In the absence of this provision, the goods or services provided under the contract are guaranteed with the explicit guarantees that arise from what your company said or given to the other party and with the unspoken guarantees provided by national law. In order to reduce the resulting uncertainty, the exclusion of the guarantee is common in contracts. A commercial contract is a legally binding agreement between two or more persons or entities. These are terms that have been reported in standardized relationships. 3. Choice of law or applicable law This convention is governed by the internal laws of State XXX, United States, and is interpreted in accordance with the domestic laws of State XXX, USA, without reference to the rules of conflict of laws. There is no particular format that must be followed by a contract. In general, it will contain certain concepts, either explicit or implicit, that will form the basis of the agreement.