A commercial agreement is a business contract that establishes the terms of business transactions between two or more parties. Commercial agreements come in many forms and encompass just about every aspect of conducting business, from wages and hiring, to loans and employee safety. Although these contracts can be in writing, commercial agreements can just as easily be verbal, or even implied. Furthermore, commercial agreements can be business-to-business or business-to-consumer contracts. If you plan to enter into a commercial agreement on behalf of your business, it is essential that an attorney prepare and/or review it.
Types of Commercial Agreements
Commercial agreements come in all shapes and sizes and are used in just about every industry. We commonly represent clients in cases where commercial contracts are used to establish:
- Supply of goods and services
- Sales and distribution agreements
- Broker/carrier agreements
- Outsourcing agreements
- Non-disclosure agreements
- Confidentiality agreements
- License agreements
- Franchise agreements
- Loan and financing agreements
- Employment contracts
What is Covered in a Commercial Agreement?
Once you and the other parties involved in a business transaction have reached some type of verbal agreement, you can formalize the agreed-upon terms in a legal contract known as a commercial agreement. Using a boilerplate commercial agreement is never wise, as the overly broad terms offer little to no protection in the event of a contract breach. This is one of the many reasons why it is so important to work with an experienced Pennsylvania contracts attorney.
Although commercial agreements vary widely in scope and terms, there are certain elements common to most of these contracts. A typical commercial agreement should:
- Identify all parties involved;
- Define any confusing, ambiguous, or obscure terms;
- Discuss the contract details, such as the product or service in question, pricing, delivery options, and important dates and times; and
- Address the potential results of non-performance, such as warranties, indemnification, and termination.
What is a Valid and Enforceable Agreement?
For a contract to be valid and enforceable:
- There must be an offer and acceptance of an agreement between two or more parties;
- Each party must give something to the other in exchange for what they receive;
- Each party must be legally able to enter into the contract;
- Each party must have signed the contract willingly; and
- The contract must be for the performance of a legal act.
Businesses are generally expected to know how to protect their interests, which includes understanding what makes a commercial agreement both valid and enforceable. If, for example, a representative of one business was not authorized to sign on behalf of their business, the agreement could be deemed invalid and unenforceable.
Contact Reager & Adler, PC
If you need advice on a commercial agreement or are involved in a breach of contract dispute, the skilled legal team at Reager & Adler, PC can help. We have the knowledge, experience, and dedication to help clients navigate even the most complex contract negotiations. Contact us today for a confidential consultation about your case and to learn more.
Theodore Adler, Founding Partner
Reager & Adler, P.C.
2331 Market Street
Camp Hill Pa. 17011