Подготовка и оформление договоров. На что обращать внимание?

Preparation and execution of contracts. What to pay attention to?

Contract law in Israel, with certain nuances aside, is not much different from the classical European law we are accustomed to.

In the modern world, a contract is the starting point of any commercial relationship. Moreover, contracts are widely used in family law, education, healthcare, that is, in areas where there is a need to formally record agreements.

The process of preparing and formalizing contracts in Israel

The work on drafting and preparing a contract is a lengthy process that requires time investment and an excellent knowledge of legislation, sometimes not only of a specific country. However, the result is worth it, as a properly drafted agreement guarantees that the parties will precisely fulfill all previously reached agreements and will serve as a guarantee of compensation for damages in case of non-fulfillment of the contract terms. It is always wiser to entrust the matter to a specialist who knows how to formalize a contract and will help you correct all errors before signing the document. This is much less troublesome than subsequently seeking resolution from partners for correction and losing your money and time.

What contract law includes

Contract law is rightly singled out into a separate section of jurisprudence, and more and more lawyers are choosing contract relations as their specialization. This branch of law, in essence, includes several types of services:

– preparation of a contract;
– drafting a contract project and its approval;
– legal examination of contracts;
– consultative and claim work, document correction, etc.

How to prepare and formalize a contract in Israel

When drafting a contract in Israel, first of all, attention should be paid to its terms – that is, the subject of the contract, price, terms – all those essential parameters that are of principal importance for the parties of the deal. The subject of the contract can be real estate and rights to it, securities, property rights, etc. In addition, the agreement must specify the scope of rights, the order and conditions of their transfer and use, and provide information characterizing the subject of the contract. The further development of the parties’ relations will depend on how accurately and clearly the contract terms are stipulated. In case of serious disagreements, the judge will primarily rely on the provisions of the section specifying the agreement terms.

Important! It is necessary to check that all the conditions specified in the contract comply with the legislation. If at least one of them contradicts the norms, the entire contract may be declared invalid.

Before formalizing a contract, it is necessary to ensure the legal capacity and competence of the parties. This means that you need to make sure in advance that your partner is competent, has the right to represent the company’s interests, and sign documents on its behalf. In practice, when concluding a contract, you can encounter an unscrupulous counterparty who does not intend to be responsible and fulfill obligations under the contract. At the same time, the company will state that the employee who signed the document did not receive the corresponding authority. Such situations are a popular way of fraud.

Forms of contracts

The contract must be made in writing, notarized or by a lawyer.
Interesting fact: every day, without realizing it, we conclude conclusive contracts. These are minor everyday agreements when performing such simple actions as shopping in a store, traveling on public transport, going to the post office, etc. By entering into such relationships, we accept the public offer of the counterparty, and we do not sign any papers.

When concluding a contract, it is necessary to make sure that it stipulates the conditions under which the agreements and obligations are considered fulfilled. As a rule, fulfillment implies the performance of certain actions or abstention from performing them. The way to terminate the obligations taken is their proper execution. Speaking of the concept of “proper execution,” we mean that the execution is performed:

1. By the proper party;
2. In favor of the proper party;
3. On the proper subject;
4. At the proper time;
5. In the proper place.

Speaking of the proper subject, we mean that the party that has taken on obligations must provide the other party with a material benefit, that is, perform a certain work, transfer a certain good, pay a certain amount. The contract may specify what exactly ensures the fulfillment of obligations – collateral, penalty, third-party guarantee , or deposit.

What is important to pay attention to when drafting a contract?

When working on formulations, one must not allow vague or ambiguous phrases. Remember that every word in the contract has weight. If you do not understand the meaning of a phrase, sentence, or term, do not hesitate to demand its replacement or involve specialists to clarify its essence. Remember that in case of conflict or dispute, your counterparty will try to turn every inaccurate formulation to their advantage. It is also possible that your partner intentionally includes such turns of phrase, intending to use them later.

When drafting a contract, one should be cautious in using international trade terms, for example, those related to logistics or delivery conditions. You must be absolutely sure that you and your partner understand the essence and meaning of the document down to the smallest detail. In the absence of clear explanations in the contract regarding international terms, there is a high likelihood of future difficulties with ambiguous interpretation in contentious situations. For example, there may be a dispute about when goods can be considered delivered, or when risks transfer from the seller to the buyer.

If you are planning to formalize a contract in Israel, it is worth considering hiring a lawyer. Only a qualified specialist will help avoid mistakes, take into account the interests and express the client’s wishes with clear formulations, while taking into account all legal requirements.

The law office of Alex Zernopolsky is a team of professionals in contractual legal relations who will advise you on how to formalize a contract, or take over its drafting and support, protecting you from potential errors.

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