Contract Review

Before entering into a new contract, how many companies actively consider the risks involved in a new venture? Unless the risks are fully identified and quantified, how can decisions be made to proceed with the venture and how can decisions be made about transferring risk through contract terms?

Kingsbridge services include reviews of contractual arrangements to:

• Establish level and nature of risk being assumed thereunder
• Amend terms where appropriate (if level and nature of risk being assumed is unacceptable)
• Establish insurance provisions that are workable
• Verify suppliers' and sub-contractors' insurances

All businesses use contracts in business relationships, whether they are evidenced in writing or not. Many of these will have been negotiated by employees whose main responsibility is not to draft contracts. For example, sales contracts are frequently drafted by salesmen whose primary focus is naturally customer satisfaction and not risk mitigation. This may result in terms that are detrimental to the company and, at worst, could cost a company a great deal of money in the event of a dispute.

It is possible for a contract term to become a deal breaker during negotiations. Sometimes there is an insurance (or other form of risk financing) solution to these problems.

Years of practical experience has demonstrated that this issue continues to be overlooked and ultimately is part of an integrated risk and insurance programme.

Whilst not lawyers, Kingsbridge can provide practical advice and play its part in helping clients to reduce risk.