Commercial contracts is an agreement between the two or more parties that should be regarding business arrangements. It is more likely to indulge with a set of common terms and conditions. Contract Management is required utmost to deal with the commercial contracts. It is a breach of contract when one party fails to fulfill the deals. Also, it might go into litigation which will be costly and time-consuming and engage you into dispute resolution.
Classification of Commercial Contracts
Letter of Intent (LOI)
It is made to discuss working arrangements at a high level with the agreements of both parties. Letter to intent helps parties to check its worth continuing the discussion before they waste time and money on a deal that is unlikely to close.
Non-disclosure Agreement (NDA)
It is helpful to protect business trade secrets and other sensitive information. When a business engages with other contractors, it’s important to ensure that they don’t leak your confidential information that might harm your business.
Purchase and Sale Agreement (PSA)
It helps for the sale of a specified good or services at a set price. It is helpful for the individual, large, medium or repeated purchases from the other party.
Service Level Agreement (SLA)
It helps to specify the terms such as quality guidelines, delivery times, and response times for service and support.
Managing Commercial Contracts?
Contract Management is important to create templates, to negotiate and draft new agreements, to review contractual obligations for staying compliant and track business partners performances which they have promised.
If you don’t run with the contract management services then that might delegate much for your contracts. This might create trouble when you outsource your management of contracts. However, this approach is effective, gives you convenience and cost-effectiveness and helps you in decision-making to accelerate the success.
In today’s world everybody needs smart, fast, secure work to streamline the contract drafting and management at scale.
We at AEREN LPO, take care of the efficiency of your deals, the accuracy of contract review and data extraction, and the security of the businesses confidential information.
Do you want to work on the efficiency of your commercial contracts? Head to www.aerenlpo.com to work on the same.