Commercial agreements   in this day and age.

A commercial agreement is an agreement between two or more companies or professionals, setting out the terms of a business transaction. It may concern the supply of goods and/or services, agency, distribution and franchise agreements or other commercial activities. The purpose of the agreement is to clarify the obligations and rights of the contracting parties.

When drafting a commercial agreement, it is essential to pay attention to the following aspects:

• Clear description of the parties: Ensure that the parties involved are clearly named, including company names, Chamber of Commerce numbers and legal personality.
• Defined obligations: Define the obligations of the parties, e.g. the delivery of certain goods, the date by which delivery must take place and the quality requirements to be imposed on the product.
• Payment terms: Describe how and within what period payments are to be made.
• Liability: Agree on the (limitation) of liability.
• Dispute settlement: Include a clause on how any disputes are to be resolved, e.g. by arbitration or court proceedings.

If the other party does not comply with the agreement, you can take the following steps:

• Letter of formal notice: Send a formal written warning informing the other party of the breach of contract and giving them a chance to rectify the situation within a specified period of time.
• Consultation: Initially, try to find a solution through consultation or mediation.
• Legal action: If consultation does not help, you can consider taking legal action, such as starting court proceedings to seek performance, rescission and/or damages.