Contracts or agreements between businesses

Faith28

Free Member
Dec 2, 2005
2,111
150
London
Hi all,

I am in the processes of setting up a publishing business. My printers are out sourced. They're based abroad. What sort of contract do I need if another business wants mine to print card games for them (through my contacts)?

I guess it's a general contract agreement between two parties but is a quote or invoice that's agreed upon as good as a contract?

Legal stuff has always been over my head but I just want to make sure everything done is correct.

Eiman
 

bwglaw

Free Member
Apr 8, 2005
4,567
242
Richmond, Surrey
Faith28 said:
They're based abroad

A contract can be drafted according to the laws of England and Wales and a clause will need to be incorporated that the printer's abroad agree that the contract is governed by the laws of England and Wales and agree to the jurisdiction of the Court of England and Wales.

International contracts become far more complex when the above is not implemented and not clear which country has jurisdiction and the Courts tend to look at the intention of the parties and the relationship during the course of dealings between parties to ascertain which law applies and has jurisdiction.

In the event of a dispute, you will have the right to bring a claim in the County Court, especially if the contract gives jurisdiction. In some cases the claim has to be served by the High Court which has special powers to issue proceedings against an international company.

You need to bear this in mind, in the event of a dispute, can you really afford high legal costs? Is the company you are dealing with of a good standing?

Which country are they based as this will make a difference

What sort of contract do I need if another business wants mine to print card games for them (through my contacts)?

Will you be keeping your relationship with the printer anonymous and pass any printing work to them? Or will you actually be 'referring' your client to the printer direct? What kind of relationship do you want between clients and the printer?

If you are looking to have a contract with clients in the UK to print card games (using your associate overseas) and you wish for the associate to remain anonymous then a 'contract for services' would be sufficient between you and the client.

Bear in mind that if you enter into an agreement with a client to udnertake an order i.e. say 1000 cards, and if the order is not satisfactory in quality, or a shortfall or whatever, you will remain liable. It will then be up to you to claim against the printer. It is a risky situation

If you wish for your clients to be aware of the printer overseas and wish for them to have an active part in your client relationship, this is more complex and would become more of an Agency Agreement.

is a quote or invoice that's agreed upon as good as a contract?

It is never as good, but it can be used as evidence of a contract and any terms agreed, express or implied. In any dispute a Court will look at the intention of parties, the contractual relationship, what terms were agreed etc. An invoice, order form and specification goes some way in achieving this, but not entirely.
 
Upvote 0

Faith28

Free Member
Dec 2, 2005
2,111
150
London
Firstly thanks for the very thorough response.

Secondly in response to some of your questions:

My printers are based in India. I will be keeping them anonymous as really this is the crux of my business...i.e. a contact from a cheaper supplier.

So I need to have 2 contracts in place
1) between myself and my suppliers
2) a generic contract between business and clients

I suppose I shall have to do the inevitable visit a lawyer or is there something I can use online that you know of?

BTW how much will such matters cost to put in place?
 
Upvote 0

bwglaw

Free Member
Apr 8, 2005
4,567
242
Richmond, Surrey
Faith28 said:
Firstly thanks for the very thorough response.
Lawyers have to be thorough and I try my best on a forum! ;)

My printers are based in India.

As I had suspected. You can put a standard contract in place with the clauses I mentioned earlier. However, the risks remain, that the liability is entirely with you towards your client if the Indian printers do not deliver, etc

So I need to have 2 contracts in place
1) between myself and my suppliers
2) a generic contract between business and clients

The relationship bit I am not too clear on. I understand you need a contract between you and the Indian printers. However, you mention a generic contract between business and clients. When you say 'business' this seems to imply a third relationship. To clarify, there will need to be a contract between YOU/YOUR COMPANY and your CLIENT, assuming I have understood the relationships to be formed under contract.

I suppose I shall have to do the inevitable visit a lawyer or is there something I can use online that you know of? BTW how much will such matters cost to put in place?

I can draft the contracts for you for a fixed fee which I am happy to quote upon full instructions with any head of terms, i.e. what has been agreed. I can be contacted at [email protected]

I would not advise using online documents since they may not be specific to your business and may well miss out vital clauses to cover yourself. You get what you pay for really and if a matter goes to Court, that is when the document is tested whether it is value for money.
 
Upvote 0

Latest Articles

Join UK Business Forums for free business advice