Commercial Agreements
All types of business will be involved in commercial agreements of one form or another. These can include:
These are the most common form of commercial agreement and arise every time goods or services are bought or sold. Just because there is no formal written contract does not mean that a contract does not exist. It is vital that your business has a set of standard terms and conditions and you know how to ensure that these are incorporated in all your contracts.
These occur when your business uses an intermediary in supplying your product. Typically an agent will be responsible for finding customers and persuading them to buy your products. As the agent is acting on the business's behalf, the eventual sale contract will be between the business and the customer. The benefits of such an agreement are that the business exerts a greater degree of control over the agent and sets the terms under which the product is sold. The downside being that the large degree of control gives rise to a quasi-employee relationship between the business and the agent, which can have far-reaching consequences for the business, particularly if the business dispenses with the services of the agent.
Distributorship agreements
Again, this involves using an intermediary to sell your product, but unlike an agent a distributor actually buys the product from you and then sells it on. While some degree of control can be exerted by tyou over how the product is sold, that control is far less than with an agent.
The description 'agent' is at times used somewhat carelessly by some businesses, and can actually be applied to those who are not in fact true agents, so far as the law is concerned. This can cause much confusion as to who is responsible for what and the true legal situation.
Whether to run an operation through agents or distributors is a business decision, dependent on your particular field of operations. However it is very sensible to make sure that whatever relationship there is is clear and properly documented.
When buying a business, a franchise agreement gives you the right to use a known brand. The agreement can be extremely comprehensive, providing raw materials and marketing support and stipulating exact procedure to be followed (from how your premises must look, to what the uniform staff must wear).
Franchising offers a way into a ready made business model which should be tried tested and work well. This can provide safety and an easy way to start running your own business. However not all franchises are as good as they at first appear and many work by taking a percentage of the business turnover irrespective of the profit made. When they work well they can be very good but this is not always so and you need to take great care if considering going along this route.
On the other side of the coin you may have developed a successful business with a brand or identity you would like to develop outside your normal business territory. This can be done by franchising your operation, and if you do so you will need to keep control over how your franchisees operate their businesses in your name. If they do not operate properly they could damage your reputation and business. The answer to this is in the form of a properly drafted franchise agreement, and we can help you with this.
Most agreements can be drafted to cover any situation where two parties wish to enter into an agreement. They can range from joint venture agreements to confidentiality agreements. By getting to know your business we will be able to advise which is most suitable for you.
Contracts for the sale or purchase of goods or services
These are the most common form of commercial agreement and arise every time goods or services are bought or sold. Just because there is no formal written contract does not mean that a contract does not exist. It is vital that your business has a set of standard terms and conditions and you know how to ensure that these are incorporated in all your contracts.
Agency agreements
These occur when your business uses an intermediary in supplying your product. Typically an agent will be responsible for finding customers and persuading them to buy your products. As the agent is acting on the business's behalf, the eventual sale contract will be between the business and the customer. The benefits of such an agreement are that the business exerts a greater degree of control over the agent and sets the terms under which the product is sold. The downside being that the large degree of control gives rise to a quasi-employee relationship between the business and the agent, which can have far-reaching consequences for the business, particularly if the business dispenses with the services of the agent.
Distributorship agreements
Again, this involves using an intermediary to sell your product, but unlike an agent a distributor actually buys the product from you and then sells it on. While some degree of control can be exerted by tyou over how the product is sold, that control is far less than with an agent.
Agent or distributor?
The description 'agent' is at times used somewhat carelessly by some businesses, and can actually be applied to those who are not in fact true agents, so far as the law is concerned. This can cause much confusion as to who is responsible for what and the true legal situation.
Whether to run an operation through agents or distributors is a business decision, dependent on your particular field of operations. However it is very sensible to make sure that whatever relationship there is is clear and properly documented.
Franchise
When buying a business, a franchise agreement gives you the right to use a known brand. The agreement can be extremely comprehensive, providing raw materials and marketing support and stipulating exact procedure to be followed (from how your premises must look, to what the uniform staff must wear).
Franchising offers a way into a ready made business model which should be tried tested and work well. This can provide safety and an easy way to start running your own business. However not all franchises are as good as they at first appear and many work by taking a percentage of the business turnover irrespective of the profit made. When they work well they can be very good but this is not always so and you need to take great care if considering going along this route.
On the other side of the coin you may have developed a successful business with a brand or identity you would like to develop outside your normal business territory. This can be done by franchising your operation, and if you do so you will need to keep control over how your franchisees operate their businesses in your name. If they do not operate properly they could damage your reputation and business. The answer to this is in the form of a properly drafted franchise agreement, and we can help you with this.
Miscellaneous
Most agreements can be drafted to cover any situation where two parties wish to enter into an agreement. They can range from joint venture agreements to confidentiality agreements. By getting to know your business we will be able to advise which is most suitable for you.
