Additional Agreement Clauses: How to Protect Your Interests

When entering into a business agreement, it`s important to ensure that all parties are on the same page and that their interests are protected. While many agreements contain boilerplate clauses that address common issues, it`s often necessary to include additional clauses that address specific concerns related to the particular transaction.

These additional clauses can ensure that all parties are aware of their obligations and that they have recourse if the other party fails to meet their obligations. Here are some examples of additional clauses that may be included in a business agreement:

1. Confidentiality Clause

If the agreement involves the exchange of confidential information, a confidentiality clause may be necessary. This clause would require the parties to keep the information confidential and to take reasonable steps to ensure that the information remains confidential.

2. Non-Competition Clause

In some agreements, it may be necessary to include a non-competition clause that prevents one party from competing with the other during the term of the agreement or for a specified period after the agreement ends. This clause can help protect the interests of the party that is sharing confidential information or trade secrets.

3. Termination Clause

A termination clause can be included in an agreement to allow either party to terminate the agreement under certain circumstances or at a specified time. This clause can provide clarity and certainty for both parties and can help prevent disputes about when the agreement ends.

4. Force Majeure Clause

A force majeure clause addresses events that are beyond the control of the parties, such as natural disasters, strikes, or government actions. This clause can specify how the parties will deal with the consequences of these events, such as whether the agreement will be terminated or suspended.

5. Governing Law Clause

A governing law clause specifies which jurisdiction`s laws will apply to the agreement. This can be important if the parties are located in different jurisdictions or if the agreement will be governed by laws that are different from those in the parties` home jurisdiction.

6. Indemnification Clause

An indemnification clause can be included to protect one party from losses or damages they may incur as a result of the other party`s actions or failure to act. This clause can provide a clear understanding of the risks involved in the transaction and can help minimize disputes about liability.

7. Assignment Clause

An assignment clause addresses whether one party can transfer their rights or obligations under the agreement to another party. This can be important if one party wants to sell their business or if they want to transfer their obligations to a third party.

In conclusion, including additional clauses in a business agreement can provide clarity and protection for all parties involved. It`s important to carefully consider the specific circumstances of the transaction and to include clauses that address any concerns or risks. And, as always, it`s critical to have a skilled attorney review any agreement before signing it.