If you have a risk that needs to be addressed in a contract, use these three questions to help you get a handle on it. It could be a new risk profile due to market constraints, a new law, or a new corporate policy.
- Where in your standard contract are common risks addressed? (Look beyond the typical language such as Limitations of Liability and look at compliance language instead.) Is that language robust enough for this new risk?
- If you need to address this risk as an “uncommon” or “unique” risk, who at your organization ought to be a part of the decision-making process to address that uncommon risk?
- What proposed contract language would best address that risk? (Is it a legal Term, clearer acceptance criteria, reporting schedules, or using meaningful metrics?)
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