A legal contract or an agreement is not a mere piece of paper for signing between two parties but it protects one business entity with its rights and remedies.
An agreement also create responsibilities, conditions, manners, time limit, monetary issues, etc so that every corner of the agreement is properly sealed failing which it may result unforeseen loses.
A legal contract or an agreement has to be drafted with all sine qua none i.e important limbs as below :
- definitions
- scope of work/service
- obligations / do's and don'ts
- commercial liability
- documentation & invoicing
- termination
- validity
- waiver
- IPR protection
- force majeure
- dispute & settlement
- penal clause
- observation and applicability of law
- Survival cum Protection clauses
- place of performance /supply
- Business Secrets & confidentiality
- non – competitive clauses
- non-solicitation
- non disclosure
- Amendments
- Severance etc
Every agreement has to be drafted with special caution and stereotype drafting may have fatal result.
A legal and valid agreement should have most important ingredients i.e
simplicity
clarity
futuristic
options
definitions
Straight & small sentences
Hence, all the following agreements have to be drafted in terms of specific requirements and nature of supply/service involved therein:
- Service Agreement
- Supply Agreement
- Sale & Supply Agreement
- Technical Agreement
- Franchisee Agreements
- Confidentiality Agreements
- Procurement Agreements,
- Tri-partie agreement
- Joint Venture Agreement
- Authorisation Agreement
- Marketing Agreement
- Job Work Agreement
- Licencing Agreement
- Non Disclosure Agreement etc.
AMLEGALS, a full service law firm, advises to draft every legal agreement by considering each and every aspects of law, rights, scope, liabilities & remedies atleast so that an agreement is not made in a stereotype and loose ended manner.
It is also important to understand that no business entity can afford to face endless litigations and hence it is always advised to opt for an arbitration agreement. Therefore, it has to be ensured that there is an inbuilt provision of arbitration in each and every agreement.
Contract Vetting
Legal Vetting means making a careful and critical examination of documents to be executed in terms of law.
Legal vetting of contracts results a thorough due diligence of clauses of the agreement and also results in ensuring the following:
all safeguards are taken
specific role is defined
monetary security
legal remedy
well defined issues
clarity of aspects and monetary terms
etc since a badly drafted agreement will not only result in confusion in wordings but may also result in losing your stand due to the anomaly created by the usage of the words.
Since, an agreement has to be read, understood and analysed as per the wordings and expression employed in the body of an agreement. It is pertinent to understand that under no circumstances any artificial word can be infused or an additional meaning can be drawn other than what is understood in literal manner.
Therefore, it is always advised to go for a legal vetting of an agreement/documents in order to save unforeseen loses which could been averred if a proper action of legal vetting by a law firm is executed in time.
The copy paste or stereotype legal agreements/contract and documents may be suicidal and hence a legal expert has to be approached to make a proper legal agreement and for legal vetting of documents as well.
For agreements and legal vetting, please contact us.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
