How important is the promise clause in a contractual obligation?
For a layman, contract is a promise that is bound by law, but are we aware how important is that promise in a contract? Is it okay for us to break that promise? In a contract, parties must keep their promises because of their binding nature. If these promises are constantly broken, then the contracts will lack the basic elements of adherence. Businesses will face set backs in large amounts leading to huge losses. Within large organizations, several agents work in parallel, which will delay productions by months, if promises wouldn’t be kept or not adhered to. Therefore, the contracts specifically provide remedies for non-performance of promises. They are legally enforceable to protect the rights of the parties to a contract. The essential ingredients of the contracts are free consent, parties should be competent, it should have a lawful object and consideration, and the agreement must be valid and not void. These are vital so that no party can later refrain from doing the act that is required of them to do during the timeframe of the contract. Courts have enforced the promises with the intention that a broken promise should come with a price. These promises can be written, oral and can be express or implied. If an establishment lacks a solid contract management organization within itself, then it will be difficult to track the contracts and adhere to the timelines of the performances.
It is absolutely possible that a wrong clause can get added inadvertently when the contract is being drafted, making the contract very critical. This will lead to cumbersome processes and make the tracking the progress of the contracts increasingly difficult. You may have pre-drafted contracts, but every contract is different, and the promises made therein are also different. It is therefore pertinent to partner with a contract management organization or partner with an alternative legal solutions provider like TLB, who has a repository of several types of contracts. The TLB team can assist you with drafting the strongest contracts for your clients. The promises mentioned in the contracts are such that the team makes sure that your clients and you are at the most advantageous position. Many a times the promises need to be renewed before the main contract is renewed and keeping a track of these sometimes in about thousands of contracts is a huge challenge. The statutory limitations are also strict, so once you miss this limitation, you become legally bound by the non-performance remedies available to the other party or parties. You may have to incur huge loses in such cases. TLB has contract lawyers in their teams who are specialists in “remedies of specific performance of enforcement of obligations” of a contract. These lawyers can guide you step by step and through and through your live contract agreements. The team works as a partner and works either as a back-office support or as an extended part of your law firms. There are specific companies who work just as a contract management organization but such organizations cannot provide holistic assistance to law firms or corporate law departments. The TLB team can also track those promises of obligations in the contract which are in the real sense may not be so much binding as the other priority ones. These can be extremely confusing in contracts and separating them is exceptionally a tedious task. It is important to know that these clauses ensure your clients benefit the most from the contracts and focus on the most urgent ones from the clauses list. The contract team at TLB has a research wing, which is focussed on distinguishing the promises that are the most critical from the others. They are champions at winning your contracts for you and provide the best contract management solutions. You can be relaxed from the risks as someone would always be notifying you or alerting you about the times lines of the promises mentioned in the contracts. A single amiss can shatter your clients’ trust as the risks are massive in contractual obligations. The most complex of contracts can sometimes take months for you to just read through them and analyzing them. The TLB team prepares a report for all types of contracts for your clients and stores them at a secured common place, which you can easily track too. You can validate the work at any time. They can also work on the most sophisticated tools available in the market. The objective of the team is to reduce your time and ensure that the TLB’s services adds value to all your in-house teams and not just make it cost effective. Every possible future dispute is assessed and put in the tracker and would be in tune with all your work. Please do contact us to know more about the team and their holistic approach to the contract agreements.
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