Esquiher’s Essentials

Welcome to our bi weekly blog posts discussing essential topics , terms, or legal information
you can use. This first post is dedicated to giving you the essential terms you should look
for in most contracts. This information does not constitute legal advice or representation.

Many of you are familiar with contracts , you have entered into contracts in everyday life.
For example, when you bought a new pair of shoes at your favorite shoe store; you entered
into a contract for those shoes. A contract is legally binding agreement. Therefore, when
you buy shoes you(the purchaser) agree to pay (amount) the store( seller) for the shoes(
subject of contract). Below I layout the key terms you should look for in majority of
contracts.

Key terms to look for in a Contract

Key contract terms are important clauses in a contract; breaking them can lead to a breach of the
agreement and legal action.

1. Confidential terms
2. Payment terms / parties’ compensation
3. Disclaimer
4. Warranties
5. Dispute resolution
6. Breach assignment
7. Length of contract
   Key contract terms in a contract that define its obligations; breaking them constitutes a breach of
   the contract and may result in legal action.

It is well known that a legally binding contract takes into account a number of important
elements. These are some instances of such elements:
* Offer
*Acceptance
*Legal capacity to contract
*Mutuality of agreement

Although each contract is different, they all share a few common terms. However, not all
contract terms are included in every contract because contracts typically contain provisions that
are pertinent to their particular subject matters.

It is recommended to review contract’s terms several times and ask as many questions as you
can. It is also a good idea to follow your intuition if you notice that something about the
contractual conditions doesn’t quite add up. You will get better at identifying when a contract is a
perfect fit and when something is off as you read more contracts. Additionally, reviewing
contracts regularly will help you become more familiar with the legal framework within which
you operate.

Confidential terms

Contracts typically include clauses requiring the parties to protect one other’s confidential
information. Secret provisions constitute some of the most important contract clauses when
agreements call for the inescapable disclosure of confidential information from one party to
another.

Payment terms

Some contracts have straightforward payment terms. They sound like this: “X requester hereby
agrees to pay Y service provider such and such sum of money for performing XYZ.” However,
the conditions of payment change from being straightforward when it has clauses, such as “ABC
pays XYZ a certain sum of money for the services performed,” to being more intricate, such as “gross revenue, net revenue, adjusted net revenue, adjusted gross revenue, revenue share,” and so
on. Chargebacks have the potential to make things even more complicated. So, before moving forward with transactions, it’s wise to have a lawyer and an accountant analyze the payment conditions of a contract.

Disclaimers

Reducing uncertainty and minimizing risks is one of the most important goals that contracting
parties try to accomplish. That is why a disclaimer that limits liability is included in almost every
contract.

Warranties

A warranty is same as guarantee. Therefore, by providing a warranty, you consent to expose
yourself to legal responsibilities that go beyond a violation of contract. Warranty terms are
consistent with indemnities and disclaimers. When reading a warranty provision, it’s important to
keep in mind that you can’t provide a warranty for something you can’t guarantee.
Don’t sign a contract that says, “I warrant that I’ll run a mile every morning,” for instance, if you
can’t promise that you’ll do so.

Dispute resolution

Parties generally don’t take dispute resolution clauses seriously at the outset of contract
discussions. Instead, they frequently pay little attention to the quantity of payment, explicitly defining the extent of the good or service provided, negotiating indemnity and warranty
conditions, or taking into account payment methods—all of which are crucial.
It is strongly encouraged to ensure that your contract contains appropriate clauses that address
conflict resolution from the onset. So, if a disagreement arises, there will be clear guidelines for
all sides to adhere to in order to reach a settlement.

Breach Assignment

A breach of a binding contract is when one of the stipulated terms and conditions is broken.
Anything from a late payment to a more significant infraction, like failing to deliver a promised
asset, could constitute a breach.

Length of contract

The phrase “length of contract” refers to the time frame during which a contract is in force. This
can also be defined as the time frame between the contract’s start date and end date, which are
both normally specified in contracts and will be mutually agreed upon by the parties

We hope you found this information useful. As always if you need a more in-depth explanation
or have a specific contract you want reviewed, please use or scheduling link to book an
appointment and our client intake form to answer some preliminary questions. We look forward
to working with you!