The main thing that comes to your mind when you are starting or running a business is growth. However, it is crucial to ensure that you conduct business and trade transactions in a manner that is regulated and in compliance with the applicable laws.
The need for dedicated and custom-made commercial contract templates is clearly evident, given that it is important to document any commercial activity with service providers, suppliers and contractors, preventing loss of rights. Drafting commercial contracts, in Dubai, UAE may be demanding and may impose high costs to create.
Fortunately, you may get a variety of legal contract templates adapted to distinct sectors and objectives.
In order to meet the exceptional branding and lawful necessities of your business, it is easy to modify content in such templates.
What is a contract template for a business?
A template for business contracts, in Dubai, UAE, is a prearranged legal paperwork that lays down the necessary terms and conditions of commercial agreements.
With these templates, you can be sure that your enterprise arrangements get laid out in such a way as to meet the necessities of the applicable laws and regulations. It enables you to concentrate on more significant matters, such as negotiations and the growth of good collaborations.
Who can use a template for business contracts?
Regardless of the size or location, every enterprise will inevitably have to enter contractual relationships. It often leads to a load of arrangements and paperwork you have with your suppliers and service providers.
That is why legal contract templates are exceptionally beneficial for businesses that do not have the internal legal proficiency necessary to be capable of creating their legal database. Besides saving time, a template ensures that you do not ignore the default clauses, which may incur liabilities for your business in the future.
The advantages of using a contract template for businesses
The process of drafting commercial contracts can be tiresome and challenging, even worse if you are creating them on a regular basis. A compelling contract template for business may be of assistance in this respect. You can use these templates to benefit your enterprise in these ways:
1. Reduce both costs & time
It can increase the effectiveness of your business in negotiations. All required clauses are drafted in a detailed manner. It enables all the preparations to be smooth, so you can efficiently adjust your template in order to suit your necessities.
In addition, the use of legal contract templates may contribute to a reduction in expenses. The necessity to attain legal assistance through a legal professional is reduced.
2. Ensure reliability by establishing a standard
Commercial contract templates will confirm that your contracts comply with the applicable laws of the United Arab Emirates.
It will lower the chance of legal conflicts, possible penalties, or harm to your business's interests. You will be in a favorable position to protect yourself from every prospective drawback, recognizing that your contracts comply with the applicable laws.
Legal templates are drafted to attend to the business needs of the company. Accuracy and appropriateness are the main principles followed when drafting legal templates as legal repercussions may apply.
The different forms of business contracts
Determined by the objective of your contract, you will be concluding different kinds of binding contracts, being a company owner. Before selecting the appropriate legal contract templates, you must gain insight on different commercial contracts. The most common business contracts you must be aware of are as follows:
Supply of services agreements
A service agreement establishes a contractual relationship between a client and a service provider whereby the service provider delivers a certain type of service, such as catering services, photography services, and management services. The service provider undertakes to deliver the described services in a manner of due care and skill in exchange for a fee agreed upon by the parties.
Supply of goods agreements.
The sale of certain goods must be documented by an agreement that sets item details, costs, delivery schedules, details regarding payments, and any guarantee or warranty that may apply.
Joint venture agreements
A joint venture agreement is entered into between companies that allocate their resources together to provide a specific project. The purpose of a joint venture is usually to enter a foreign market through a local company or to share risks and costs. Some clauses include the business objective of the joint venture, the ownership percentage of the venture, and the profit or loss allocation.
Distribution agreements are made between a distributor and a company whereby the distributor purchases the company’s products at a set price and resells them in the agreed upon territory. The distributor may be appointed as an exclusive distributor or a non-exclusive distributor of the company.
A franchise agreement establishes a relationship between a franchisor and a franchisee whereby the franchisor grants the franchisee a license to operate a business identified with its brand’s trademark. Main clauses include the duration, location, and use of intellectual property.
Non-disclosure agreements (NDA’s)
NDA’s are certainly not only used in commercial relationships, they can be used in employment relationships, investment relationships, etc.. Signing NDA’s is crucial when carrying out commercial activities, as suppliers, contractors, and service providers may be granted access to confidential information and the client/company must ensure that such information is not unlawfully disclosed. The agreement sets terms and conditions for usage of confidential information and the measures that must be taken to protect them from unlawful disclosure.
What are the main clauses in commercial agreements?
Clauses vary depending on the nature of the commercial agreement, however, some of the main clauses include:
1. Obligations of the Parties
Each party to the agreement undertakes certain obligations. In the case of a service provider, the service provider undertakes to deliver the services at a certain date and in the agreed condition and quality. The client on the other hand, undertakes to pay the fees and any additional expenses agreed upon. Each obligation may be placed in separate clauses such as fees, delivery, services etc..
A confidentiality clause is crucial as the parties may be granted access to other party’s confidential information, therefore, each party undertakes not to share the confidential information of the other party except in the cases described in the contract such as a requirement by an authority to disclose such information.
In this clause the indemnifying party agrees to protect the other party against lawsuits filed by third parties for losses that occurred to them because of the indemnifying party’s wrongful act. The indemnified party may also demand compensation for direct damage to its business due to the indemnifying party’s misconduct.
4. Intellectual Property
An intellectual property clause is important to ensure that any intellectual property owned by one party remains its property and any intellectual property derived from the contract is owned by one of the parties or both parties as agreed upon.
5. Force Majeure
A force majeure clause is important to ensure that a party is not liable for breach of contract in case an unforeseeable event takes place such as wars, economic crises, acts of god, etc.. The parties may also determine that if the force majeure event continues for a certain period of time, the contract terminates as such.
This clause sets the terms for termination of the contract. The parties may have the mutual right to terminate the contract or a unilateral right for one party provided that a notice period of termination is served. The parties may also agree that the agreement may be terminated without notice in case of any breach of contract that continues for a certain period of time.
7. Governing Law and Jurisdiction
The terms and conditions of the contract are interpreted in accordance with the governing law. The parties must also agree upon dispute resolution mechanisms such as litigation (Courts) or arbitration.
With reliable legal contract templates, your company may save money, reduce expenses, assure uniformity, and prevent legal conflicts. Taking care of your business contracts, Dubai, UAE, will help you grow the company quickly rather than struggling over heaps of documentation.