When companies don’t have their own law department or a good contract management system in place, trying to understand the language of the legal world can cause frustration and delays.
Quite often the lengthier the contract the more legalese there is to try and interpret and almost every one you ask will in fact interpret it differently. Most contracts begin with a section called definitions which is where most companies and associates get lost to begin with. This section is just exactly what it says, all terms used within the following clauses of the contract refer back to this section for their specific explanations of a terms meaning within that clause. You are probably finding this confusing already.
The simple way to begin is by focusing on the definitions as if it were a separate document and then set it aside and read through the clauses. Most of the time this will clear up some of the confusion.
Most contracts have a pretty good flow to them and will include a format that covers most if not all of the following.
1. Definitions
2. Merger and Integration
3. Choice of Law
4. Statute of Limitations
5. Indemnification Language
6. Time of Performance
7. Arbitration
8. Severability
9. Fee’s
10. General Provisions
11. Non-Waiver
12. Liquidated Damages
If you need some help trying to interpret the flow of these documents, please contact a SafeSourcing customer services account manager to learn more about how SafeContract™ services can help you.
We look forward to and appreciate your comments
