Four Benefits to Including a Notices Provision in Your Contracts

Business owners typically understand that contracts are an essential tool that are required for their success. Too often, however, they fail to read through the entire contract, especially what they consider to be the “boilerplate” sections. Perhaps the most overlooked, or even omitted, portion of a contract is the notices section. Read on to learn why this section can have a big impact on any contract and why it should be taken very seriously.

1. Instructions for Amending the Contract

A contract should cover as many situations as possible to minimize potential disputes. There are times, however, when a contract needs to be amended due to some situation that could not have been planned for originally. The notices provision should include instructions on how to amend the contract if necessary.

2. Details on Terminating the Contract

While it is best to have a contract remain in place until all obligations are fulfilled, that is not always possible. The notices section should define how the contract might be terminated so that all parties know their options should they wish to exit the agreement.

3. Renewal Options for the Contract

It is often more cost-effective to renew an existing contract than to write a new one. If the notices section includes a renewal provision, parties can use the options provided to keep the original contract in place for a while longer, making the process of doing business with each other much simpler and less expensive.

4. How to Handle Offers

Many contracts allow one party to offer proposals to another regarding the goods or services that they provide. When this is the case, the notices provision can identify how these offers should be submitted and what obligations the receiving party has to either accept or reject them.

Great Contracts from Start to Finish

The notices provision is just one important section of a business contract that should not be neglected. If you need to draft a contract or are being asked to sign one prepared by someone else, contact IGC to ensure that your interests are protected today and long into the future.

Integrated General Counsel