Due to the principles of freedom of a contract, parties in Australia may consent to any terms and provisions by entering into business agreements as long as the terms and provisions do not violate law. Despite this according to expert commercial lawyers Summers Legal, it is possible to discern certain patterns that drive Australians to include specific provisions in their business agreements. To start with, scope and application of an agreement is almost always negotiated and reflected in the agreement. In this part of the agreement, the parties provide that the overall purpose of their contract is to delineate their mutual professional rights, duties and responsibilities, as well as the nature of services, which are being provided under the terms of a separate written agreement, exercised by them.
Introductory part and status disclosure may also be included as inseparable parts of a business agreement under Australian law. In this constituent, the contracting parties affirm that they are authorised to provide services in question or sell goods at issue. Also, they reveal the legal nature of their joint enterprise, by stating what types of business entities they operate as. To elaborate further, the provision of services may be specifically regulated and discussed in a separate part of a business agreement. In this part, the parties to a contract may delineate how they are going to negotiate all commercial issues and place orders. It especially pertains to contracts of supply. Price and costs of service provided or products sold constitute a group of most important provisions in the area of business agreements. Usually, one party that provides services is keen on specifying its remuneration, which is either a fixed amount for the whole spectrum of services or a milestone of a project, or a percentage of the insurance premium paid by the consumer of the services that permits the provider to consent to other provisions of the contract.
To proceed further, mutual rights and duties may be considered another major part of a business agreement. This constituent of the agreement may be captioned as responsibilities. That is responsibilities encircles more than entitlements and obligations. It may also include principles, functions, limitations and delimitations of specific business activities.
Also, it is extremely interesting to note that many business agreements contain provisions regulating the rights of third parties. Unless otherwise agreement between the immediate contracting parties, a business agreement is usually intended to be enforceable by any third party except by subsidiaries of the parties. Also, governing law may be another part of miscellaneous provisions that set what law will regulate the terms and conditions of the parties’ relationship. The value of this part of a business agreement manifests itself particularly in case of disputes and disagreements between the contracting parties.