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Philip Astles

What Is A Business Contract? Philip Astles, Managing Partner of Kidd Rapinet in Slough, specialises in all aspects of Commercial Law. Here he explains a commonly asked question “What is a Business Contract?� A business contract is needed when two businesses join together, usually because one business has a product or skill that the other business requires or needs. The business that provides the skills or the product may for example receive payment in return. Without a business contract in place you are more likely to be faced with various problems, such as late payments for products or confusion to what may have been verbally agreed. You will need a solicitor to put a business contract in place, as this will remove or minimise any complications or misunderstandings that can arise and give clarity concerning the expectations of both parties. Slough office contact details: Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Philip Astles

What Is A Business Contract?

Main Kidd Rapinet Website

When two businesses join together to create more business they too will need a business contract put in place, so that they both fully understand what role they each need to play in the business. This prevents any misinterpretation on what is expected of each business involved. If you do not have a business contract in place right from the start, but want one at a later date, this will undoubtedly cause the other party for ask why you did not ask for one right from the start and possibly leave them feeling that you do not have trust in them. This may cause confusion to why you want a business contract in place as the business, in their view has been running sufficiently. It is also worth considering that without a business contract you could be potentially open to a point to where they could pay you late or not at all after they have received what they needed, because they are not legally bound by a contract. If a business is suffering from cash flow problems their priority will ultimately be with those whom they have a business contract with, as they will know that they are legally bound to and ensure that they comply with conditions set within that contract, rather than those who they have no contract with. Slough office contact details: Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


Philip Astles

What Is A Business Contract?

Main Kidd Rapinet Website

Whether you are running a business yourself or on behalf of shareholders, clients will definitely prefer to have a business contract so that they know that they will receive payments, skills or product on the date agreed within the contract. You are bound legally to comply with all agreements and provisions set out in the business agreement regardless of any cash flow problems or new ventures that arise. This agreement ensures that each party involved receives exactly what has been agreed. If you are considering whether a business contract is for you and your business or just want some advice, please contact me, Philip Astles, at Kidd Rapinet on 01753 532 541 or arrange a call back Slough office contact details: Parliament House, St Laurence Way, Slough, Berkshire, SL1 2BW From within the UK: 01753 439089 From Overseas: +44 (0) 1753 439089 FAX: 01753 820501 DX: 42269 Slough West


What Is A Business Contract?  

A business contract is needed when two businesses join together, usually because one business has a product or skill that the other business...

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