Article IX - Legal Awareness Series

 Formal Documentation – A generic listing of Minimum requirements/ parameters.


As seen in the previous Article VII, a specific set of legal terms and conditions need to be added to support commercial terms and conditions in any deal. The nature of the deal itself determines the legal terms and conditions that would be included in the contract.

Though the majority of business activities carried out by the entrepreneur are in the area of either providing pure services or trading  (buying ready-made products in bulk and selling them in retail), some of the entrepreneurs may also be involved in manufacturing or development activities. Depending upon the nature of the activity, the legal terms and conditions to be added to the commercial and technical part of any documentation differ.

The provisions to be added to cover the following areas:  

  1. Scope-related provisions.
  2. Any specific special terms & conditions about the scope- if agreed between the parties.
  3. Commercial provisions
  4. Legal provisions related to the scope
  5. Legal provisions related to protecting the legal rights of both parties.
  6. Legal provisions related to the law(s) governing the transaction as well as the redressal mechanism.
  7.  Other general provisions.

The above is neither an “exclusive and complete list” nor a “must list” for any deal. In fact, the exact number & nature of legal provisions to be incorporated in the “formal documentation” along with the commercial terms will be determined each time by the nature and magnitude of that deal. However, a business entrepreneur must be aware of all legal terms and conditions that need to come under all the above heads and the use of the same. 

Cont...

For any query feel free to contact me.


Mahesh Vaidya
M.Com, LLM, ACS, DFM, CAIIB  
Legal Adviser
Cell Number 9769949701 / 9223173695
Email ID maheshvaidya2706@gmail.com

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