Commercial agreements are is a legal document that binds an sample agreement of two entities stating the warranties and clauses. Some commercial agreements contain confidential information, similar to a nondisclosure agreement and lease contract agreement, for which you can find assistance in the form of lease contract templates.
Commercial agreements are usually reviewed by business attorneys in advance and does not use business jargon. They, instead use plain language that any person could understand. This type of document requires a review from an attorney because business to business transactions need to be notarized.
Commercial Lease Agreement Template
Commercial Sublease Agreement Template
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Free Commercial Agreement
Elements of Commercial Contracts
Before writing a commercial contract, it is always necessary to know what are the things to write. This is to make sure that the outcome is satisfactory and that the effort won’t be put to waste. If you happen to be looking for the tips and guidelines and other examples of contracts, then perhaps you are on the right track. Aside from commercial contract templates, we also have lease agreement templates and sublease agreement templates that can be useful in your perusal.
- Offer – The basic inclusion of commercial contract is an offer which states what a specific party can give and is willing to contribute. Also, the offer must adhere to the court of law, thus offers must be legal.
- Acceptance – Acceptance is the activity of agreeing to the terms and conditions set by the contract. It is important to make sure that both entities completely agree for it be enforceable and valid.
- Consideration – This section states that both entities will contribute something in exchange or the revers. This is to make sure that both parties have a fair share of giving something for both.
- Competency and Capacity – This portion tells that the individuals involved are of legal age and has the mental capacity to engage oneself with legal contracts to make sure there is full understanding of what they are signing.
Different Types of Commercial Contracts
Different business transactions require different types of documents. Business contracts, for example, are categorized according to rental agreements (for which you can use rental agreement templates), employment contracts, and real estate contracts (which can go hand in hand with a real estate confidentiality agreement).
Commercial agreements are being dissected too.
- Definite Quantity – This type of commercial contract details the specific quantity of the services and supplies in their respective locations at a specified time.
- Fixed-Price Contract – This type is opposite to the firm-fixed-price contract, in which prices can be easily adjusted at a ceiling and target price. A clause is also provided stating an equitable adjustment to the prices under he stated circumstances in the contract.
- Firm-Fixed-Price Contract – This contract is about the agreement to control the costs and performance efficiently because the price is not subject to any change regardless of the contractor’s performance in the contract.
- Material and Time Contract – States the acquired supplies and services through a direct labor hour basis which includes wages administrative expenses and profit. It also includes the cost of materials and its appropriate handling costs.