By the nature of business, it is impossible for any business entity to operate like an island. Every business has customers, suppliers, thereby interacting with the larger society in different ways. One very essential part of this interaction are agreements. Agreements for supply, for sale, and for services for instance.
Agreements are terms of defined expectations or guidelines in place to guide the parties in a contract. A well and sound drafted agreement is integral for commercial sustainability and success. Businesses that payed less attention to their agreements have had bitter experiences and most times jeopardized their chances of getting legal redress at the end of the day.
A major feature of agreements is that they help outline the expectations and deliverables of both parties, thereby removing any ambiguity to the intention of the parties. In any business environment, it is critical to have legal documentation in place to establish a system of rules and policies governing the legal enforcement of promises. Whether it be to simply memorialize a common understanding of an organizational relationship or govern future venture needs, the protections afforded by strong contracts are invaluable to operating a successful business.
Protecting your business in the event of a breach of contract is also a major advantage of having an Agreement. A breach of contract means that the party in breach has acted contrary to the terms of the contract by performing a contract negligently and not in accordance with its terms. When there is a breach of contract, the aggrieved party can be awarded damages. Damages are awarded to restore the plaintiff as far as money can to the position he would have been if there had been no breach.
There are other advantages of having an agreement but businesses can only benefit from them, when there is an Agreement. Such Agreement could be written or verbal, however, written agreements are better as they are easier to prove.
If you have any comments, questions or remarks about Agreements, you can simply drop a comment or send us an email.
Originally published by AOC Solicitors