Commercial agreements cover a wide range of agreements that a business may choose to enter into. Common examples of commercial agreements include:
Although each commercial agreement is unique, there are common clauses that each commercial agreement will include in order to protect the interests of those entering into the agreement. These clauses can include:
Disputing an Agreement
A common form of dispute in NSW in relation to a commercial agreement is how to interpret a certain clause in the agreement. Although an agreement has been drafted between two (2) people, they may have very different understandings as to how a particular clause in the agreement operates, and the effect that the clause has on their rights and responsibilities under the agreement.
Before you sign any agreement, it is important that you obtain independent legal advice as to your rights under the agreement. This may help to minimise the need to dispute the agreement as you both understand how the agreement is to operate.
A commercial agreement also operates the same way as a contact. Accordingly, the elements of a contract must also be satisfied to determine whether the agreement is enforceable. The elements are:
- Acceptance; and
- Legal Capacity
An agreement can only be signed by a director or secretary, or a person authorised to sign on their behalf. It is important that you verify that the person who signs the contract is able to do so in their respective capacity. If they do not have authority to sign the agreement, then this may lead a Court to find that there was no valid agreement.