Reviewing and Drafting Commercial Contracts
Every business enters into contracts, usually with customers or other stakeholders. Many basic contracts are verbal, but more complex contracts are presented in written form.
Business or commercial contracts should generally be set out in writing to ensure that both the business and clients/customers have their interests protected under common law.
For businesses, it is recommended that a standard contract is drafted which lists any general terms or conditions etc. This standard contract may then be adapted to meet specific needs when the situation requires it.
Contracts are structured with the business specific (operative) clauses at the beginning of the document. So this is generally where the most time will be spent drafting and reviewing due to the important and specific nature of the information found here. More standard ‘boilerplate’ clauses which relate to general legal requirements are found towards the end of the document.
You should be able to negotiate any business specific details, or details concerning money, before consulting a lawyer. A lawyer may be able to assist you in fine-tuning the document, and ensuring that any obligations are met.
Many contract lawyers have specific experience in certain industries or areas of commerce. For example, a franchise lawyer will be able to assist in the drafting or review of a franchise agreement. It is important that you seek advice from a lawyer who has experience with your particular industry or business type.
Contract drafting
Business and commercial lawyers spend a lot of time drafting contracts, as this is one of the main things that businesses require legal assistance with. Commercial lawyers often work with base contracts that they have created for a particular industry, giving them a template for drafting a document that is specific to the needs of a client. Drafting a contract with the assistance of a lawyer ensures that it will comply with any relevant laws and regulations that apply to your industry or business.
It is recommended that you hire a lawyer who has experience with drafting documents relevant to your particular industry, as laws and regulations may differ between industries. Contact LGM Advisors today and we will assist you as we have experience in many industries.
Once your contract is drafted, you will need to present it to the other party or parties for their consideration. Other parties may wish to negotiate the contract’s terms in order to ensure that their interests are appropriately represented. In this case, a contract lawyer will be able to assist you with any discussion or negotiations. Once the negotiation process is complete, your lawyer will be able to review and draft any changes.
It is important to remember that contracts often don’t need to be written in over-complicated jargon or legalese. So a good contract lawyer will be able to draft a document that is clearly written in language that all parties can understand. This reduces the risk of potential disputes over the terms of contract by ensuring that the document is clearly understood at the time it is signed.
Contract reviewing
The process of contract review can be straightforward or difficult, depending on the complexity of the contract and how well it was drafted in the first place. These factors must be taken into account when considering how much time your lawyer may need for reviewing a contract. With this in mind, you should be clear with your lawyer about your expectations, and hire one who is familiar with the type of business covered by the contract.
Generally, lawyers are able to provide contract reviews in the form of either written or verbal advice. Verbal advice is cheaper and takes less time to prepare than written advice, but is likely to be less detailed. It is important to consider your specific needs, such as the complexity of the contract or any time constraints, when deciding which form of advice you require.
When a contract is being reviewed, particular attention is paid to statements regarding provisions or operatives that are business specific. These are usually found at the front of the document. Don’t be concerned if your lawyer doesn’t make changes to the ‘boilerplate’ at the back of the document, as this usually contains conditions that are general to every contract. The section regarding business specific provisions is more important, so this is where any review is likely to be required.