A contract that follows your business and confirms your seriousness and professionalism
A contract as a functional and legally business tool adapted to a specific business model and industry that protects your financial and business interests and clearly shows that a serious and responsible partner stands behind the service.
In this text, through practical examples that happen in practice in modern business, especially in areas such as marketing, IT services, consulting services, (internet platforms, applications for online sales, advertising, online payment) we will try to bring the work experience from many years of practice and give an example of specific problems where contracts most often “fail”
A contract is not a only formality and should not be taken for granted.
The contract is a business tool that protects your interests, but also a document that clearly reflects the level of professionalism, seriousness and organization of your business.
A contract that is not clearly structured and does not follow the logic of the actual business process cannot ensure legal certainty and predictability of the development of the relationship between the contracting parties.
If you intend to cooperate with reputable companies and corporations, keep in mind that the draft contract is often the first concrete indicator of how reliable and organized a partner the service
provider is.
A contract that has a clear structure, a logical sequence of provisions and precisely defined rights and obligations sends a strong message of professionalism.
Practical problems – where misunderstandings and potential disputes arise
In practice, we very often come across contracts that neither in content nor in form reflect what was previously negotiated and agreed upon.
The reason for this is the use of generic templates or the unprofessional taking over of provisions from other contracts.
In a large number of cases, already in the first draft of the contract, significant contradictions and clear indications that the contracting parties have not adequately defined their mutual rights and
obligations are observed.
Such contracts not only do not provide legal certainty, they disrupt potential long-term business cooperation, and often become the main source of misunderstandings and potential disputes.
The most common mistakes
– the contract does not clearly define the subject of the obligation and the actual scope of the service, so it leaves room for different interpretations
– there is no mechanism for monitoring the implementation of contractual obligations copyright and intellectual property rights are not clearly defined
-termination clauses are not clearly defined, the consequences of termination, especially in situations where one party does not fulfill the contractual obligations
-clauses on compensation for damages and method of collection are not clearly defined in the event that the contracted work is not carried out or is not carried out in the manner agreed upon
– using clauses taken from foreign legal systems that have no legal force or enforceability in the legal system of the Republic of Serbia
Here a few examples from practice in which many can be recognized
Marketing services
A marketing agency contracts the management of a digital campaign with a larger company, including strategy, content creation and ad optimization. The contract, however, contains only the general wording “provision of marketing services”, without clearly defined scope of work, deadlines and measurable objectives.
When the client expresses dissatisfaction with the results and refuses to pay, there is no contractual basis on which to clearly determine whether the contract was performed in accordance with the agreement, nor a clause regulating termination or the consequences of unjustified termination.
Service design
The designer undertakes the creation of the visual identity for the client, with an agreed number of solutions and rounds of corrections. The contract does not contain a precisely defined number of revisions, deadlines for providing feedback, or a clause on additional compensation for changes outside the contracted scope. The project is extended for months, the scope of work increases several times, and the dispute arises precisely because of the absence of clear contractual boundaries and mechanisms for the protection of the service provider.
IT services
An IT company contracts the development of a customized software solution. The contract does not provide for development phases, testing methods, delivery acceptance criteria or liability in case of delay or non-functionality. At the same time, the contract contains clauses adopted from a foreign legal system that are not adapted to the regulations of the Republic of Serbia. In the event of a dispute, such provisions have no legal force or enforceability, which further complicates the protection of the rights of the contracting parties.
If you need professional help in drafting, interpreting and revising contracts that are not only formal documents, but usable, clearly structured and legally sustainable contracts, intended for real business practice and specific industry, feel free to contact us.
