Key questions to ask when getting into contract

– What is the risk i am getting into by getting into an agreement ?

– It is not possible to cover all the risks in the contract.

– It is considered practical to list all the risks in the table and see how best to address these in the contract.

– The key question becomes- How do i cover the listed risks ? How can the contract help me to cover the risks ?

– Break-up a contract into table containing 2 columns- Essence and Collaterals

– Essence covers the conditions based on which other party and claim the damages.

– Collateral covers the basis on which contract can be cancelled.

[This blog is captured from “Managing Commercial contracts” class notes (by Prof S. Shankar . Some information referred from Wikipedia/other listed sites.]

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One Response to Key questions to ask when getting into contract

  1. Chandra says:

    The last two sentences in this blog need to be corrected.

    Violation in the essence of the contract will lead to contract cancellation and violation related to a collateral can lead to claiming damages.

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