Commercial agreements in Portugal : Drafts, negotiations and reviews
Ensure your commercial agreements protect your interests
Commercial contracts are private agreements made between two parties to create rights and obligations for both sides. They guarantee compliance, so these agreements can be made with customers or suppliers, partners or other interested parties. They allow transactions and business operations to occur without any risk.
Our corporate lawyers will guide you through the process step-by-step.
How can a lawyer help me?
Contracts outline the obligations and responsibilities of one side or all sides involved. Therefore, they should be drafted clearly and logically so they are not vague or confusing and avoid disputes down the line.
In contrast, many contracts have a specific framework which requires certain clauses to be included, and terms or provisions must be considered. For example, INCOTERMS in transportation and supply. Time limits or due dates are also crucial to factor in when drafting contractual agreements.
Creating a contract typically isn’t just one party’s responsibility. Often, there is a negotiation process where different versions are drafted according to the preferences of each signatory.
At Lexidy, our corporate lawyers have the technical and legal knowledge to prepare this type of document. We follow the necessary standards and, of course, the client’s best interest as the reference point.
Lawyers can provide support during negotiations, and they are best suited to answer any opposing party’s revisions.
¨We will be with you each step of the journey.¨
When drafting a contract for services, the first thing to do is to identify the service provided under the agreement. Sometimes this comes in one of these forms:
- Agency Contract
- Distribution Agreement
- Confidential Agreement
- Partnership Agreement
- Sale and Purchase Agreement
- Franchise Agreement
- Leasing Agreement
- Service Provider Contract
- Guarantee Contract
- Loan and Credit Agreement
- Terms and Conditions
- SAFE Agreement
- Employment and Services Agreement
- Joint Venture Agreement
- Advertising Agency Agreement
- Settlement Agreement
When our client has instructed our team of lawyers at Lexidy LegalTech Boutique, they will know which clauses to include. They also know how they should be drafted according to the preferences and interests of the client. Importantly, their final decision is always sought in all matters related to contractual agreements.
What are the requirements?
You need to ensure that the following are present for a valid commercial agreement:
- In addition, both parties must give consent.
- Both parties must have the legal capacity to exercise their rights.
- The type of work or service to be provided must be lawful.
Process of getting a Commercial Agreement
Every commercial agreement is different, and the approach is flexible, but generally speaking, it follows the below steps.
- Meet with the client to understand and clarify the contract’s purpose and the services provided.
- We create a first draft that aligns with the client’s interests. This is always within the current law and framed around the client’s position in the contractual relationship. The exact form depends on what type of contract they have signed. Generally, it will be written in a way that they can understand.
- The first draft is presented to the client, who may suggest changes and additions they would like included.
- We will help you with the negotiations. In addition, we offer services for finalizing legally binding and enforceable contracts until a specific date.
Our corporate lawyers will help protect you if a breach of contract occurs while limiting your liability. We will draft a legal document that can handle all contractual obligations and remedies if a breach occurred.
Our contracts cover large suppliers to independent contractors and can include dispute resolution terms. This is particularly helpful for minor breaches as well as material breaches. We are also experienced in anticipatory breaches.
Frequently Asked Questions
You should not sign a contract without having it read for you. It is unlikely that you will be able to spot the loopholes in the agreement. Likewise, it’s difficult to understand all of its implications in detail on your own. Still, with professional help from an attorney, you can ensure that everything is as before signing anything.
Terms and conditions found on the Internet are general. They have not been adapted to specific services of any person, much less cover all possible scenarios that your business might face. Therefore, if you decide to use them anyways, it is always best for legal advice from a specialist.
Portuguese law provides for the following contractual remedies:
- Unilateral contract termination if the breach is essential to the contract and is breached on purpose.
- Remedies of imposed conduct. For example, in consumer sales, this includes repairs and replacements.
- Remedies of money, such as damages or price reduction.
- Remedies for poor performance, even if it’s temporary.
Damages are a payment of a sum of money to compensate the injured party for any breach, termination or loss. The amount is based on how much was lost during the violation. It also includes the time taken to restore everything. Part of the contract must ensure that are penalties for the breaching party.
Sometimes both expenses incurred and even profits that were lost would be considered damages, depending on what caused it in the first place. It doesn’t matter what type of breach occurred.
We are a department formed by qualified legal experts who have been trained in the field of corporate law. We work on these requests every day and it’s our passion. For us, Lexidy is a way of life and what excites us the most is to be able to deliver the happiness and satisfaction of a successful process. We want to help you achieve your goals and dreams.
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