Commercial Contracts covers range of business activities, including the sale or purchase of goods, provision of services etc. Check out the most common types of commercial contracts.
Commercial Contract is a legal document contains clauses that should be abide by both the parties. This document should be formed with the help of best commercial contract lawyer in Perth It covers a wide range of business activities, including the sale or purchase of goods, provision of services, licensing agreements, distribution agreements, joint ventures, partnerships, and more.
The most common types of commercial contracts are as follows:
1. Purchase and Sale Contracts
Purchase and sale Contracts are extremely popular in the commercial space. These contracts highlight how one party has agreed to purchase goods from another. In a purchase and sale agreement, the type and amount of goods must be mentioned.
It’s also crucial to mention the terms and conditions of the payment, including the amount to be paid, the mode of payment, and the date and time. Additionally, the contract should state what would happen if the goods were unavailable. Finally, the legal document is bound to mention what would happen if a dispute arises between the two parties.
2. Distribution Contracts
A commercial contract associated with transportation usually concerns organizations involved in logistics, transportation, and even advertisement. The distribution contracts specify how goods will move from production and reach the end consumers. A goods distribution Contract will clearly
mention the responsibilities of the distributor and the production company.
3. Service Agreements
A service contract is created when a particular party agrees to offer services to another. For instance, your business might have a service contract with a cleaning company to wash your business premises once a week. The contract should mention the basic requirements, liabilities of the parties, and the legal consequences of failing to follow the agreed terms.
4. Non-Disclosure Contracts
A non-disclosure contracts helps establish trust and protect business secrets. These legal contracts are created between the owner of confidential information and the people with access to that secret. Apart from safeguarding confidential information, non-disclosure agreements are also used to protect patent rights.
5. Intellectual Property Assignment Contracts
An intellectual property assignment agreement provides information about intellectual property ownership. These agreements are often used in the professional space for protecting developments and innovations. They are also necessary for transferring intellectual property rights to other parties. An intellectual property assignment contract is useful for the transfer of intangible assets like trademarks, copyrights, and various trade secrets.
6. Partnership Contracts
A partnership contract is useful for specifying the rules and circumstances related to the connection between two company partners. The contract will mention the duties of each partner in the business as well as in terms of their ownership interests.
A partnership Contracts is often formed between more than two corporations or people. These legal documents are perfect for defining the business relationship between two partners.
7. Franchise Contracts
A franchise Contract is useful for legally binding franchisees and franchisors. These contracts define the expectations of the franchiser from the franchisee. They also mention how the firms must be operated and various other details. The contract also ensures that the franchisor is providing legal consent to the franchisee to use the company or brand name.