Contract law

When a Business Needs Contract Management Setup

A legally strong contract works better when it is connected to the company’s actual processes. If managers make agreements in messengers, technical specialists perform work without checklists, acceptance certificates are sent late, and counterparty comments are not documented in writing, even a good contract template may not protect the business in a dispute.

Contract management setup is needed if a company:

• regularly enters into standard agreements with clients or suppliers;
• has several employees involved in sales, deliveries, services, or closing acceptance certificates;
• faces situations where counterparties refuse to sign acceptance certificates or pay the outstanding balance;
• wants to formalize the procedure for contract performance through internal instructions, checklists, orders, and standard documents;
• is preparing to scale its sales, deliveries, or customer support.

We help combine the contract, the company’s internal documents, and the team’s practical actions into a single system. This reduces the number of disputes and makes it easier to prove proper performance of the contract if a dispute arises.

What Is Needed to Protect Your Interests or Rights When Entering into a Contract?

Entering into contracts for the performance of work is an important part of organizing and regulating business relationships. Any contract should reflect the parties’ actual intentions. Accordingly, the wording of the essential terms of the contract, usually the subject matter, price, and terms, should be unambiguous. It is also advisable to include in the contract all terms that the parties discussed and on which they reached an agreement. And, of course, the contract should provide for reasonable penalties for breaches of the obligations undertaken by the parties. 

Stages of a Lawyer’s Work in Drafting a Contract

The standard procedure for entering into commercial contracts is as follows: 

1. Discussion of the terms that are important to the Client, analysis of the Client’s situation, recommendations, and selection of the optimal contractual structure.
2. Due diligence of the counterparty.
3. Drafting a contract for the Client or making amendments to an existing contract.
4. Negotiating the contract terms and participating in negotiations.
5. Preparing the final draft of the contract based on the results of the negotiations and approval process.
6. Signing the contract by the parties. 

A lawyer may also be involved in preparing amendments, annexes to the Contract, and other documents.

What Types of Contracts Do We Work With?

We draft and assist with the execution of contracts and develop optimal contractual structures for individuals and businesses.

The most common types of contracts we work with include: 

• Service Agreement. Probably the most common type of contract used in business for the provision of various services.
• Sale and Purchase Agreement. Entering into real estate sale and purchase agreements is an important legal service that helps protect the interests of the parties to real estate transactions. This type of contract provides for the transfer of ownership of property from one owner to another and may concern real estate, vehicles, or other goods.
• Lease Agreement. If you need to obtain property for use, a lease agreement is the best solution. Property that can be leased includes real estate, which accounts for the majority of cases, vehicles, and other items.
• Supply Agreement. For businesses, we draft supply agreements for goods intended for subsequent resale. Supply may take place either within Ukraine or as part of foreign economic activity.
• Intellectual Property Agreements. Entering into agreements concerning intellectual property is an important aspect of legal work aimed at protecting the rights and interests of right holders. If you need to acquire an intellectual property asset, obtain the right to use it, or grant a license, agreements governing the disposal of property rights to intellectual property are exactly what you need.
• IT Agreements (Terms of Use, SaaS, NDA, NCA, NSA).
• Partnership Agreements. If you are starting a business and need to regulate your legal relationship with a business partner, we can also assist you with this.
• Transportation and Freight Forwarding Agreements.
• Franchise Agreements.
• Public Offer. If you want to sell products or services through a website or social media, a public offer is a must-have. 

This is only an approximate list of contract types. In practice, there are many more types of contracts, not to mention mixed contracts that combine the terms of several types of agreements. 

Cost of Legal Services for Drafting Contracts

The cost of a lawyer’s work depends on the scope, complexity, and urgency of the work. Based on our experience, we can say that a lawyer spends between 2 and 5 hours drafting a contract, depending on its complexity, provided that all necessary documents and information have been provided.

Contract drafting does not involve any additional expenses, except when the contract must be executed in notarized form. In such cases, the notary’s fees must be reimbursed.

If you need the contract translated into another language, the cost of translation services is paid separately. We can also assist with drafting contracts in English with the involvement of an English-speaking lawyer.

In addition to the packages listed on the page, we also provide the following services:

• preparation of annexes and amendments to contracts;
• preparation of Minutes of the General Meeting to confirm a significant transaction, if a significant transaction is involved in an LLC or an additional liability company;
• preparation of acceptance and transfer certificates or other related documents;
• termination of a contract;
• contract consultations or selection of the appropriate type of contract;
• assignment of contractual claims.

Each request is assessed individually, and the cost is communicated to the client at the start of the work.

Contract Extension

If the term of a contract is coming to an end, the parties may either enter into a new contract or extend the term of the existing contract.

The term of a contract may be extended by the parties signing an appropriate additional agreement or in another manner specified by the contract, such as automatic renewal. 

Contract Termination

A contract may be terminated in various situations. Most commonly, a contract is terminated upon expiration of its term or by mutual agreement of the parties. However, in practice, there are also options for unilateral withdrawal by one of the parties or termination through court proceedings. 

Tax Aspects of Entering into Contracts in Ukraine

When entering into a contract, it is also necessary to consider the tax implications of the activities carried out by the parties under the contract. For example, VAT payers should assess the risks of working with a new contractor and consider the possibility of recovering expenses resulting from the blocking of tax invoices due to the counterparty’s fault. The single tax regime also has its own specific aspects. It is also important to remember the requirement to use an RRO or PRRO. 

Form and Execution of a Contract 

Generally, a contract is concluded in simple written form.

However, there are cases when a contract is subject to notarization, such as a sale and purchase agreement for real estate or a gift agreement for property.

The law also allows contracts to be concluded and performed electronically. The most common example is a public offer. 

Contract Management and Administration by Our Specialists

A contract is a universal tool that can regulate any relationship between individuals or legal entities. Proper drafting of documents, their thorough review, and legal analysis are essential to protecting your interests in the event of any disputes, conflicts, claims, or bad faith conduct by a partner.

We are all adults, so we understand that any relationship that creates mutual obligations requires confirmation and guarantees in the form of an official document. There is little point in even giving examples from practice that demonstrate the need for a contract. If you want security and confidence that your counterparty will fulfill its obligations, sign a properly drafted document.

Contractual agreements and contract management require meticulous work from all interested parties as well as from lawyers, who ensure that the contract has the appropriate form and content.

How Can We Help You?

Legal services, including contract drafting, play an important role in ensuring legal protection. A properly drafted document is an important mechanism for minimizing your risks. Contract work requires close attention to detail, as well as comprehensive knowledge of various areas of law.

Our friendly team will:

• Help you develop an optimal structure for any contractual relationship, including entering into agreements with suppliers;
• Thoroughly assess the entire situation and the pre-contractual relationship as a whole;
• Help you draft a standard or customized contract of any type;
• Take your interests and requirements into account when preparing the draft contract;
• Conduct a legal assessment of potential risks and explain them to you during the consultation.

We are always happy to provide legal services related to contract drafting and execution. The quality of our services can be judged by the number of Clients who return to us again and again, demonstrating their trust. In turn, we respond to this trust with exceptional quality of service.

If you need legal assistance with drafting documents and contracts of any kind, give us a call!