Business Contracts: Common Clauses Worth Understanding

Well-drafted contracts set out what the parties have agreed to do and how foreseeable problems should be handled. The appropriate wording depends on the transaction and the parties’ commercial objectives.

Scope and payment

Describe the goods, services, deliverables, fees, payment dates and acceptance criteria clearly.

Risk allocation

Consider confidentiality, intellectual property, liability, indemnities and other provisions relevant to the transaction. These clauses should be reviewed together rather than in isolation.

Termination and disputes

Clarify when the agreement can end, what happens afterward and how disputes should be handled. Professional review can help ensure the agreement is appropriate for the intended purpose.

This article provides general information and is not a substitute for advice on a specific matter.