2020 has been a unique year that has presented us with many challenges, and for many, has changed the way we do business today and going forward. As we approach the end of the year, it is a good time to consider reviewing your business contracts with vendors, employees, and government entities to name a few.
Contracts are a key component in building a solid system for a business. When thorough, they delegate and manage obligations of the parties, forecast exposure to damages, mitigate risks, and provide remedies for relief in case of a breach. There are certain questions that you should ask yourself when evaluating your contracts.
- Is the original signatory still with the company? Are they in the same role or capacity?
- Have there been any changes in the law requiring addendums?
- During the pandemic, is it still feasible to carry out certain terms as signed?
- When does the contract expire? If expired, are we still carrying out the terms and services?
With a good system in place and taking the time to review the contract terms periodically, you should be able to maintain good control and solid relationships with your business contacts. The following points are key in doing so.
- Ensure there have been no breaches.
- Create options to terminate the contract.
- Review Force Majeure clauses, to also include COVID-19 or other similar events.
- Explore alternative language as you approach expiration/renewal date that would be beneficial based on lessons learned.
- Look for missing language that may have been overlooked initially.
- Eliminate ambiguous language.
- Know your legal rights, merits of engaging in litigation, or preventing it.
If you find yourself unsure on how to make amendments to your contracts, we are here to assist you in not only reviewing your contracts but identifying risks and opportunities to protect your business. Call us today to make an appointment, so you can start off 2021 with comfort knowing your best interests are being secured.