Eversheds International
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Commercial Contracts
Sale and supply contracts
Today’s challenges
Every business relies on an effective balance between its contractual relations with suppliers that produce inputs into the business and those contracts which secure sales and benefits of the business's internal activities.
In these credit constrained times it is particularly important that you have strong relationships with your suppliers so should they face difficulties that may prejudice you, you can force them to keep you on their priority list. Sophisticated suppliers now look at the nature of the contractual relationship as well as the business volumes when forced to make this type of decision.
Likewise, you need to know the effective nature and extent of your arrangements with your customers so that the volumes and margins you are anticipating are accurately reflected and can be realised.
So the game plan, when establishing sale and supply contract arrangements, is to knit the two together and avoid an imbalance in risk which sits in your business.
How Eversheds can help
Through our dedicated commercial contracts group, a group of lawyers who focus purely on capturing, reviewing and improving contractual relationships (we call them ‘relationship lawyers’), Eversheds can help you build a suite of contractual documentation that recognises the key elements of risk and reward and balances them in the way that you intend. As well as negotiating and concluding some of the key commercial relationships on your behalf we can work with your procurement and in house teams to implement contract processes that you can run internally to minimise risk in the most cost effective manner. One of the key areas to focus on is creating an understanding and appreciation of the things that really matter and how they can be reflected within your business - it is imperative that this extends not only to your procurement team but to the commercial sales teams within your organisation.
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