Critical Clauses When Managing Contracts
Managing contracts requires numerous steps to ensure compliance throughout the contract lifecycle, including knowing which clauses are most critical. In addition to the scope of services, pricing and payment structure, and designated timeline (duration and renewal terms) indicated in a contract, the following critical clauses are also crucial to a successful outcome.
Confidentiality Clause
When managing contracts, confidentiality plays a key role. The confidentiality clause is a critical component to ensure vital information remains protected throughout and beyond the life of the contract. This restrictive clause can specifically cover intellectual property, client databases, and much more. The clause itself may be written in a broad manner to ensure the highest coverage and protection.
Dispute Resolution Clause
When a disagreement arises, the dispute resolution clause will be critical for swiftly reaching a viable remedy. This clause will lay out the process for settling disputes while the contract is in force and may include negotiation, mediation, arbitration, or a combination of these methods. A contract manager needs to know the process available when such a dispute arises.
Termination Clause
In some instances, everything doesn’t go as planned, no matter how detailed a contract is and how it is worded. For this reason, the termination clause of a contract can define how a party can terminate a contract. Included in the clause should be a layout of which type of circumstances the parties may terminate the remaining duration of a signed contract. It should also include the provisions for notification of termination and any penalties or fees associated with termination.
Force Majeure Clause
Unexpected and unforeseen situations can occur, which will put the performance of a contract in jeopardy. To acknowledge this, a force majeure clause is often included in contracts. This clause identifies what the involved parties can do in particular circumstances that are considered beyond their control, and that will interfere with the ability to perform contract obligations. Parties will need to know if the clause allows for delay of performance or relieves the party in default of its obligations to perform.
For help managing your contracts, contact Baer Reed for additional information. We provide contract management, contract analysis, and more to law firms and in-house legal teams across the globe. Find out how we can help by calling 888-433-1990 or reaching out to us online today.
- On September 21, 2022
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Mr. Reyes graduated with honors from the Ateneo de Manila University, where he received the Procter and Gamble Student Excellence Award. He obtained his Juris Doctor degree from the Ateneo de Manila School of Law. During law school, Mr. Reyes was part of the Philippine delegation to the Willem C. Vis International Commercial Arbitration Moot held in Vienna, Austria. He was also a member of the Ateneo Society of International Law and the St. Thomas More Debate Society. He completed his internship at the Public Attorney’s Office. He wrote a thesis entitled: “To Kill A White Elephant: An Analysis of the Fiduciary Exception to the Corporate Attorney-Client Privilege”. Mr. Reyes is admitted to practice law in the Philippines and the State of New York.
Ms. Lardizabal-Manzano is a graduate of San Sebastian College-Recoletos, where she earned her B.A. in Political Science. In 2003, she received her law degree from Lyceum of the Philippines and was admitted to practice law in 2004.
Matthew Hersh earned a B.A. in Political Science from Columbia University in 1990 and graduated cum laude from Georgetown University Law Center in 1999. He also holds a master’s degree in international relations from the Georgetown University School of Foreign Service.
Cap. Avi Levak (Res. IDF) graduated from from Israel’s prestigious Ben-Gurion University of the Negev with a Bachelor of Science in Computer Science and Mathematics. He is also a Leadership and Communication coach trained in TuT coaching by Alon gal in Israel. Avi specializes in high-level, in-depth analysis of business and client needs, within systems and software strategy and architecture.
Ms. Tyler graduated cum laude from Georgetown University and received her law degree, cum laude, from Georgetown University Law Center. During law school, she interned at the United Nations Economic Commission for Europe. She also worked on The Tax Lawyer journal and was a member of the award-winning Barristers’ Council Mock Trial Team. Ms. Tyler is admitted to practice law in the State of California and the District of Columbia.
Ms. Cruz-Anonuevo graduated cum laude and top nine in her batch from Miriam College with a degree of Bachelor of Arts in InternationalStudies. She obtained her Juris Doctor degree from Ateneo de Manila University School of Law in Rockwell. During law school, she interned in Rivera, Santos, Maranan & Associates. She was also part of Ateneo’s Labor Law Bar Operations. She wrote her thesis on, “Stealing Privacy: Limitations on Media’s Photographic Invasion.,” Ms. Cruz-Anonuevo is admitted to practice law in the Philippines.
Ms. Aquino-Batallones obtained a Bachelor of Arts degree in Development Studies (with Minors in Global Politics and Hispanic Studies) from the Ateneo de Manila University. In 2011, she received her Juris Doctor degree from Ateneo de Manila University School of Law. During law school, she interned at Romulo Mabanta Buenaventura Sayoc & de los Angeles then became an intern of Ateneo Legal Services Center’s Clinical Legal Education Program.
Mr. De Guzman graduated from San Beda College with a degree of Bachelor of Arts Major in Economics and received his law degree from San Beda College of Law. He is multilingual and is fluent in three languages: Chinese, Filipino, and English. He was admitted to the Philippine Bar in 2003.