The Importance of Commercial Contracts in the Cannabis Industry

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In today’s volatile marketplace amid the pandemic and a generally competitive cannabis industry with supply, demand and tax issues, it is more crucial than ever to set clear expectations between commercial operators. 

We often encounter clients that need to chase payment for their purchase orders or that have another dispute over a payment or performance issue in the commercial context. This is where terms and conditions are important and clear remedies for failure to perform come into play and to help mitigate risk of non-performance or a risk of a lack of meeting of the minds between the parties. Without appropriately setting the payment and performance terms and what happens in a default by either party, or without clearly delineating business expectations between parties, parties are often left to a dispute process that can become expensive and time-consuming. 

At Rogoway Law we regularly put together commercial agreements for our clients that help avoid ambiguity, streamline processes and keep operations running more smoothly, aligning party expectations and providing for remedies in appropriate circumstances, subject to reasonable cure periods. This need not be a lengthy or over-lawyered endeavor. It can sometimes simply be embodied in basic terms and conditions attached to a purchase order, by way of example. 

We can also assist if a dispute has arisen and the parties are in a distressed position because they have not put in place proper commercial contracts. This might look like a loan between the parties or a settlement agreement between the parties or some other reconciliation that is built into a forward-looking commercial agreement. 

We understand that business can move quickly and there isn’t always time to negotiate the various details in a contract, but we also believe there is great value in striking a reasonable balance and in creating efficient templates that our clients can use and customize for their specific purposes. 

We are available at any stage of the commercial partnership game, whether it be day one or day one hundred to help resolve complex commercial issues. We have seen great success when parties align and have clear understanding and we look forward to helping businesses thrive and succeed together.

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