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Agony Uncle

November 30, 2024
In supply contracts can we include penalties for delays?

Question: “We’ve just signed a big supply contract, but now the vendor is delaying deliveries. The agreement doesn’t clearly define penalties for delays. Is there a way to fix this or protect ourselves moving forward?” Answer: Ah, the classic “missing penalty clause” predicament—a favorite among vendors who test your patience and inventory levels simultaneously. First,...

October 19, 2024
Termination Clauses v1

Question:  “We’ve heard about companies getting burned by poorly drafted termination clauses. For instance, in Project X, the builder terminated the contract, leading to significant delays and legal battles. Similarly, some small firms have been pressured into long-term contracts with hefty termination fees, causing financial strain. We’re worried about facing similar issues. How can we...

October 5, 2024
Non-Compete Clause: How to Protect Yourself and be Fair to the Other

Question:  “Our clients often ask for non-compete clauses in agreements. How do we ensure they’re enforceable under UAE law without being overly restrictive for us? I don’t want to sign something that feels like a lifetime sentence!”  Answer:  Ah, the dreaded non-compete clause—a classic tug-of-war between “You can’t steal my clients!” and “But I still...

September 28, 2024
Partnership Agreements: Avoid Loopholes, Ensure No One Fails

Question:  “We’re about to sign a partnership agreement with another company. How do we ensure that roles, responsibilities, and profit-sharing are fair and clearly defined to avoid disputes later?”  Answer:  Ah, partnerships are the cornerstone of great business ventures. However, when poorly managed, they can cause sleepless nights. A partnership agreement is like the blueprint...

September 21, 2024
The Hazards of Using Standard Templates for Contracts

Question:  “We’ve been using standard templates for our contracts—just tweaking them a little for each deal. But I keep hearing horror stories about businesses getting blindsided by hidden liabilities buried in these ‘boilerplate’ clauses. Are we taking a huge risk by relying on these templates? Should we be doing more to protect ourselves?”  Answer:  You...

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