What Solution You Would Prefer for Business Contract Dispute

By definition, a contract is qualified as commercial when its object is commercial or when it is concluded by a merchant. Its field of action is therefore extremely broad. The term commercial contract includes a significant number of contracts defined by law known as “named” contracts. So you can ask Are MOU enforceable. There are lawyers who would brief that you. For example:

  • Commercial sales contract
  • Commercial agency contract
  • Commercial distribution contract
  • Franchise agreement

Other contracts so-called “unnamed” contracts are not defined by law and have no specific legal regime they are born out of practice. Their qualification will therefore often be largely decorrelated from the effects they are intended to produce. For pleading requirement for promissory estopppel there are choices. For example:

  • Service provision contract
  • Business introducer contract
  • Commercial partnership agreement


If the contract is concluded between a trader and a non-trader, this is called a “mixed” act. It therefore has both a civil and commercial character. If the contract is part of the cross-border framework, it will then be an international commercial contract. So it is up to you regarding reliance on broken promise.

Commercial contract: pre-contractual negotiations

It is rare that a commercial contract is concluded immediately. In general, it is preceded by talks or even the establishment of pre-contractual documents. The breakdown of talks may cause harm to the one who negotiates. Thus, the brutal breakdown of the talks is punished, especially when they have been going on for some time.

In addition, certain pre-contractual documents can be drawn up. For example, the agreement in principle is characterized by the commitment to make an offer or to continue negotiations in order to reach the conclusion of the commercial contract. However, the parties do not undertake to conclude it and this document gives only partial information on the future contract. Conversely, the preliminary contract presents the elements of the commercial contract in a precise manner. This document is a document prior to the final contract.

During the negotiation phase, you may also be required to conclude a confidentiality agreement. If you exchange sensitive and strategic information, then you make sure that it will remain confidential.

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What rules govern the law of commercial contracts?

The formation of the commercial contract is subject to the same obligations as any contract: the parties must have the capacity to contract and must express a non-vitiated consent for example, people who signs a contract because he is the victim of violence have vitiated consent, and the content of the contract must be lawful and certain. Otherwise, the latter may be canceled.

There are also some special features of commercial contracts:

If both parties are commercial, the principle is freedom of proof. Any method of proof is therefore admissible. There are, however, some exceptions. For example, writing is required for deeds on goodwill.

The sudden termination of an open-ended commercial contract is penalized. The purpose of this rule is to protect small distributors, service providers or suppliers for whom such a break can be fatal. Notice is therefore required.

Standard clauses of the commercial contract

Several points must be provided by the parties, in different standard clauses:

Purpose of the contract: it provides a framework for commercial relations. The object describes the objective sought by the parties.

Date of entry into force of the contract and duration: the contract may be for a fixed or indefinite period. Certain commercial contracts contain specificities. For example, the commercial lease contract lasts in principle 3, 6 or 9 years minimum.

Price clauses: they allow the parties to fix the price of the services, the moment when payment becomes due and possibly the terms of price revision.