The Secret to Drafting Great Contracts

Before any business deal is concluded, a sound contract is required. The contract is the document which formalizes any official relationship, whether it be a marriage between persons, or entities.

The contract is not a way of policing over another individual or entity, however, it is a way by which mutual commitments can be established and trust can be built, thereby strengthening the relationship between parties.

Therefore, at the outset, it is important to include clear and concise terms in any contractual arrangement to ensure that the relationship between parties is an enduring and successful one.

Things to Look out for:

The first area a contract must address is the scope of work, and the subject of the contract. Is it a service contract or a contract for the sale of goods? Which specific service is to be performed, or how many goods are to be sold? How will the parties decide when the work is completed, and will there be any milestones? These areas must be clearly addressed by the parties to avoid future conflict.

The second area is the consideration, or price. What is to be exchanged between the parties for the services or goods provided. This can be the monetary price, commission or mutual services/goods traded.

The time-frame for execution of the contract, or when the services, goods, and payment becomes due, must also be addressed, as otherwise the contract may not have any force or weight.

There are then a whole host of other areas which are also important to consider, such as indemnification (if one party incurs liability because of the other, due to the acts/omissions of the other, then that party will compensate that particular party). In addition, dispute resolution, should also be considered, so that disagreements between the parties don’t have lead to a court battle! This includes provisions for mediation, mutual negotiation and deliberation etc.

The parties should include confidentiality and non-disclosure provisions as well, to ensure that the information exchanged remains safely guarded. In the digital age, intellectual property rights are also of the utmost importance, and any technical know how should also be protected in the contract.

These are just some of the areas which need to be addressed in every major contract between two or more parties.

Borderless Counsel Services

Our consultants have reviewed, drafted and negotiated over thousands of contracts of high value, involving some of the largest multinationals in the world, including Dow Chemical Company, DuPont, Colgate, Johnson and Johnson, Lubrizol and others.

We can therefore offer any and all services related to contracts and projects, for which you will need advice, review or drafting services, in accordance with Bahrain, GCC or even US/International laws and principles (i.e. standardized rules, formats, regulations e.g. ISO etc).

Our rates are to be determined based on the project scope. Simple contract review services are usually quite inexpensive. However, for project based work, rates are adjusted based on volume and requirements. Our engagements can also start from USD 150/BHD 50/AED 500, to offer cost effective and efficient professional services to make sure you have the protection you need!

Learn more at https://www.borderlesscounsel.com/