Drafting and finalising business contracts, such as sale of goods, or non-disclosure agreements for employees or suppliers, can be time and money-consuming. AIO Legal Services will save your time and money by creating your contracts and other legal documents for your business, such as employment contracts, non-disclosure agreements, independent contractor agreements, and much more.
Key questions that AIO Legal Services considers when drafting a business contract or agreement
What is the reason behind the contract?
Who is the other party to the contract?
What are the rights and obligations of each party?
How long does it last?
Can it be terminated for any reason or at an earlier stage?
What happens if there is a breach?
The general standards that AIO Legal Services follows in drafting a business contract or agreement
Introduction
The introduction of a contract lays out the basis for the agreement and describes its purpose.
Recitals
A recital is a statement that is not part of the operative part of the contract but explains what the contracting parties are doing.
The term “recital” comes from the Latin verb that means to recite. It usually appears at the beginning of a contract before the body, often followed by the word “Whereas….”.
The recital is often used to set out background facts about the parties and their negotiations or transactions. It does not have any direct legal effect. It simply explains what is going on. However, the recitessentialortant because it provides context for the rest of the contract. It can also help courts and individuals to interpret terms in contracts that are unclear or ambiguous.
Definitions
It is an important area in any contract. We use this section to define particular terms in a limited number of words to broaden or narrow the meaning of that term. A good definitions clause makes the interpretation of any contract easier, the provisions more concise, and reduce ambiguity.
The first letter of the defined term is always capitalised. If the term consists of two or more words, the first letter of each word should also be capitalised, except for conjunctions and prepositions (e.g. and, or, on, in, under, with). Most serious breaches occur due to the lack of definitions; we always give great attention to this part.
Conditions precedent
These are the requirements or events that must be fulfilled before a contract comes into force.
For example, some contracts may include a condition precedent that says the contract is binding only after the release of certain debt or complying with a specific inspection.
Conditions precedent clause is often used in contracts because it protects the parties by making sure the Agreement is binding only after specific requirements are met. Unlike other provisions in the contract, a breach of this clause would make the whole contract never existed.
Consideration
A consideration clause is the part of a contract that states the compensation or benefits each party will receive upon signing the contract. This clause ensures each party receives something in exchange for what he gives. The consideration clause can be short and straightforward, but it should clearly state what each party receives from signing the contract and the way in which they will receive their consideration. A typical consideration clause might read:
“For good and valuable consideration, receipt of which is acknowledged, we agree to fully perform all obligations stated in this document.”
Warranties
A warranty is a promise that something is of a certain quality or standard or that it will work as expected. For example, if you purchase an item, the seller may promise that it will continue to work as expected and will not break down. Most sellers and manufacturers provide warranties for their products and services.
In contracts, warranties are often provided by one party to another. For example, if you sell your car to someone else, you may promise that the engine works well and has no defects or that there are no leaks in the roof. These would be examples of warranties.
Technical Provisions (Boilerplate)
The technical provisions, also known as the boilerplate, are the remaining parts of a contract that are not specific to the agreement. These include the force majeure clause, amendment and assignability clause.
Confidentiality
A confidentiality clause, also known as a non-disclosure clause, outlines that information cannot be shared outside of the agreement. It is utilised by businesses to ensure the protection of their proprietary information and trade secrets. Typically, a confidentiality clause can be divided into two main sections:
- Confidential Information: This section will provide a list of protected information (i.e., what is confidential). It may also provide an exclusion for information already in the public domain or independently developed by one of the parties.
- Nondisclosure Obligations: This section will outline how each party is required to protect the confidential information they are privy to under the contract. Additionally, it may set procedures for disclosing confidential information to employees, consultants or other third parties who need access to the said information to perform their duties under the contract.
Termination
Which is the clause that allows either party to terminate the contract under certain conditions. Most termination clauses include details such as when a party can end the contract and what happens if one party violates the contract. A termination clause can provide both parties with protection in the event a dispute arises, or one of the parties is unable to perform their obligations under the contract.
In addition, AIO Legal Services also considers essential elements in drafting a contract, such as representations, undertakings, Indemnification, Limitation of Liability, Insurance, Remedies, Waiver of Liability, Governing Law, Legal Capacity and Entire Agreement.
We are specialised in providing top-quality legal drafting, writing, and research services to clients around the globe. With years of experience working with various law firms in various countries, our team has developed a strong passion for legal work and a commitment to excellence. Whether you need a legally binding contract, a legal notice, a joint venture agreement, or any other type of legal document, we have the expertise to draft a document that meets your needs, including:
- Memoranda of Understanding (MoUs)
- Services Agreements
- Non-Disclosure Agreements (NDAs)
- Shareholders Agreements
- Partnership Agreements
- Management Agreements
- License Agreements
- Confidentiality Agreements
- Contractor Agreements
- Consulting Agreements
- Joint Venture Agreements
- Distribution Agreements
- Sales Commission Agreements
- Stock Purchase & Sale Agreements
- Manufacturing & Supply Agreements
- Franchise Agreements
- Agency Agreements
- Payment Agreements
- Equipment Agreements
- Litigation & Settlement Agreements
AIO Legal Services can help your business save time and money by creating legal documents, such as contracts and agreements. Some key questions we consider when drafting a business contract or agreement include the purpose of the contract, the parties involved, the rights and obligations of each party, the duration of the agreement, the conditions for termination, and the consequences of a breach. In order to provide clear and concise language, we also include an introduction, recitals, definitions, conditions precedent, consideration, warranties, and other necessary provisions in our contracts. We prioritize ensuring that all legal requirements are met and that the contract accurately reflects the needs and interests of our clients.
We believe in offering competitive pricing while ensuring customer satisfaction and we are happy to receive your enquires at anytime.