Take control of your contracts

For any ambitious business, the contracts you sign define your customer and supplier relationships.  When all is going well that much discussed document will be gathering dust in your filing cabinet.  But if the terms of the deal ever come into question it soon becomes a vital point of reference and ultimately could be argued over in court. 

A small amount of time and money invested at the outset getting the right contract agreed, could prevent a far higher expenditure and wasted management time later on. 

But how can you ensure the contract works in your best interest?

Firstly use a specialist commercial solicitor. At Tolhurst Fisher our commercial solicitors have wide ranging experience in commercial agreements and contracts of all types, helping you from the initial discussion, drafting the agreement and all the way through to signature.

Decide what the nature of the agreement is going to be and keep this in mind at all times.  The contract is a formal record of the understanding with the other party, so concentrate on the actual deal agreed and how both parties plan to operate.

If your company has distinct operating divisions or subsidiaries, make sure the correct part of your group is party to the contract.  This will help to keep any liabilities distinct.

What products will be bought or sold?  What services are to be provided?  How frequently?    At what price?  Make sure that these are clearly stated so someone unfamiliar with the arrangement can easily understand what is meant to happen.

Late payment is a sad fact of commercial life.  This must be dealt with, so make sure the contract states when payment is expected and allows you to charge interest. 

What if the goods bought or services provided don’t meet your expectations?  The contract should state what your rights of redress will be.

What if you just don’t like the way things are working out?  If you are tied into a fixed term your position will be more difficult compared to the flexibility of being able to call it a day without any specific reason.

We will guide you through the more technical clauses by explaining their meaning and showing how they will affect you, based on current commercial practice and law.

And finally, review your contract at regular intervals.  Law varies over time, and business relationships change, so you must make sure that the contract remains up to date if it is to serve to well when you need to rely on it most.

For more information about commercial contracts contact the commercial department at Tolhurst Fisher.