In business contracts are agreement between two or more parties to conduct business in a specific manner that identifies risks and assign responsibilities and commitment of all parties involved.
This document is an outcome of intense negotiation. While negotiation plays an important role in the culmination of a contract, however, it is the execution and management of the contract that ensures a successful business relationship.
Failure to manage a contract effectively, leads to cost inefficiencies and overruns, scope creep, project delay, etc. Improper management of the contract further leads to protracted contract development and negotiation cycles, improper contract approvals, limited contract visibility and control, and, an inability to ensure compliance with established contract terms.
Contracts may appear as a relatively simple concept of inking a deal that has been agreed upon by willing parties in business, but there are formalities to observe and methodologies to follow.
Knowing well what to look for and incorporate the concerns into a contract avoids conflicts and misunderstandings in the future. While this course is not intended to be a legal guideline, it however, provides the general legal perspective in business usage.