Are you overlooking areas of risk that may be lurking in the contracts you have entered into?
BELOW ARE 6 COMMONLY MISSED ISSUES.
1. FAILURE TO OBTAIN A CONTRACT IN WRITING
Lack of a written contract can lead to misunderstandings about what was agreed to – which can ultimately lead to litigation. DON'T LET THIS HAPPEN TO YOU.
2. FAILURE TO MAKE THE WRITTEN CONTRACT THE COMPLETE
Without a clause that "wraps up" the complete discussions of the parties, either party can claim that extraneous conversations or emails need to be considered, leading to conflict. WE CAN HELP YOU AVOID THAT.
3. FAILURE TO REQUIRE AMENDMENTS TO BE IN WRITING
Even with a "wrap up" clause as described in #2, problems can still arise. With-out a requirement that amendments be in writing, subsequent conversations can lead to claims that additional or different promises were made.
4. AGREEMENT TO INDEMNITIES
Indemnities are agreements to reimburse another party for costs, losses or damages. They can lead to outsized recoveries by parties who benefit from them, and to outsized costs for those who grant them. It's essential they be tailored to the situation involved and reasonably limited.
5. FAILURE TO PROTECT CONFIDENTIAL INFORMATION
When valuable confidential information is being shared, special protections are required. The recipient must agree not to disclose the information to others and to use it solely as needed to perform its duties.
6. FAILURE TO FOLLOW THE TERMS OF THE CONTRACT
If the parties don't follow the terms of the agreement, they introduce all sorts of ambiguities into the relationship. Following and monitoring compliance by both parties must be in place to avoid problems – and identify needs for documented changes.
Originally published 7.28.21
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.