Critically Examine the Details of Your Contract through Contract Vetting
A legal contract or agreement is more just a piece of document that two parties sign, but it protects one’s business entity with the rights and remedies. An agreement creates responsibilities, conditions, monetary issues, time limits, and more so that every part of the agreement is properly sealed, which, if it fails, can lead to unforeseen losses.
legal vetting is necessary in Dubai and UAE
legal agreements or contracts
contract vetting of documents
Without due diligence of contract vetting, we might sign contracts with unattractive conditions that are not beneficial to us or our interests.
What is Contract Vetting
Contract Vetting or Legal Vetting means the act of carefully and critically examining the documents to be executed in terms of the law. Contract vetting results in thorough due diligence of the agreement, which ensures the following:
Legal vetting of various company documents by advocates. Lawyer’s Advice on sensitive matters. Legal compliances.
- All safeguards are taken
- Definition of specific roles
- Security of money
- Legal remedy
- Issues well outlines
- Clarity of aspects and monetary terms, etc.
obligation and responsibilities of all concerned parties
Contracts are mainly designed, drafted, and executed by companies from the viewpoint marking out the obligation and responsibilities of all concerned parties to mitigate risks. Small-business owners and senior-level managers often draft contracts throughout their tenure.
Since there is a need for an agreement to be read, understood, and analyzed with regards to wordings and expression used in the body of an agreement. It is necessary that under no condition should artificial words be included or that an additional meaning should be inferred other than what is understood literally.
Professional contract vetting and checking
Therefore, going for a legal vetting is necessary if you want to save yourself from unforeseen circumstances that could have been averted if the proper legal action of contract vetting of documents was executed in time.
It is suicidal to use the copy-paste or stereotype legal agreements/contract, and hence it is vital to approach a legal expert who can make a proper legal document and for professional contract vetting.
Main Aspects of Contract Vetting
- Contract vetting requires that the person carry out in-depth scrutiny of intent, clauses, recitals, and risk to protect the need of a client, and facilitate smooth transaction flow.
- The main contract law is drawn from the English contract law, which places heavy emphasis on the desire of contracting parties to bind themselves in an agreement to exchange business or service.
- In Jones V Padavatton, the courts sought to clearly define the distinction between family arrangements and business agreements. The family agreement isn’t always binding and contractual agreements should engage within them the commercial intent clearly. Hence, while contracts are being vetted, the intent to bind each other legally in the business should be clear.
- Following from above, it is vital to check that the parties to the agreement are known, their authority to represent their different companies and the ability to contract and the place of business checked. In situations where there are up to 3 or more parties to a contact, the intensity of scrutiny may need to be more rigorous to be able to establish the purpose of each person.
- When parties bind themselves in business, the purpose of the contract must be clear.
- If the purpose is regarding the sales of good, it is sensible that “x” manufactures and sells AB goods and “z” is the manufacturer of XY goods in which AB goods is an input.
- In a simple Sale of Good, where products are standardized, it may be essential that specific definition is not necessarily given, but by way of being cautious, it is sensible to state and define “Goods,” “Parties,”“Purchase Order,”“Date of Delivery,” “date and mode of payment,” ‘Place of delivery,” “cancellation,” etc. This ensures the terms mean the same thing in the same sense to the contracting parties and suits their requirements accurately.
- However, where customized product requirements are complex, such as boilers, specialized electronics, engineering goods, and so on, it is advisable to ensure that all specifications and definitions be sharply delineated.
- Thereafter, the agreement should state all the terms and conditions on which business should be done.
How is Contract drafting different from Contract Vetting?
Contract drafting and contract vetting are two different stages of the contracting process. Contract drafting is a process that involves the drafting person who drafts a contract from the starting point to the endpoint.
In the contract vetting process, the drafting person is the reviewer and will work on the existing contract template (the one that has already been drafted) to do the required additions and deletions in the existing contract template.
focus on unique pointers in the existing contract template
Professionals who work in certain companies will be able to vet the contracts for two reasons:
- It is either such companies will have their own contract templates; and
- Counterparty sends in their contract template to be reviewed.
In the vetting process, the learning curve is limited for professionals as they need to focus on unique pointers in the existing contract template and don’t get the prospect of doing the work first hand.
comprehensive research on different clauses
However, on the other hand, in the contract drafting process, the drafting person often drafts the entire contract on his/her own with special focus on each and every minute point from the starting point to the endpoint.
Contract drafting allows the person who is doing the drafting to get the opportunity to learn the art of drafting provision by provision, making it possible for comprehensive research on different clauses to learn each clause to the core.
It is recommended that the young legal minds focus on learning contract drafting (to learn first-hand work) to the core to become proficient in contract drafting or contract vetting.
Enterprise Legal / Drafting Contracts/ Vetting
Contract Drafting and Contract Vetting Service Providers in Dubai. Legal vetting of various documents. Giving Legal Opinion. Advice on sensitive matters. Legal compliances.