets the limit of damages. Damages are just one of the many remedies accessible to the non-breaching party when there is a breach of contract occurs.
Hiring a Lawyer for Your Commercial Documents
Narula and Narula can be your legal retainers and help your business with all perspectives of corporate commercial contract documentation- drafting, review, and negotiations.
Our experienced team of lawyers will help you step by step while mitigating any risks associated with corporate commercial contracts.