5 Common Phrases To Limit Risks & Liabilities In Agreements

Introduction:

Tweaking the language in contracts is often considered a timeconsuming process and sometimes contracts are executed on dotted lines to avoid negotiations. However, avoiding this exercise could land one in unanticipated situations. Pacta sunt servanda is a traditional doctrine which means that agreements should be honored. For one to honor the agreements, the parties must understand their obligations in the same manner and in the same sense i.e. consensus id idem. Sometimes, certain agreements contain typical phrases which alter the obligations of the parties. This article aims to elaborate the interpretation associated with these common phrases.¹.

A. Reasonable efforts versus best efforts: