The Master Checklist for Contract Review and Management

When it comes to an organization’s corporate agreements legal teams must be sure to examine different contracts, and contract types, through distinct lenses as the information in each is likely pertinent to a variety of stakeholders, and requires unique frequency of examination based on its contents.

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5 Useful Contract Drafting Tips

Drafting contracts is part and parcel of two parties doing business. In order to grow and succeed, your organization must be skilled at writing and negotiating contracts. Below, you'll find five of the most useful tips for drafting contracts so that you'll have the best chance of making your next business partnership a fruitful and productive one.
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Contract Drafting: Liquidated Damages Clauses

All contracts are susceptible to breach and could eventually result in a costly, time-consuming contract dispute. In the event of a contract breach, the parties to the contract will most likely require the services of legal counsel to hammer out an acceptable resolution. Between the attorneys’ fees, court fees, and other associated legal costs, these kinds of disputes can end up costing a fortune. For this reason, the parties to a contract often wish to employ other methods of dispute resolution, such as an obligation to submit to arbitration or the inclusion of specific damages clauses. The liquidated damages clause is one of the most commonly used contract provisions, as it eliminates the need to figure out the nature and extent of the breach and the amount owed to make the aggrieved party whole. Here is a rundown on the liquidated damages clause:

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6 Key Clauses Found in Commercial Contracts

Contracts are used in virtually every industry, and many of the contract clauses that are used are applicable across sectors. In fact, there are certain contract clauses that are likely to make an appearance in just about any contract that is drafted. Commercial contracts, in particular, tend to contain a standard set of terms and conditions. Here are six key clauses found in commercial contracts:

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How to Write a Strong Statement of Work

A contract creates a legally enforceable agreement between two or more parties. For a contract to exist, there must be an offer from one party, acceptance of that offer from the other party, and valid consideration for the exchange, usually the payment of money in return for the provision of a good or service. Although contracts are drafted to clarify the parties’ duties and obligations under the written, legally binding agreement, they do not always spell out the manner in which those responsibilities will be undertaken.

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4 Tips for Mastering Subcontracts

For most companies engaged in contracting, entering into subcontracts is a routine necessity to ensure that a project is completed in an efficient and timely manner. Even larger companies with a healthy amount of resources at their disposal often find it advantageous to subcontract with another entity that specializes in the provision of a certain good or service. Of course, entering into an agreement with subcontractors can be risky, as their shortcomings or delays can cause a ripple effect across the entire project. Here are some tips for mastering subcontracts:

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Why and How to Include a “Change of Control” Clause in Business Contracts

Contracts are inherently risky, and a number of things can go wrong that may result in a costly contract dispute. Of course, there may be a change in circumstances that is not even addressed in a contract, and thus contesting any such unwanted change is not even a possibility, or perhaps there is only a remote chance of success in the courtroom. One rather significant change that is quite likely to occur and yet not often addressed in contracts is a change in the structure or ownership of one of the parties to the contract. Companies are bought, sold, and merged all of the time, but contracts are often silent as to the impact that such a change should or will have on the existing contract. This is obviously a mistake as a change in ownership may cause changes, both intentional or inadvertent, to the established arrangement. For example, a newly formed entity may change vendors or subcontract with new parties, situations in which the nature, quality, or timing of contractual obligations is altered.

But, this potential scenario is easily avoided by simply including a provision in a contract that explicitly details how the contract must be treated in the event of a change in control. For example, a company may wish to render the contract void if the other party to the deal undergoes a change in ownership. This may be an extreme choice, but there has to be predetermined options clearly written into the agreement. Here is how to include a change of control clause in business contracts:

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5 Tips for Drafting International Contracts

Contract negotiations and drafting can be pretty difficult in the domestic realm, so engaging in these activities on an international scale can add some additional complexities. Although there are some international business standards and norms, there are not really binding laws or governing bodies to enforce the rules. Parties may agree to submit to international arbitration, but ultimate recourse will really depend on the language of the contract. Thus, here are five tips for drafting international contracts.

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Four Tips for Writing Contract Amendments

Drafting a sound contract often requires seemingly endless negotiations and countless versions of the agreement before all parties are satisfied. But, despite spending days, weeks, or even months getting a contract into a mutually acceptable format, circumstances often arise necessitating some sort of amendment to the existing contract language. It is important to remember that an amendment changes something in the contract, as opposed to an addenda which would involve making additions to the contract.

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6 Contract Drafting Tips

Drafting contracts is not exactly the most exhilarating activity. Every word, comma, period, sentence, and paragraph of the document that eventually becomes a contract are critical to its existence and interpretation. As a result, getting a contract to an agreeable form necessitates painstaking precision. It is frequently said that negotiation is an art, and when it comes to contracting, both the negotiation and drafting of the agreement require a unique set of skills and knowledge. Here are 6 tips to drafting a strong contract:

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