March 24, 2023
Most of the issues that charities should consider before entering into a contract with a supplier are identical to those faced by other commercial organisations. We set out below our top 5 tips.
Do you understand your legal obligations?
Make sure that you read the contract thoroughly to ensure that you not only understand what your legal obligations are, but that you will be able to comply with them. You should also make sure that you diarise any key dates, so that you do not forget to do something and end up in breach of the contract.
What is the contract duration?
You should check the term of the contract and also pay particular attention to the renewal provisions. Some contracts (particularly in the IT and telecoms sectors) contain automatic renewal provisions, meaning that if you do not give notice in accordance with the contractual requirements, you may be stuck with a full contractual term on a renewal.
Also, consider whether you should include a “no fault” option to terminate, meaning that you can get out of the contract on written notice if necessary.
What are your potential liabilities?
If you are entering into a contract to receive goods or services, you would expect to have to pay for them. However, you may find that the contract imposes additional liabilities on you in relation to other areas such as data protection. You should check the contract carefully for potential liabilities and keep a particular eye out for any kind of indemnity that you are being required to give.
Has the supplier tried to limit their liability?
Many suppliers seek to limit their liability in respect of the goods and/or services that they have agreed to provide. This may be by reference to what they are paid (for example a multiple of the price paid) or alternatively by reference to the limit of their insurance.
If the supplier is seeking to limit their liability make sure that the limit is appropriate for you, both from a commercial and also legal risk perspective.
If in doubt seek specialist advice
If you are in any doubt in relation to the meaning of any of the terms of the contract, seek specialist legal advice.
If you would to discuss any of the above issues in detail or require any further information please contact Siobhan Williams, on 029 2082 9124 or firstname.lastname@example.org.
I have worked with Darwin Gray for a number of years and the level of service, professionalism and timely response is second to none. I would highly recommend Darwin Gray to any business.”
Darwin Gray have provided us with a first-class service for many years now. They really take the time to understand our business and develop relationships which results in advice and support that is contextualised and effective.”
We have worked with Darwin Gray for several years and have always found their services and advice to be first class.”
An extremely professional and sincere company who make time for your queries and understand the need to break down certain facts and information to ensure everything is understood perfectly. I would highly recommend the company to anyone looking for any type of legal advice”
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My “go to” in urgent and time sensitive cases for direction, support and advice. The team are quick to respond to calls or emails for advice and support on all matters. Always explain complex matters in a way a lay person can easily understand.”