Commercial Law Specialists can help you understand Terms and Conditions
You may wish to start or operate a business with multiple partners as this often brings its own set of advantages to the business. Commercial lawyers can help you understand the legal jargon as well as terms and conditions mentioned in business agreement. Interpreting the different conditions and stipulations will help you understand your position as a partner. Businesses owned by multiple partners (as opposed to a sole proprietor) enjoy certain benefits. For example, the business may be able to borrow a greater amount of money from lending institutions (like banks) compared to what a sole proprietor may be able to borrow on his or her own. Similarly, risks tend to be spread out among partners rather than incurred by a single individual and moreover, you can share management and control with other partners.
However, it is not practical to agree to all the terms and conditions orally (In cases of breaches of contract etc and in the absence of a formal contract, these situations could be difficult to resolve). People may often forget verbal conversations and this is why it pays to have a contract in place. The business agreement is a formal, written contract that clearly explains the expectations of all the parties as well as describes actions in the event of other eventualities. Rather than simply agree to an oral agreement, a written business contract is legal and legitimate and it’s crucial that you understand the terms that you’re agreeing to. In addition to containing clauses, terms and conditions that will be honoured in an Australian court of law, business contracts also help safeguard the resources of the business from fraud.
Professional Legal Advisors will tell you that you may require a business contract in any of the following situations:
- If you happen to be a purchaser of goods or services
- If you plan to sign a rental or mortgage contract
- If you wish to supply goods or services as a retailer or wholesaler
- If you plan to implement a business agreement involving other partners or business ventures
Business agreements also contain information regarding potential business situations (such as bankruptcy or breach of contract, sale of shares etc) as well as solutions to each problem. Business contracts vary significantly across businesses and no two contracts are identical. However, a seasoned commercial lawyer will help you understand the information clearly so that you can make informed decisions. While everything may go smoothly for some time, lack of understanding may lead to confusions and stress at a later stage when the business faces problems. Please note that under Australian law, it’s not mandatory to formulate a business contract. But having a watertight agreement drawn up by experienced legal counsel provides a reliable foundation for the future of your business.
