|
People
make deals every day. They reach an understanding. If the agreement
is written, it is important that the contract accurately reflect
what the people agreed.
Read
it carefully. A good contract clearly explains what each party
expects to give and get, and what happens if one party fails to
perform. A well written contract does not guarantee you a good
deal. A badly written contract, or one that you do not understand,
can hurt you. The problem usually does not show up until something
goes wrong, and then it's too late.
Consider
the following when entering into a contract:
- -
Is the contract clear, balanced and fair, reflecting
a 'meeting of the minds'?
- -
Does the contract include a clear statement of intent,
scope of work and project description?
- Does the contract list a timetable for performance, deliverables,
payment schedule, deadlines and penalties for late delivery?
Are payment terms set for the initial contract and for
additional work beyond the scope of the contract?
- - Does the contract state if a license has been
granted, or who has ownership rights?
- - Is the contract clear, reasonable and reciprocal in
addressing confidentiality?
- - Does the contract include
a 'hold harmless' provision if performance is impossible
due to events beyond your control? Does it include 'not
responsible for final test'? Does it address infringement
indemnification?
- -
Does the contract use industry standard performance criteria?
- - Does the contract have a clause 'contingent upon receipt
of...'?
- - Does the contract list requirements for notice of termination
and opportunity to cure?
- Does the contract include provision
for mediation/arbitration and stated location.
|
