COMMERCIAL PRACTICE L4 - Drafting the commercial contract - SECTIONS IN DETAILS

Question 1

What should the drafter consider when drafting a clause? (1)

Answer 1

If there any practical or legal points the clause should cover.

Question 2

How should a contract be dated? (1)

Answer 2

Using the modern convention.

Question 3

What is the modern convention? (2)

Answer 3

A space should be left for the date to be inserted when the document is completed and the date should generally be the date on which the last party to sign the document signed it.

Question 4

What may an obligation in a contract be? (2)

Answer 4

Absolute or may require best or reasonable endeavours.

Question 5

What are covenants / undertakings? (1)

Answer 5

Bundles of obligations, promising to do something.

Question 6

When may an absolute obligation be too strong? (2)

Answer 6

The outcome may be partly within the control of a third party and it would put the client’s fate in the hands of that third party.

Question 7

What may you prefer to use when an absolute obligation is too strong? (2)

Answer 7

To give promise to use ‘best endeavours’ or ‘reasonable endeavours’.