Properly drafted, thoughtful business agreements are crucial to the success of any South Carolina corporation, limited liability company, partnership or joint ventures. Businesses depend on business agreements with other businesses, individuals and partners to operate efficiently and effectively. It is highly recommended businesses use formal written agreements when conducting business transactions that state the parties’ expectations and provide dispute resolution mechanisms.
Business agreements are essential because they help account for negotiations, agreements between the parties, specific terms and conditions. Essentially, they ensure the parties are getting what they bargained for and if a conflict arises, written contracts are enforceable by a court. Well-drafted business agreements ensure the parties’ interests and expectations are represented.
Business agreements state the terms and conditions imposed on a particular transaction or business formation. They state what the duties and responsibilities of the parties are and delineate how disputes, if they arise, will be dealt with.
Business agreements are subject to an implied covenant of good faith and fair dealing. The covenants of good faith and fair dealing are included in a well-drafted business agreement. This means that parties to business agreements agree to act in good faith and to deal fairly with each other for mutual benefits. The covenant of good faith and fair dealing gives a party discretion to perform or not perform under certain conditions, and parties must act consistently with the parties’ reasonable expectations, and must exercise discretion.
Business agreements facilitate the enforcement of contractual bargains. Our corporate lawyers draft business agreements that ensure our clients’ interests are bargained for, negotiated for, and accurately represented.