ROLE OF CORRECT CONTRACT IN BUSINESS
The errors made in the contract with the buyer or customer can cause the following unfavourable situations:
- actually delivered goods will be unlawfully not paid under the pretext of inadequate quality of the documents or their improper execution;
- provided services will have to meet more and more requirements;
- the company will incur losses, receive less funds.
The errors made in the contract for purchase of materials, services, rent of premises can result in the following:
- the company will not receive the necessary raw materials;
- the company will be idle due to the delay in delivery or improper work of the contractor;
- the company will be forced to look for a new warehouse or office in a hurry because of the sharply increased rent.
RISKS OF INCORRECT CONTRACT
ADVANTAGES OF GLOBAL ADVOCATE
The incorrectly prepared contract can also cause tax risks, for example:
- Due to the error in the contract, a single tax payer will have to tax not its commission but the whole amount of the funds received.
- Due to the incorrect wording, a VAT payer will have to impose a tax on its services for non-resident customers.
Of course, a list of tax risks is not limited to the abovementioned situations. We mentioned only the most probable errors in the contracts and their tax consequences.
Therefore, when building a business scheme, it is important to think over not only the main aspects of its work but to work out all the contracts under which the business will operate as clearly and thoroughly as possible.
TO ORDER PREPARATION OF CONTRACTS AND THEIR LEGAL ANALYSIS AT GLOBAL ADVOCATE
Our experts will do the following:
- analyze the existing contracts and contractual obligations;
- clearly explain their contents and all terms of the contracts;
- evaluate effectiveness of contractual provisions;
- identify existing and potential risks, give recommendations on how to avoid traps of the counterparty;
- predict the compliance of contractual terms with expected result;
- develop a plan to reduce or eliminate risks;
- provide advice on amendment of contract in the interests of the customer.