Business Agreement Glossary
Joint Venture – An agreement that allows two or more independent companies to manage a joint venture, share costs, profits and losses. A contract is an agreement that requires you or your company to act. It is therefore important to ask your lawyer or advisor to explain any language or terminology you do not understand. Exclusion Clauses – Clauses in a contract intended to exclude a portion of the liability if a declared circumstance occurs. These are types of derogation clauses. Courts tend to interpret them strictly and, if possible, in favour of the party who did not write it. In the case of customer transactions, exclusion clauses are subject to exclusion clauses that render most of them ineffective, but note that these rules are not covered by commercial transactions. Insolvency – the situation in which a person or company cannot repay its debts when they mature (see bankruptcy, liquidation and bankruptcy). Guarantee – a secondary agreement by which one person promises to honour another`s debts if that debtor does not pay.
Banks and other creditors often ask small business managers to provide their personal guarantees on corporate debts. A guarantee must be made in writing. The surety can only be sued if the effective debtor cannot pay, unlike the compensation. Employment contract – A legally binding agreement between the employer and the worker. Application Also known as tender – the buyer invites suppliers to provide for companies, usually specifications and conditions and conditions. Investigation documents include all documents – specifications, terms and conditions, etc. – that have been forwarded to suppliers so they can make an offer. A contract glossary is a brief dictionary of the terms of the contract. Read 3 Min Franchise – A commercial agreement that allows a party to do business with the product, real estate or company name of another party. Corporate Seal – a striking press used to show the official signature of a company, if accompanied with the signatures of two company officers. Since 1989, it has been possible for a company to indicate its consent without the use of the label by two signatures (directors or company secretaries) as well as a formal declaration.
However, some companies still prefer a label and a company`s articles can repeal the law and require the use of a label. Due Diligence – the formal process of investigating a company`s history, either before the purchase, or as another party in a larger contract. It is used to ensure that there are no hidden details that could influence the agreement. Here is a term business contracts and glossary definitions – basically for the UK, and a useful guide for anywhere in the world. If you participate in the negotiation of business contracts – especially for your own company – you can get much better trading results if you have a good understanding of what contracts mean and their terminology. This will allow you to use your legal advice for specific legal issues rather than making strategic decisions over which you need full control. Order Form A pre-printed form used to enter into an agreement with a supplier that generally includes the buyer`s delivery terms. It includes goods or finished work, as well as drawings, specifications and other related documents. Intangible assets such as guarantees are generally not included, which are commonly referred to as „current bonds.“ Shareholder Pact – an agreement between all shareholders on how the company should be managed and the application of shareholder rights. This serves as a contract between shareholders.