You must know who you are doing business with. Do not leave room for any ambiguity. Clarity is required, particularly in the instances when matters degenerate to the point where parties need to bring a court action.
The person who signs the contract must have the power to do so; he must have been entrusted and empowered to be the legal representatives of the business.
All agreements must have clear terms agreed before the appending of such and the sealing of the agreement. Agreements should also contain termination rights and the circumstances under which such may apply.
For example, the ownership of a building which you let out does not immediately give you the right to eject the tenants. The ground and rights to do that must be clearly spelled out. If you happen to have tenants whom you think were sent by hell, your saving grace and grounds for easy ejection would be the previously written terms.
In law, a consideration is something in the agreement that suffices to make a formal or informal promise legally binding. A consideration is some value given in exchange for the promise. Every agreement must contain a consideration, a legalese: what is being given for the services or product being delivered, the amount agreed to be paid for a service or product.
An obligation is a legal bond (vinculum luris) by which one or more parties (obligants) are bound to act or refrain from acting. Natural obligations do not require the law for it to be enforced, the onus rests on the obligor. But with agreements based on civil laws, compliance could be compelled by the courts.
Make All Businesses Legal so, with party obligations, what are the obligations? For example, when will it be performed? Who will perform what? What has been agreed must be clear to all parties.
A limited liability is the degree of protection which covers the owners of a business. It is wiser to operate your business as a limited company.
The liabilities that may be incurred will only apply to the assets and undertakings of the company.
Your limited company exists as an entity. Its issues cannot be extended to your person, unless otherwise stated in the terms of the business.
The world of business is constantly changing. Businesses face the danger of their concepts being stolen, copied or plagiarised.
Frivolity in the method of information management has cost many in future earnings.
This makes it necessary to demand that information shared by the other party cannot be shared or passed to those who do not have a necessary connection with the business.
It is important to state which law governs the transaction. This means that in the event of needing judicial redress, it may only be found in the nation which forms the basis of your agreement.
Looking to apply governing law is gradually becoming more important as the world becomes a global village and we connect via the World Wide Web.
Business agreements sometimes go awry, transactions which were previously agreed amicably may become tedious and difficult.
Providing an agreed method of resolution ahead of the issues is a pointer to good business practice.
Dispute Resolution agreement can serve as a possible safeguard from wasting time and resources.
Make All Businesses Legal in Court. After all, houses are built with natural disasters in mind. Such agreement would need to be in the body of the legal agreement and amicably agreed to before accenting signatures. The body of the agreement needs to indicate the country where such dispute may be resolved.
In the course of reaching an agreement over a business, project or various kinds of transactions, it is possible that various agreements in principle would have been written, spoken or communicated in one form or the other.
An entire agreement clause is intended to ensure that the parties are only bound by the final agreement signed, not the content of various drafts or conversations which took place.
The party signing must be the one who entered into contract. If someone else signs on behalf of the company, such persons must be a director or authorised representatives who have the power to bind the company to such agreement.
All rights reserved – Matthew Ashimolowo
Ashimolowo, M. (2017) 12 Major Steps For Perpetuating Wealth. United Kingdom.MAMM.