The contract is a document that validates any commercial relationship. It is this document that dictates rules, gives guarantees and establishes rights and duties between the parties that enter into some kind of commercial negotiation.
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It doesn't matter whether this business relationship involves legal entities or individuals. Every time a purchase, sale or even partnership is negotiated, it is important for the parties to sign a contract, which is the legal instrument that will secure the relationships established and guarantee compliance with what has been agreed. This document can prevent possible future litigation.
It is common for people, and even companies, to formalize business relationships using ready-made templates, without legal advice from a professional. But be aware that a contract should be much more than a formality!
It is important that it is well drafted, in accordance with the needs of the parties involved, and the clauses must be compatible with the relationship entered into, with specific rights and obligations and provisions in accordance with the dictates of the law.
When it is drawn up, the contract must be very detailed so as not to generate doubts and subjective interpretations, thus avoiding conflict between the parties, whether out of court or in court.
TYPES OF CONTRACT
You need to understand that there are several types of contracts, each with its own particularities. Before signing any type, it's important to know the difference between them.
There are the typical ones, which are purchase and sale (regulated by the Civil Code), real estate leasing (regulated by the Leasing Law) and real estate development (regulated by the Civil Code). Law No. 4.591/64). There are also atypical contracts, i.e. those that are not provided for by law, such as factoring, leasing and the provision of services, among others.
Regardless of the type, every contract follows fundamental principles:
- Freedom to Hire
- Consent
- Mandatory
- Good faith
WHAT SHOULD BE IN A CONTRACT
When drawing up a contract, you should pay attention to the full qualifications of the parties involved and make sure that they include important information such as name, ID, CPF or CNPJ and address. This information can help you locate the contractor, if necessary. Depending on the type, it is also important to include information such as the profession and marital status of the parties.
When it comes to qualifications, it's also important to pay attention to the other party's address, especially if it's a company. Make sure that the address given really exists and is actually in operation there.
Other information that must be included in the document is: the object of the agreement (be it movable, immovable, a service or value), the rights and duties of the parties; the amounts, form and deadline for payments and guarantees, if necessary, and the fine clause in the event of non-compliance with the rules. There should also be clauses defining how the contract will be terminated and the consequences of early termination.
SIGNATURE
Another important point, which people sometimes overlook, is the signature. The document must always be signed by the company's legal representative, i.e. the person whose name appears on the articles of association. Otherwise, it is invalid.
BE CAREFUL WITH THE ANALYSIS
Not everyone carefully reads the clauses of contracts, which are often written in tiny type and legalese. This lack of caution, however, can lead to great damage and serious consequences for one of the parties involved.
That's why it's important to analyze the contract in detail in order to fully understand the document before signing it. As we've already mentioned, contracts provide guarantees and establish rights in any commercial relationship. So be careful!
Before signing any contract, seek the advice of a lawyer, which will identify possible inconsistencies and make the necessary adjustments.