You may think that reviewing and refining your contracts is unnecessary – if they are working why change anything?
But it is advisable to regularly check your contracts for any changes you might need to make, both from a practical and financial perspective. Here, Matthew Johnson, an Associate Solicitor in our Company Commercial team, explains the importance of regularly reviewing commercial contracts:
Expect the unexpected
One of the first reasons for this is because no one can predict what may happen next.
The Covid-19 pandemic and the long-term aftermath of it is still seeing an impact today and this was a completely unforeseen hit to businesses across the world.
And as the UK enters a recession it is more important than ever for you to be proactive and be looking into your contracts to see how your business is protected or how your business relationships might need to change.
Your business priorities change
Your priorities as a start-up business will be very different compared to when you are two or more years established. This means it is vital that you review your contracts and reflect on how they should be adapted now that your projections will no longer be just that.
Your contracts could be outdated, wrong or just no longer aligned with your new priorities as a business.
Recognise if something isn’t working
If something within a contract is not working out for your business, don’t be afraid to let the other party know and ask if they are open to reviewing or changing something.
There is no point in keeping quiet in the hopes that your relationship with the business will not be affected, as you will need to do something about it eventually.
Take away the risk of any disputes
By reviewing and reflecting on your contracts, you will be more likely to spot issues or anything that needs changing before it becomes a legal problem.
When major announcements that affect businesses are made, it is important to take the time to go over your contracts and ensure that they comply with all current guidelines and are legally sound.
For advice on your commercial contracts, please contact us.