Don’t let them chase you
As Halloween approaches, it’s not just ghosts and goblins that haunt us, contractual agreements can also have their fair share of terrifying twists.
Just like a good horror story, a poorly crafted contract can lead to unforeseen consequences, misunderstandings, and even legal battles that can chill you to the bone.
In this article, we’ll delve into some of the most spine-tingling clauses that can lurk in the shadows of your agreements, waiting to ensnare the unsuspecting.
From ambiguous scopes that lead to disputes, to terrifying liabilities that could undermine your business, we’ll shed light on these contractual fears and how to avoid them.
Scope and Objectives:
Defining the scope and objectives of an agreement can often be ambiguous, leading to misunderstandings regarding what is included or excluded. The parties may interpret deliveries, timelines, and outcomes differently, resulting in vague language that can lead to disputes over unmet obligation
This ambiguity could potentially lead to legal action.
To prevent such alarming outcomes, it is essential to clearly delineate all deliveries, timelines, and specific objectives using precise language. Regularly reviewing and updating the scope, if necessary, can help avoid confusion.
Plus: In Trakti, you can use the collaborative environment to communicate with the parties by exchanging messages, updates, and notifications. Additionally, you can incorporate Trakti variables, orders, and tables into your contracts, detailing timelines and specific objectives.
Limitation of Liability:
Negotiating liability limits can be contentious, as parties seek to protect their interests while maintaining mutual fairness. Striking a balance between limiting exposure and ensuring adequate accountability can feel like walking a tightrope.
Excessively limiting liability can expose parties to significant risks, while overly broad limits may deter parties from entering into agreements.
To navigate these treacherous waters, propose reasonable limits based on the nature of the agreement, including limits on direct damages while excluding consequential damages.
Plus: During negotiations, Trakti allows you to make offers and counter-offers, and propose amendments. Additionally, you can request reviews from external parties to gain an opinion on the contract; proposals can be accepted, evaluated, or rejected through the platform, allowing for traceable discussions at every stage and arriving at a signature only when both parties agree.
Intellectual Property (IP):
Issues related to ownership and rights to use intellectual property can be contentious, especially in collaborative projects where multiple parties contribute.
Defining what constitutes confidential information can lead to disputes, and misunderstandings regarding IP rights can result in costly litigation, hindering innovation or commercialisation efforts.
To prevent such terrifying scenarios, clearly define ownership, usage rights, and licensing agreements, and consider including provisions for joint developments and post-contractual uses.
Plus: Keep all attachments to the main contract in Trakti, and track every message and communication exchanged between the parties.
