Top 5 tips for negotiating contracts

Whatever type of business you run, contracts are a necessary part of daily life. Whether you're looking to secure drilling rigs, outsource IT services or sell a range of bespoke hammocks, you should have a comprehensive agreement in place that clearly sets out everyone's rights and obligations. Here are our top 5 tips for what to look out for:

1. What warranties are provided? Warranties are usually considered essential contract terms, so a party could terminate if you breached one. If you are providing a warranty, make sure you only warrant things that are within your control.
2. What happens on termination? Not all endings are amicable so it's best to agree upfront what each party will be entitled to once the love is gone. Have your out-of-pocket or third party expenses been covered? Are you entitled to a fee if the contract is terminated before the end of the term? Or would you prefer that both parties walk away with no further liability to each other?