There is a lot to do once you start a business. Small and medium-sized businesses or startups, which often begin with just one or two products or services, encounter numerous tasks such as collaborating with various customers and signing contracts from the planning stage onwards. It is necessary to establish product purchase contracts or service contracts with technicians, negotiate supply contracts or sales contracts with customers, handle purchase or lease agreements for factories or offices, and establish labor contracts with employees. These business-related contracts arise throughout all stages of the business process. However, navigating these legal aspects can be challenging for small businesses and can present unexpected obstacles. Reviewing relevant laws, negotiating with customers, and signing contracts while simultaneously promoting the business is never an easy feat.
Business disputes are inevitable. In the event of a dispute and anticipated damages, it becomes necessary to prepare for legal action. When it comes to litigation, the most crucial element is the contract itself. The contract serves to clearly define the rights, obligations, damages, and liabilities of both parties. The party making a claim contrary to the contract bears the legal responsibility of proving it. A mere verbal agreement or an incomplete contract may not be sufficient to establish the other party's responsibility. This is because the contract must accurately state the scope, amount, date, damages, and liability in order to ensure full compensation in accordance with its terms.
Liability for damages due to non-fulfillment of contractual obligations
If the other party fails to fulfill its contractual obligations, you have the right to seek reasonable compensation for the resulting damages. However, in order to establish a valid claim for liability and damages, it is crucial to include specific details regarding the extent of the other party's obligations and the damages incurred. It is necessary to carefully review whether the contract for the business transaction contains all the necessary provisions from the perspective of each party, and identify which provisions may be advantageous or disadvantageous to either party. Overlooking this aspect and entering into a contract using a generic standard agreement may raise uncertainties regarding the protection of your rights and interests in the event of a dispute. Therefore, it is essential for all company transactions to be documented in writing, and for important contracts to be thoroughly reviewed by experts with legal knowledge and experience, to proactively prevent future disputes and mitigate potential losses.