The value of an enterprise, its ability to prosper and even survive depend considerably on the quality of its contracts. A fortiori, one could say that the real identity of a company lies mainly in the sum of its contracts, since these contain the major part of its rights and obligations.
The supreme interest of an enterprise therefore requires it to monitor the risks and legal issues of its contracts. This consideration starts from tthe incorporation of a company with the assembly of adapted contractual documentation taking into account the specific legal, regulatory and material constraints.
Contract Monitoring and audit
It is then essential to ensure that all contracts are and remain adequate and enforceable.
It happens frequently that contracts do not accurately reflect what the parties have agreed to, or may leave space for diverging interpretations of the intent of the parties. The reason hereof can be that the contract has been written “on the corner of a table”, but also that the circumstances that prevailed over its inception have changed in a way that the contract is no longer adapted to the situation.
When an enterprise identifies such a deficiency, it will often have a marked interest in rectifying the situation (for example, in the case of a change of decision-makers of a trading partner, as a result of a transfer of business or succession).
Prior verification ahead of a entering into a contract.
In some cases, the conclusion of contracts by a company requires that it first verify the viability of its potential co-contractors. Thus, for example, in the conclusion of a commercial sub-distribution contract, the sub-distributor is legitimately entitled to ask the principal distributor for a confirmation of an existing distribution agreement. Moreover, in the case of shares purchase, the buyer must evaluate the quality of the company’s existing contracts (and, if applicable, the latter’s partners’ contracts) and the related risks.
Seek legal advice
Legal advice plays a crucial role in helping the decision makers of a company to understand the meaning and scope of its contracts, to identify and assess risks, and to identify appropriate measures.
Our services
We provide an ideal forum for discussing strategic issues of interest to a company and stimulate your entrepreneurial project.
We are an ideal reference for the debate of strategic issues concerning your company, and are keen to support your entrepreneurial projects. For major projects requiring additional human resources, we can offer support to the directors through the posting of a corporate lawyer aiding on a regular basis (for example, as an external project manager or to ensure the proper implementation of our legal advice within a company).
