The functions of a lawyer cut across various aspects of society, varying from social to business to economic and even family institutions. However, society seems oblivious to this fact. Before delving into the nitty-gritty of this topic, it is important to explain what business-to-business (B2B) transactions entail.
A B2B transaction is a form of transaction where one business makes a commercial transaction with another, such as one involving a manufacturer & a wholesaler or a wholesaler & a retailer. B2B transactions would naturally occur in a supply chain, where one company may purchase raw materials from another to be used in their manufacturing process. This type of transaction is normal in many industries such as auto-mobile, tech, construction, healthcare, food and beverage, real estate, engineering, education, etc.
Some examples might be where an eatery consults with an independent baker for regular supply of cakes for sale in the eatery or where an automobile company purchases parts like tires, batteries, and other electronics from various companies and in turn assembles them into a whole car, or even where a hospital consults a drug producing company for regular supply of drugs and other medical equipment needed for their own smooth day-to-day running.
In summary, B2B transactions are a special kind of partnership between a company and another in order to satisfy each other’s goals and interests, and in arrangements like these, a lawyer’s skills and advice would be of utmost importance in all transactions that transpire between these companies.
For every kind of transaction or contract a business or person engages in, certain documents must be signed as evidence of the transaction, stating all its terms. Lawyers are armed with the knowledge of preparing different types of documents in business transactions, and only they are able to determine the type of documents that must be prepared for a specific business transaction.
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A lawyer would put in place a strong functional legal structure that takes care of his client’s rights and obligations. In other words, involving a lawyer in B2B transactions should not be compromised or overlooked, as those documents may at the end of the day be your safety net or what may protect you from losing your investment.
A lawyer’s role in B2B transactions includes, but is not limited to:
- Preparation of Partnership Deed for the parties, if it is a full-fledged partnership. In preparing this Partnership Deed, the lawyer considers nature of the business, share capital or financial capacity of each company, its shareholders, credit worthiness of the companies, mode of sharing profit and loss, Dispute Resolution Mechanisms that must be employed in case of disputes, etc.
- Examination and interpretation of clauses and ambiguous words contained in the agreement brought forward by the other party in order to ensure his client’s interest is properly secured and not exploited in any way. Where necessary, a lawyer may introduce new clauses in favor of his client into the agreement, or he may entirely condemn the agreement as practically impossible for his client to fulfill.
- Provision of advisory functions.
- Ensures legal compliance of his client to not only regulations stated out by the law but also maintenance of standards required by the regulatory bodies in charge of the sector.
- Performs Post Partnership Agreement duties.
- In instances where disputes arise, a lawyer employs the best dispute resolution mechanism that minimizes damage and is not in any way adverse to his client.
Finally, these and many more are the roles of a lawyer in business-to-business transactions, and an experienced corporate lawyer will be able to lend his expertise to ensure that all business transactions are done legitimately and in the interest of parties, especially ensuring that his client’s interests are duly secured.
Do not allow yourself to be exploited. Contact a lawyer today to help take legal care of all your transactions. If you need to talk to a business lawyer, click here