Contracts are an important element of virtually every industry or individual business. Contracts are required for most major transactions, and without contract processes, many commercial industries would not be able to function reliably.
Businesses also depend on contracts to form relationships and agreements with buyers and suppliers. Protecting both parties, and outlining their obligations and rights is paramount to successful transacting of property. The contract that is drafted to fulfil this purpose is called a Terms of Trade document.
A Terms of Trade contract clearly and succinctly provides a framework for each parties’ obligations. Any business that needs to manage incoming payments, prevent debts, and assuage business risks can benefit from a pre-arranged Terms of Trade document. This document can then be amended for each situation it needs to be deployed in.
BMC Law is a legal firm in Wellington that aims to help businesses with Terms of Trade documents, as it’s all too common to see those without one in place struggling to settle disputes that could have been avoided ahead of time.
Ultimately, the most important factor to consider is whether or not all parties involved in the Terms of Trade have read and understood the contents. Once this is ensured, involved parties can exchange goods and services while obliging by the clauses laid out, without worrying about the situation degenerating into a dispute.
BMC Law has a few recommendations and guidelines for what to include in a Terms of Trade document, which you can find on their website, at https://www.bmc-law.co.nz/