How does Contract Review and Legal Assistance add value to your business?
Corporate structuring and business planning is essential to business success. A huge part of successful planning is completed by successfully regulating your business activities by contract and the use of other legal documents. Below, we provide some key examples of how we have helped clients obtain value from sound legal planning.
a) Increasing your Profits
David has a Service Agreement prepared for a major client, which includes a clause for price revisions in exigent circumstances and a clear scope of work. As such, when the client starts giving him more work, he ensured that the client was obliged to increase the compensation paid to his company. The clauses of the contract are carefully worded to tighten the scope of work, and disclaimers are included which allow David to legally charge for more work hours, and service costs incurred. As a result, he doubles his annual profit from just one client, due to a carefully structured services agreement.
Hakeem, an industrial supplier of cement and other raw materials, includes a clause which allows him to increase the price per unit by 5% on an annual basis. The customer is obliged to accept this clause, due to other agreed benefits Hakeem provides, such as transportation of goods. As a result, Hakeem increases his profits year on year, without having to endure difficult and lengthy negotiations with the client, which would risk him losing his business.
b) Lowering your Costs
Mobility Ltd., a logistics company, includes clauses which require the customer to take on additional shipping charges and the risk of loss, for delivery orders. When unpredictable customs and tariff charges are imposed by the US government and China, Mobility is secure, as they have ensured that their customers delivering goods from the UAE and Bahrain, bear these costs on their own.
c) Securing Risks and Preventing Disputes Before they Begin
Mohammed’s client has defaulted on payments due under contract. Under the dispute resolution clauses of his contract, Mohammed’s client is required to compensate Mohammed for all legal fees, and attend mandatory arbitration proceedings in the Dubai International Financial Center. This limits the legal fees for Mohammed, and gives assurance of a decision in his favor. Due to this pressure, the client decides to settle in full after some prompting.
David has a disgruntled business partner who wishes to blackmail David by filing a claim in the courts. However, David has a clear, well worded and carefully structured agreement, which lists the obligations of David towards his partner, and requires a mediation and thorough settlement process prior to suit being filed. As a result, in the pretrial mediation process, enough evidence is unearthed to clearly vindicate David, and the suit is dropped before it even comes to life.
Afterthoughts
Careful business planning and legal planning can seriously improve the quality of your business. It also need not be extremely expensive. Our current service plans provide value based fee packages, which aim to ensure the value you are getting and paying for. Contracts and policy documents provide a value in and of themselves, and its important to have an accurate estimate of just how valuable they are for your business.
For more information on our experience, please have a look through https://www.borderlesscounsel.com/