Understanding the difference between business agreements and contracts

Understanding the difference between business agreements and contracts

What exactly is a business agreement?

In general terms, a set of rules that govern business or commercial transactions between two or more parties is called a business agreement. These rules are not necessarily formed by any legal body. Agreements can also be based on internal conversations between parties.

Does a business agreement need to be written?

It is possible to create a business contract verbally provided the interaction has all the legal elements i.e. offer, acceptance, capacity to contract, consideration, and legal motive. However, some agreements must be in writing only, for example, the sale of real estate. If there is a slight chance that the parties are going to be doing business regularly, then it’s a good idea to draft a business agreement outlining every minute detail. Business agreement lawyers in Alberta can help you draft accurate business agreements which will protect the interest of all parties in case of any dispute.

What exactly is a business contract?

Irrespective of size, industry, employee strength, revenue etc. majority of businesses today use business contracts. Whenever there is an exchange of goods and services between two parties for a monetary value, a contract should be formed. The contract specifies what both parties must do until the contract is in force. Most contracts are written formally as it’s a legally binding document. Some examples of business contracts include employment contracts, lease contracts, tenancy contracts etc.

Differentiating between contracts and agreements

You might have heard people using the terms contracts and agreements interchangeably. However, they mean different things in the legal world. An agreement is an understanding between two or more parties. Whereas a contract is a specific agreement and has clearly identified terms and conditions which the parties need to respect. If any party violates the terms of the contract, the other party can sue them in court. An agreement can be written or oral but a contract is always written.

Business agreement lawyers make the process smooth

Business agreement lawyers must be able to draft accurate agreements after listening to the parties carefully. Thus, a business agreement lawyer is in charge of making sure that the company stays on the right side of the law. All businesses at some point in their journey need to consult with a business agreement lawyer and whenever they do, they must go to the very best out there. Duplooylaw’s business agreement lawyers in Alberta are providing clients with excellent legal services.

In recent times, the way businesses operate has changed drastically. Alberta especially is demanding business lawyers more than ever. Your company should be represented by the very best whenever the need arises. For the seamless resolution of legal matters, your company needs to hire a competent and knowledgeable business lawyer. Agreements are a crucial part of any business and hence the business agreement lawyers help your company at all stages of agreement formation.

There are countless other niches in business law that a business owner might not be familiar with. Also, they need not worry about legal issues since Business agreement lawyers in Alberta from Duplooylaw have deep expertise in business laws, agreements and contracts as well. Business agreement lawyers in Alberta from Duplooylaw have helped countless other companies with their services.



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