It is easier than ever before to set up and run businesses in foreign countries. This, however, introduces another twist to your operation since you need to observe both commercial and immigration laws in your business.
When running a business, there are several contracts you will sign from time to time. Different clauses will dictate what is expected of your company and the other parties in your agreement. Boilerplate clauses are those that do not often fit into the overall information of your agreement but are essential.
These clauses might impact the commercial and immigration law that regulates your business in Townsville. It is thus vital to get an attorney’s input when signing any contract to guarantee you are within the law, and your interests are well-protected in the agreement.
Here are some of the boilerplate clauses that might form part of your commercial contract.
Assignment Clause
This explicitly states that your contract’s terms cannot be allocated to another party. The assignment clause indicates that the parties in the agreement have not assigned their duties or rights to a third party. This essentially restricts your ability to subcontract your responsibilities in the contract to a third party.
Force Majeure Clause
This is also called the “act of God” clause. It indicates that your contract might not be performed in the event of an unforeseen circumstance like a weather-related event. If for instance, you as a construction company enters a contract to build something but cannot continue due to adverse weather, this clause will protect you from litigation. You will thus not be prosecuted for breach of contract.
Confidentiality Clause
There are various underhand tactics used for defeating your competitors, but the most common is leaking information that should otherwise be confidential to a third party. You will be privy to various pieces of confidential information time and again when operating a business.
The confidentiality clause binds you not to disclose such information to a third party. This is common when one of you in the contract has provided some trade secrets to another or allowed a party insight into some information that is not open to the public.
Amendment Clause
This indicates that the terms of your contract will only be amended by entering another written agreement. The amendment clause is optional, and most people assume they can do without it. It will, however, protect your interests more so if you need more time or resources to finish a project.
Severance Clause
This marks the most important boilerplate clause in a business contract. The severance clause indicates that if any of the provisions in your agreement are deemed invalid or void, your contract remains enforceable. This will mean only the void provision will be canceled in the contract.
Many businesses had incurred significant losses when they overlooked a seemingly insignificant clause in their commercial clause. This should not be the case for you.
Remember that as an immigrant, the mistake might also affect the status that you will have worked so hard to attain. Your best choice is to have an attorney on a retainer basis. This way, you have his/her input inexpensively into all the contracts you sign.
