Commercial and Business Contracts a Practical Guide

Introduction

This Commercial and Business Contracts training course will provide participants a comprehensive understanding of procedures and practice related to the risks inherent in the formation and management of contracts. Through analysis of real-life examples, this Contract Management training program demonstrates how to manage contract risk effectively and to ensure contract negotiations and performance occurs quickly and efficiently. Contracts are valuable and useful tools for companies to maximize value for businesses and minimize the risk of loss or things going wrong. Businesses cannot continue to focus on pricing and key commercial terms alone.

Contracts are vitally important for any business. Understanding and managing contract risk is critical for companies and senior employees. The business and competitive advantages of managing contracts effectively produce significant benefits and a failure to fully understand risk related items in a contract can result in lost opportunities and costly disputes.

The highlights of this training course are:

• Creation of contracts including legal effectiveness and structure
• Key contract clauses focusing on payment and non-payment remedies
• Securing the performance of a party’s obligations in the contract
• Liability for breach of contract
• Dispute resolution and important considerations

Objectives

After completion of the course participants will be enabled to:

• Analysis of the risks inherent in the formation and management of contracts
• Explain key contract provisions and provide instruction on how to manage contract risk effectively
• Interpret essential contract clauses and understand the specific terms and conditions
• Develop your ability to negotiate an effective contract to protect your corporation’s interests
• Discuss where things can go wrong, and learn how to avoid problems, or mitigate their effects through well-drafted contracts and good management
• Recognize how to avoid disputes but be prepared to deal with them if they arise

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This Contract Management training course will benefit all professionals negotiating and dealing with contracts and managing relationships within the organization. This training course would also benefit:

• Contract and Purchasing Personnel
• Project Management Professionals
• Other employees in corporate or governmental organizations who have a responsibility for drafting, negotiating, or approving contracts.
• Professionals such as legal and financial staff
• Any personnel involved or interacting with contracts

Course Outline

Day 1: How Contracts are created

• Quantifying Risks
  • The Benefits of Understanding Contracts
  • The Pitfalls of Getting It Wrong
• Controlling the Contract Process
• Understanding the Deal
• Controlling the Negotiation
• Offer and Acceptance
• Battle of the Forms
• Consideration and Intention
• Does a Contract have to be written?
• Due Diligence, Permits, and Financial Stability
• When are you committed?
• Contract Formation
• Pre-contractual Issues and Documents

Day 2: Controlling the Contracting Process

• Auctions, Bids, and Tenders
  • Invitations to Tender and Treat
  • Heads of Terms and Letters of Intent
  • Bonds and Guarantees
  • Standby Letters of Credit
• Form of Agreement
• Contractual Structures
• Incorporating Standard Terms of Business
• Letters of Comfort
• Informal Contracts
• Subcontracts and Warranties

Day 3: Key Contract Clauses

• Pre-contracts and Post Contract “qualification phrases”
  • Subject to Contract
  • Without Prejudice
  • Subject to Client Comment
• Securing Payment
• Payment Obligations
• Non Payment Remedies
• Letters of Credit
• Guarantees
• Time and Place of Delivery
• Late and Failed Delivery
• Damage in Transit
• Ownership and Acceptance
• Transfer of Title and Risk
• Retention of Title
• Time of the Essence
• Delivery, Ownership, and Risk
• Liquidated Damages

Day 4: When Things Go Wrong

• Contract Liability
  • Managing Liability
  • Limits of Liability
  • Damages
  • Insurance and Indemnities
• Product Liability
• How a Claim is Brought in Contract
• How a Claim is Brought in Negligence
• Practical Risks
• Force Majeure
• The frustration of a Contract
• Notices and Service
• Authority to Sign a Contract
• Power of Attorney
• Termination / Discharge
• Transfer
• Variation
• Mistake
• Entire Agreement & Waiver
• Interpretation and Signing
• When do Contracts End?

Day 5: Disputes and Compliance

• Choice of Law
• Choice of Dispute Resolution
  • Negotiated Settlement
  • Litigation
  • Arbitration
  • Mediation, Adjudication, and Experts
• Settlement Issues
• Enforcement of Judgements and Awards
• Jurisdiction
• Bribery
• Corruption
• Money Laundering
• Competition Law
• The Importance of Business Integrity