Commercial Contract

A commercial contract is a contract between two parties which mostly relates to a commercial issue. There is no requirement for the contract to be written. Unlike non-commercial contracts a commercial contract is viewed by the courts to be legally binding (unless otherwise indicated in the contract itself).

For policy reasons, a commercial contract may arise between two commercial parties or between a commercial party and an individual, but it is unlikely to arise between two private individuals. The rationale for this policy can be illustrated with the following example. A restaurant and a wine supplier should be able to seek court intervention when a dispute between them arises. The same could be said for a car dealer and private customer. However, non-commercial agreements such as one between parents and their child regarding allowance should not be a matter for the courts.

You have probably been party to hundreds of commercial contracts, from taking public transport to buying a mobile phone. If you have experienced complications regarding any of these and are considering legal action, there are a few things you should consider:

1) The limitation period for breach of contract is 6 years from when the breach occurred

2) If the agreement was not well written (or not written at all), the court may find it difficult to establish the exact intention of both parties. It is the intention on which the courts base their interpretation of the contract

If you would like to obtain legal advice on a commercial contract, Contact Law can put you in touch with a local Commercial Solicitor free of charge. So, if you have any questions or would like our help in finding local Commercial Solicitors please call us on 0800 1777 162 or complete the web-form above.