The meaning of legal terms used in the contract
- Hereby-by virtue of
- Render-make
- Prior-before
- Execution-performing a task
- Pursuant to-according to
- Strict compliance-adherence to given rules
- Disclose-bring out
- Assigns- allocates a piece of work
- Merger- combining aspect
- Binding-obligating one to
- Deemed-assumed
- Construed-given by
- The titles have been exerted in the contact statement after a careful study of the document.
- Short explanations of the requirements of each clause.
Arbitration
It provides a method of solving conflicts that may arise in the cause of fulfilling the contract between the two parties.
Assignment
It explains the task to be performed during the contract and it is the reason for hiring the contractor in the first place.
Choice of Law
It specifies the particular legal principles applicable to this specific contract.
Compensation
It explains the remuneration or payment to a party for tasks performed after completion.
Conflict of Interest
It elaborates what is to be done in case individual interests that are against the contract emerge as well as prevents the parties from the contract from taking part in activities that directly conflict with the task to be performed.
Entire Agreement
It explains piecemeal interpretations of the agreements and their validity
Exclusivity
It explains the importance of the contract over all other agreements.
Expenses
It explains how the contractor is to be reimbursed in case of extra expenses from their monies.
Force Majeure
It explains the superiority of the contract over other agreements that either party may get into in the course of the contract.
Headings
It elaborates on how various titles should be interpreted.
Insurance
It explains the nature and validity of insurance policies that may be sorted by either party.
Inventions
This clause sets the path straight about discoveries or other related inventions by either party during the contract.
Invoicing
It explains how to fill and submit invoices.
Language
The clause specifies the language to be used in interpreting the contract.
Merger
Explains what should happen in case the company is merged with other companies in the course of the contract.
Non-Hire Provision
It prevents one party from hiring employees of the other within a specified period after the contract.
Service of Notices
It gives the procedure to be followed in serving notices.
Services to Be Provided
This clause explains the particular task to be performed during the duration of the contract.
Severability
Elaborates how punitive, non-adherence to the terms of the contract can be detrimental.
Successors and Assigns
It explains how successors and other similar parties can affect the contract.
Term
It gives details on the duration of the contract from the beginning to the end.
Termination
It explains how the contract can be brought to an end and what actions can lead to such a decision.
Trade Secrets and Confidentiality
This clause prevents the parties from exposing confidential information related to the business to a third party not stated in the contract.
Waiver
It brings out situations that may lead to the nullification of the whole contract.
Written reports
It elaborates on the impacts of the various reports that may contradict the terms of the contract.
- The contract starts upon signing of the agreement and ends on the date that is to be specified under the end of the termination clause.
- The contract has to complete the tasks specified in the contract. They will then serve the company with the invoice containing the amounts to be paid. Payments will be made after processing of the invoice (Randy 33).
- Expenses paid from the contractor’s pocket to cater for the contractual assignments are paid back to together with their remuneration. He is expected to specify such payments on the invoice and they should be supported with their specific receipts.
- The contractor is allowed to work for others as per the terms of the contract, but he is expected to give more priority to this contract (Ewan 42).
- A third party like the contractor’s son or wife can only take up the contractual assignments after the contractor agrees with the company on such arrangements in writing and the company must agree if not then a third party cannot transact.
- Intellectual property relates to many inventions and discoveries that may come up in the course of the contract. Such properties are owned by the company and not the contractor as it is clearly stated under the invention clause.
- The contract binds the contractor after completion in terms of who he can employ or hire.
- The contractor is restricted from setting up his own business with any of the employees of the company six months after completion of the contract.
- In the case of disagreements between the contractor and the company, they should make use of the arbitration clause. The arbitration clause contains the rules and venue at which the conflict will be resolved. The rules are specified by the parties to the contract at the time of signing the contract and hence they should be adhered to in case of any breach of contract or dispute (Atiyah 56).
Final analysis and conclusion
The contract is a bit fair, although to some extent it favors the company. It is fair in that at the end of it all the contractor is fully compensated for the work done and any expenses incurred from their own pockets reimbursed as long as they can provide proof of the expenses incurred. The company also benefits from the services rendered by the contractor thus they have nothing to lose since their business secrets are safe as per the terms of the contract and if the other partner gives out any of their insider information then they will be liable to prosecution by law.
However, it is unfair that the contractor does not gain anything from the intellectual properties that may come up in the course of the contract. The terms are clear that any such inventions will be the sole property of the company and this may make the employees of the company reluctant to provide all their expertise as well as explore their creative potential for the fear of not being recognized. The company is not expected to pay for such discoveries in any way as it is not stated in the contract and making the company pay will result in a breach of the contract yet a contract is usually protected by law.
Works Cited
Atiyah, Philip. The Rise and Fall of Freedom of Contract. New York, NY: Clarendon Press, 2009. Print.
Ewan, McKendrick. Contract Law – Text, Cases and Materials, London, UK: Oxford University Press, 2006. Print.
Randy, Barnett. Contracts. London, UK: Aspen Publishers, 2010. Print.