Iowa Renewable Energy Private Limited (Referred as 'Iowa'), a company engaged in solar power generation, entered into a Power Equipment Supply Agreement with Green Grid Engineering Limited (Referred as 'Green Grid') for

When the business starts to make agreements with other businesses for supply or sale of goods and services, then a proper commercial contract is required to record these agreements and protect the parties in case of a dispute. Commercial contracts are legally enforceable agreements between two or more parties. They are agreements used to govern commercial activity(s) and involve with the commercial aspects of a product or service. They guarantee that parties follow their word and streamline transaction flow. The terms of a commercial agreement are usually quite formal and vary for each organisation and transaction. A commercial contract meets two objectives: the first is that it must simultaneously advance and protect the business interests of the parties. the second, and often overlooked, goal of a properly drafted commercial contract is that it should not unduly disturb or endanger the commercial arrangement that the two contracting parties have struck. Important Clauses of commercial Agreement between Iowa Renewable Energy Private Limited and Green Grid Engineering Limited can inter alia include: Confidentiality clause to prevent unauthorized disclosure of confidential information. Dispute resolution including arbitration clause stating how disputes arising from the transaction will be handled. Details on the court that will have jurisdiction over matters arising from the transaction and the governing law, especially for domestic and international cross-border transactions. Termination clause detailing how any party can opt-out of the arrangement and conditions that will end the contract. Indemnity clause to protect parties from liabilities caused by a breach of contract or negligent acts of third parties. Liquidated damages clause to specify damages upon breach of contract. Force majeure clause to remove liability for failure to perform contractual obligation caused by unforeseen and unavoidable circumstances.