Clerwood Legal Services Awareness Articles

Commercial Awareness

Commercial awareness is important in helping avoid pitfalls and also in recognising opportunities which arise in business.

Being commercially aware means “being able to appreciate the relationships, processes, risks and costs involved in commercial transactions”.

The most important of these areas is relationships as the viability of a business depends on the success of contractual relationships.

Whilst these contractual relationships ought to run profitably and safely, too often they don’t. Many problems occur due to lack of commercial awareness, which can result in recourse to the courts and expensive legal fees - or business failure.

And on the other side, recognising opportunities to secure and add value to your business is equally important but too often missed.

Commercial awareness issues arise in many situations. Let's look at these situations in terms of four phases in the contractual relationships of a business:-

Nothing in these awareness articles are intended as legal advice. If you have a specific legal requirement or query you should consult a solicitor directly.