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5 Reasons for Hiring Good Lawyers to Draft Commercial Contracts

Gone are the good old simple times when people rarely locked their homes in India, and business deals were sealed over a handshake or a cup of tea. Nowadays, honoring oral promises, especially in significant financial transactions, has become increasingly rare. This shift underscores the importance of legal documentation in today's commercial world. The Indian Contract Act of 1872 recognizes both oral and written contracts, but relying solely on oral agreements can be risky in legal disputes. This article explores why hiring skilled lawyers to draft commercial contracts is crucial.

WHAT IS A COMMERCIAL CONTRACT?

A commercial contract is a legally binding agreement between two or more parties aimed at establishing a commercial relationship. Such contracts enforce obligations, representations, warranties, and liabilities agreed upon by the parties. They serve as critical references for organizational policies and evidence in potential disputes. Examples include Master Service Agreements, Agency Agreements, Joint Venture Agreements, and Non-Disclosure Agreements.

WHY HAVE IT IN WRITING?

Beyond legal recognition, written contracts offer several benefits:

People Change

• Change of People: Parties involved in commercial relationships may change over time, leading to misunderstandings or disputes if original agreements are not documented.
• Change in Time: Societal and behavioral changes can affect how parties perceive and honor agreements.
• Legal Changes: Evolving laws can render previously acceptable practices illegal, highlighting the need for updated contractual terms.
• Memory Fading: Successors may not uphold agreements made by previous generations, leading to disputes due to forgotten or misunderstood terms.
• Changing Relationships: Commercial dynamics evolve, challenging the longevity of relationships assumed to be eternal.

WHY HIRE A GOOD LAWYER FOR DRAFTING A COMMERCIAL CONTRACT?

Engaging a competent corporate lawyer offers several advantages:

Selecting the Right Contract Type

• Experienced lawyers select appropriate contract types tailored to specific commercial needs, ensuring all essential legal aspects are covered.

Identifying and Sealing Loopholes

• Lawyers identify and address potential loopholes that could expose parties to undue risks or liabilities, ensuring comprehensive legal protection.

Negotiating Favorable Terms

• Skilled lawyers negotiate contracts that balance rights and liabilities, protecting their clients' interests while promoting mutual acceptance.

Enforcing Contractual Obligations