If your business is based around contractual rights then managing contracts can be a large part of your business. An example would be a franchise business which has a number of contracts with franchisees. Often these contracts are not monitored and changes to the standard form contracts for particular individual contracts are not recorded anywhere centrally – but left buried in individual agreements. Often, a basic summary of the main commercial terms of each contract is not available to allow the business to understand its obligations.
The absence of such information can greatly affect the direction of a business. Often a business may assume it has certain rights when on closer inspection it does not. Or it may be the other way around – that your business is not deriving the full benefit from the contracts it has signed.
Without such information, a business will not understand its risk profile under such contracts. In particular, what level of liability is a business taking on under its contracts and if it were to be sued under such contracts, the limitations that apply (or don’t apply) to reduce the business’s exposure Identification of such issues can trigger changes in your business’s contracting to reduce such exposure.
Key functions, such as supply of essential materials and services to allow your business to function should be the subject of binding contracts. It is not uncommon to find no such contracts in place.
To assess your business’s contracting needs we start by analysing your business’s existing contracts and commercial arrangements and then develop a solution to ensure that the contracts you have and enter into are performing their functions.
Call us today to see what we can do for your CONTRACT MANAGEMENT
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