5 Critical Clauses to Consider Before Signing a Contract

Date: 28/8/2022 | Corporate & Commercial, Arbitration
By: Contract and Corporate Department

A contract is a legally binding promise which includes the terms and conditions that regulate the relationship between the involved parties. Therefore, it is substantial to understand the terms and conditions before signing a contract. Here is a few critical contract risk factors to consider before signing a contract:

  • Parties:
    In this clause, make sure to write the full and correct address and contact details of the contractual parties, to avoid any notification issues when a dispute is raised.
  • Term:
    To prevent your self from any issues might arise from misunderstanding the commencement date of an obligation or the validity of the contract, the contract must specify the period of time over which the contract will be valid.
  • Confidentiality:
    If the contract has a confidential information or documents, consider adding a clear confidentiality clause, to protect the business secrets and sensitive information.
  • Termination:
    To avoid any disputes of unfair termination, make sure to review the termination clause and to have fair conditions with a reasonable period of time to practice the termination rights.
  • Disputes Resolution:
    The most important clause in a contract, make sure to choose a convenient mechanism to resolve conflicts, understand the mechanism, the applied law and the sequence-if any.
    Why?
    To provide reassurance regarding the amount of time and money spent in resolving disputes as some clauses might exclude the Omani jurisdiction.

Discussing a contract with professionals can help avoid future expensive disputes over a legally binding document that can become problematic. For further advice and assistance you can contact us.

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