Contracts are a key part of running any business. Whether you’re entering a new deal or reviewing terms you’ve been given, having a clear and well-drafted contract not only helps you understand where you stand but also protects you if things don’t go to plan.
Key issues that require careful consideration include:
- Limitation of liability – Contracts should include provisions that appropriately limit your business’ risk exposure by setting agreed liability thresholds.
- Warranties – Warranties are representations made about goods or services. These must be accurate and carefully drafted, as disputes frequently arise from unclear or incorrect warranties.
- Indemnities – An indemnity is an obligation for one party to compensate the other for a specific loss or damage. These should be carefully reviewed to ensure they are appropriate to the transaction.
- Restrictions – Contracts often impose restrictions, such as prohibitions on the parties assigning the contract to third parties. These should align with your commercial objectives and expectations.
- Resolution of disputes – Contracts provide the parties with agreed dispute resolution processes, which if correctly drafted, will minimise the costs associated with resolving a dispute in the first instance.
At Johnstone and Reimer, we also understand that effective contract drafting goes beyond legal concepts – it requires a clear understanding of your business and the transaction at hand. A well-drafted contract should accurately reflect the parties’ intentions while protecting your interests.
Our Commercial Law team can assist you by reviewing and negotiating a contract you have received or drafting and negotiating a new contract to suit your specific transaction.
The types of contracts we can assist you with include but are not limited to:
- Supply or Service Contracts
- Transport Contracts
- IT agreements such as Subscription (SaaS) Agreements
- Customer Contracts
If you’d like help with a contract, feel free to get in touch with our team on (03) 8658 0040.
