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Top Tips For Business To Business Contracts

Businesses make deals with each other all the time for the provision of goods and services. Business to business contracts are essential in just about every industry. Here are a few tips to help you navigate the next contract your business signs.

Make Sure The Numbers Add Up

Accountants working for established partnerships like F9 Consulting are experienced enough to efficiently look over business to business contracts to make sure that everything adds up. A surprising number of contracts contain erogenousmath and optimistic figures. No matter what kind of business tobusiness contract you are considering signing, it is worth getting a professional number cruncher to look over it for you before you put pen to paper.

Make Sure Both Parties Are Insured

It is very important to make sure that both signee parties are fully insured. Business insurance needs to be in place to make sure that any losses caused directly or indirectly as the result of the contract signed can be claimed back. Most business lawyers will insist that both signees of a contract have comprehensive general liability insurance. General liability insurance ensures that products and services that are not up to scratch and cause damages are seen as the financial responsibility of the provider.

Know Your Rights (Or Lack Thereof)

Business to business contracts are not covered by the Consumer Rights Act. This means that businesses must be incredibly careful before signing any kind of contract. There are, however, some rights that a business has to contest contracts.

Know How To Contest

Just like a regular consumer, a business has the right to contest the terms of a contract if they are unrealistic or unfulfilled. Businesses need to protect their revenue streams, and poor contracts can seriously impede revenue. Business contract terms are deemed to be ‘unfair’ if:

They Contradict Good Faith

Contract terms must be agreed in a fair and transparent manner – in good faith. If the terms of a contract are deliberately obscured or hidden, then it will contradict this. Contracts signed under any kind of duress are also not considered to be in good faith. Because of the slight vagueness of this term, legal action is usually needed if a company wants to contest a contract on the good faith principle.


If there is a significant power imbalance between the buyer and the seller in favor of the seller, then the buying party can sometimes contest terms. Imbalance, however, is a normal part of business contracting. Only in extreme cases will contracts be successfully contested due to imbalance.

Illegal Terms

Suppliers of products and services cannot add exclusions in a contract that let them get off free for failing to provide a service or for providing poor quality products. They can also not legally excuse themselves of theoretical responsibility for injury and death caused by their products or services. If this kind of clause has been snuck into a contract, then it can be contested – usually with success.

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