Commercial Contracts

These flashcards cover key concepts and definitions related to commercial contracts, including duties of parties in a sales agreement, business transfer processes, obligations in franchising, and the implications of breaches in contracts.

Contract of Sale

An agreement in which the seller agrees to transfer ownership of goods to the buyer in exchange for payment.

Duties of the Seller

Responsibilities including making goods available, ensuring delivery, and providing guarantees for damaged goods.

Breach of Contract

Failure to fulfill the terms of a contract, which may lead to claims for fulfillment or compensation.

Business Transfer

The process of transferring ownership of a business, including all or specific assets and liabilities.

Due Diligence

An investigative process to evaluate a company's business condition before a sale, examining liabilities, assets, and forecasts.

Obligations of the Seller

Duties including providing detailed information about the business and prohibiting competition until the transfer is complete.

Contracts Assignment

The transfer of rights and obligations under a contract, often requiring consent from all parties.

Business Leasing

A contract granting the tenant the right to use business assets in exchange for payment and requiring the return of the assets.

Franchise Agreement

A contract in which the franchisor grants the franchisee the right to operate a business system under certain conditions.

Obligations of the Franchisee

Duties including paying fees, maintaining secrecy of trade secrets, and ceasing use of trademarks at the end of the contract.

Pros and Cons of Franchising

Benefits include reduced risk and brand recognition, while drawbacks may involve operational dependence and higher initial costs.