Though it may sound strange, it is often a problem in the business world that parties fail to implement a properly constituted and executed written contract between them.
A contract is the essential element of any agreement, whether it is for a sale, purchase, employment or arrangement. It regulates the very foundation of the agreement between the parties and sometimes more importantly, governs what happens if it all goes wrong.
A good written contract is advised even where the agreement is formed and based on a relationship between a friend or close business colleague, despite there being trust in the relationship as you can never predict when a relationship will go wrong!
This is important if the other party does not fulfil its side of the bargain. You will then have a contract to rely on.
A good amount of thought should go into drafting the contract, and often it can take several attempts before both parties are happy with the final contract.
Various legislation will apply to the contract being drafted and which Act or Regulations will depend on the parties concerned and the goods/property the contract relates to. For example, a commercial property contract should incorporate the Land Registry Prescribed Clauses, the Landlord and Tenant Act 1954 (as amended by The Regulatory Reform (Business Tenancies) (England and Wales) Order 2003), and the Standard Commercial Property Conditions (second edition), just to name a few.
Aside the legislation, the contract should also record the terms that will apply before, during and after completion of the contract. Most importantly, the contract should be correctly dated and signed.
At Lawdit, we have trained Solicitors who can help you draft the perfect contract for you, which will meet the rules and regulations that specifically apply to the nature of the contract in question.