Don’t let the Devil be the Detail
Businesses have responded very quickly to a fast changing economic and social environment. As a result of this many are having a good look at what they do and how they do it. Which in turn has involved a review of a wide range of practices and relationships. Many of these are supported by contracts and service agreements – which are essential to most organisations.
The speed at which many organisations have had to adapt has placed considerable strain on the senior teams of businesses who have had to make decisions much quicker than they normally would. Now they are looking at the shape of their business going forward. Contractual agreements provide the skeleton that hold businesses together.
In becoming more agile business owners should not skimp on the detail associated with key business agreements. Whether the agreement be associated with a supplier serving the business or the business providing products or services to others, the detail needs to be robust and well crafted.
Such agreements need to represent the interests of the business, be able to accommodate change, limit risk and of course comply with the law. Any poorly drafted agreements can lead to conflict, possible brand damage or a costly legal dispute. It is also worth noting that during a ‘due diligence’ review in a merger or acquisition well drafted agreements will significantly influence the price associated with a business sale or purchase.
A well-designed contract provides a basis for a successful mutually beneficial commercial relationship. Drafting them is however, a skilled process and the content should always been reviewed by someone who can determine if it is robust, enforceable or even legally binding.
If you need help in drafting or reviewing contracts or commercial agreements please contact Nesta Gresham at Pictons.
T: 0800 302 9448