LEGAL DRAFTING & CONTRACT MANAGEMENT

Simply said, a business is the sum total of the “transactions” happening in its name. Transaction equates to  relationships and money. Written agreements, contracts, terms and conditions, policies are the backbone of a business. You can not afford to be careless here because the price of being so is too high which can even wind up your business. 

 

In business, every transaction has two implications - commercial and legal. The commercial aspect is the money being transferred in exchange for something of value. The legal rights and obligations of the parties involved are created through the written agreements, contracts, terms and conditions, policies, etc. You have in place. Unless the legal documents you create capture these rights and obligations rightly with clarity of purpose and accuracy, you will  easily be a victim and at the mercy of the other party.

 

It is reported that the root cause of 67% of global business litigation originates because of badly written contracts or poorly worded agreements, terms, policies, etc. Drafting legal agreements and contracts is an art as well as a legal science. A combination of simple legal English coupled with appropriate knowledge of laws and rules produces great contracts.

 

Understanding that every business deal has specific objective and purpose to serve and bind the parties at different levels is the first step to a well written legal contract. Drafting a contract or agreement is a craft that requires sufficient knowledge of the applicable rules and laws together with the legal insight and the ability to express the intention of the parties in simple and clear legal terms.

 

Strong and healthy ‘relationships’ originate from clear mutual understanding captured in written contracts between the parties taking care of each one’s rights, duties, obligations, and liabilities. Whether the ‘transaction’ you enter in to is with your customers, clients, vendors, distributors, employees, outsourced workers, partners, investors or directors, you need to put the terms in writing using the right legal terminology and phrases in simple and clear language.

 

Customized Contracts are an absolute must for the success of every business deal. Whatever be the nature of the deal - be it an employment or a partnership agreement, a joint venture, franchisee, distributor, data management or any other business arrangement agreement, it should legally bind the parties in the right way.

 

Reviewing and vetting of contracts of other parties with whom you are entering into business is equally important. Before signing on the dotted lines of the other party's terms and conditions, you needs to understand your rights and obligations and other terms upon which you will be doing business.

 

Remember getting into a contract is easily done. But coming out of a contract scot-free may not be that easy especially when you have not clearly understood the hidden legal implications clearly and made necessary corrections before signing the contract.

 

Techno legal documents wherein in technical and legal terms mix and mingle freely. Unlike the usual contracts, these legal documents are in a different league which requires different set of skills and expertise. Examples are Software Development Agreement or The Terms and Conditions of Cloud Service.

 

You can confidently entrust all your legal drafting of contracts, agreements, business communication letters, legal notices, and reply notices to the Biz Legal Guard team of experts. We are well versed in legal drafting.

 

If you are serious about your business, you need to be aware that:

 

There is no ‘one-size fit all’ contract. Every business deal being different, it essentially needs its own sets of terms and conditions to legally bind the parties.

 

Similarly, you also need to be careful about the contracts and agreements you enter into and never commit the following mistakes and be penny wise pound foolish.

 

1. Copy Paste somebody else contracts/polices/terms of use etc.

2. Rely on contract templates freely floating on the internet which does not safeguard your specific business needs, interests and assets.

3. Sign blindly without having a thorough understanding of your commitments, obligations, duties and liabilities, the term, the termination clauses, consequences of termination, confidentiality and non-compete terms etc.