Contract Clauses

Most Favored Nation Clause in Commercial Contracts

A most favored nation clause is a clause that will sometimes be found in commercial contracts. It is a contractual provision in which the seller agrees not to offer a better deal to another buyer without offering similar terms to the original buyer.

However, because of anti-trust issues, using a most favored nation provision must be done under proper specifications.

Liquidated Damages Clause - The Role Uncertainty Plays in Contracts

A liquidated damages clause is a provision that sometimes appears in contracts when it would be difficult for one party to the agreement to calculate damages should the other party decide to breach the contract. However, because there are many rules which vary from state to state as to what is required for a liquidated damages provision to be upheld by a court, not all liquidated damages clauses will able to be enforced. Thus, before you decide to use a liquidated damages provision in your next agreement or sign off on an existing liquidated damages clause, it's important to make sure the clause is drafted properly. 

Making an Informative Decision: Pros and Cons of Having an Arbitration Clause in a Contract

Arbitration is a popular mechanism often used in place of litigation. When a dispute occurs between respective parties that decide to handle their disputes in an arbitration proceeding, instead of bringing the dispute to a courtroom, it is brought before an arbitrator whom will solely hand down a resolution to that particular dispute. There are many pros and cons of having an arbitration clause in a contract and both should be looked at carefully to ensure you are behaving in your best interests. Deciding whether arbitration is right for you can be a difficult and complicated decision. While arbitration may be appropriate in some cases, it may not be the best decision in others. The decision to arbitrate should not be a “one size fits all” type of decision. To find out if arbitration is for you, it is often recommended that you speak to an attorney familiar with the arbitration process in order to advise you accordingly.