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What Is A Contract
Commercial Contract
A contract is an agreement between two parties. In order for a contract to be legally binding or recognised by law, it needs to be created in writing and signed by both parties. The two parties can be a combination of any number of persons and/or companies.
Contract Structure
Written contracts are invariably divided into a 3-part comprehensive narrative, explaining what is being agreed, what is the intention of the agreement and what are the detailed considerations of the agreement. Think of the 3 parts of the contract as the skeleton, which will be filled with essential details agreed by both parties.
How Should The Contract Be Drafted
The details of a contract need to be clear, concise and thorough. If a non-legal entity drafts a contract, inevitably principals of law could be absent, rendering the contract illegal or void. Aspects of the contract may be unacceptable to the other party and areas of serious consideration could be absent. It is therefore imperative that a legal professional should be instructed to draft the contract.
Who Should Draft The Contract
When preparing the narrative of a contract, the legal professional will specialise in the area or industry of the agreement subject. For example, if the contract is between an employer and an employee, the legal professional will specialise in employment law. This is extremely important because a successful and qualified legal professional will have expertise in a specific area or areas.
If you need help in drafting a contract, please get in touch for an informal discussion on the phone. SG
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