What Every SME Needs To Know About Commercial Contracts

Here at Burgh Thorpe Solicitors in Peterborough we have worked with a wide range of SME businesses. Our commercial contract lawyers meet with a lot of business owners that are unsure about their commercial contracts and the importance of them. In this blog post we share what every SME needs to know about commercial contracts.

If you need help with commercial contracts for your business, speak to our small business legal experts in Peterborough. We will be able to help with any queries you have or help draft a contract to protect your business and prevent costly disputes.

What is a Commercial Contract?

A commercial contract is a legally binding contract. It is between two or more parties, and it outlines the rights and responsibilities of each party. There are many different commercial contracts used within SME businesses. These will include supplier agreements, terms of business, business transactions, employment, partnerships and more.

Why are Commercial Contracts Important?

A written contract is in place to avoid misunderstanding and potential disputes. Without a written contract, both parties are relying on trust and verbal agreements. With a professionally drafted commercial contract in place, each party’s obligations are clearly defined. This helps to reduce the risk of disputes. The contract will lay out payment terms and timelines. This means that you have the legal protection if something goes wrong.

What are the Key Elements of a Commercial Contract?

There are key elements that every commercial contract should include. For example, the parties involved, including their full names and addresses, should be stated in the contract. Within the terms and conditions, the core terms of the agreement must be started. This includes what is being provided, as well as timelines and responsibilities. The contract must include payment terms too, stating when and how payment should be made. It should also state any penalties for late payments.

The termination clauses should be included in the contract. This states the conditions in which the contract can be ended by either party. Your contract should also involve liability and dispute resolution. You need to include how disputes will be handled and any limitations on liability.

Need legal assistance drafting commercial contracts for your SME business? Speak to our commercial contract solicitors in Peterborough to protect your business now.