A contract is recognized as an agreement between two or more persons on the establishment, amendment, or termination of civil rights and obligations” (Article 389.1 of the Civil Code of the Republic of Azerbaijan).
“Natural and legal persons are free to conclude contracts and determine their content” (Article 390.1 of the Civil Code of the Republic of Azerbaijan).
Proper drafting of a contract is of great importance as it helps prevent misunderstandings, conflicts, and disputes between parties.
Proper drafting of a contract is important for several reasons.
Firstly, it is clarity and unambiguity: the contract must be clear and understandable to all parties. The terms of the contract must clearly define the rights, obligations, and responsibilities of each party. Clarity in contract formulations helps avoid ambiguity and misinterpretation, which can lead to conflicts.
Moreover, one should not overlook the protection of interests, as a properly drafted contract protects the interests of each party. It should take into account all necessary aspects and conditions of the transaction to ensure a fair distribution of rights and obligations. Insufficiently detailed or incorrectly formulated contracts can harm one of the parties. And this, in turn, can lead to a conflict between the parties.
Furthermore, compliance with legislation when drafting a contract should not be forgotten, as it must comply with the applicable legislation. Some types of transactions require certain formalities or special conditions that must be included in the contract. In particular, the conditions of a contract for the sale (delivery) of goods concluded between legal entities of the same country differ from those of a contract for the sale (delivery) of goods concluded between legal entities of different countries. In the first case, the determining basis is the domestic legislation of one country – from delivery conditions to dispute resolution, while in the second case, international private law with its own peculiarities comes into play – from delivery conditions under Incoterms to the choice of applicable legislation in the event of dispute resolution.
An improperly drafted contract can lead to legal problems.
The range of legal services provided by the company “Financial Chain Corporation” also includes consultation on contracts – drafting contracts from scratch, as well as analyzing contracts provided by clients.
