Recent Case Emphasizes the Importance of Outlining Specific Obligations in Written Agreements

Each contractual negotiation your company enters into carries with it a common subset of goals. The end result of negotiations should be a contract that both advances your company’s interests and protects its rights. The agreement should also clearly and unambiguously define the rights and obligations of each party during the agreement’s term. In other words, you will want to have a very clear understanding of the precise terms and conditions to which are you agreeing.

While it may seem obvious, a recent case decided by the U.S. Court of Appeals for the Federal Circuit again illustrates that if you intend a specific outcome to occur upon the happening of certain events, you and/or your company’s attorneys should take the time and care to negotiate and draft specific language that will achieve that outcome. Simply including language in an agreement that refers to a seemingly applicable statutory provision, rather than spelling out in detail your desired result, could detrimentally