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What You Need to Know Before Drafting Commercial Contracts

As a business owner, you will likely find yourself needing to draft a commercial contract at some point. It is important to understand the basics of contract law and what clauses and tactics you will need to consider when drafting a contract. Our Fort Lauderdale business law attorneys explain what you need to know before drafting a commercial contract.

Parts of a Commercial Contract

Regardless of the size of your business, you will need commercial contracts to make arrangements with multiple parties. Whether you start a new employee relationship, hire a new vendor, or lease a new office space, your business relies on contracts to ensure the success and protection of your company.

There are various elements a commercial contract should include to ensure it protects your business. We list some of the following below:

  • Identify Parties Involved in the Agreement: Your commercial contracts should identify the parties involved in the agreement. When drafting a contract, you need to make sure that you write every party’s legal name correctly.

  • Rights & Obligations: Your commercial contract should clearly define the rights and obligations of each party in the business arrangement. After reading the contract, every party should clearly understand their responsibilities.

  • Provide a Dispute Resolution: When going into any business contract, every party should prepare for a possible dispute. Business disputes are common, so you and the other parties should come up with a dispute resolution plan in case issues were to arise. The commercial contract should be used to determine where the fault lies.

  • Include Clauses that Protect Your Business: Starting a business agreement with other parties could put your business at risk if you don’t include confidentiality clauses in your contracts. You can also include indemnification clauses or any other means to protect your interests and minimize risk from dealing with other parties.

Drafting a commercial contract is a complex process. To ensure that your business is protected, get the help of our team at Stok Kon + Braverman when drafting commercial contracts.

Reach out to our dedicated team of attorneys today at (954) 874-8870 for legal solutions tailored to your unique goals.