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Most contracts also have clauses dealing with liability, insurance, indemnification, confidentiality, and other factors. Some of these terms are fairly generic. Others include information critical to the definition of the relationship between your organization and your supplier. Unfortunately, many end users hand this information over to their lawyers without fully understanding the business terms inherent within them.

A full evaluation of the types of clauses that could (or should) exist in a commercial agreement for products or services is beyond the scope and intent of this book. Many books and online resources are available that can help provide additional insight into contract law and the legal obligations of commercial relationships. However, it is important to note that when reading through these clauses you should understand not just what they are saying, but why they exist in the agreement. Is there mutual liability and confidentiality? Should there be? Is the supplier insured, and is this insurance adequate if the product fails? All terms need to be understood before they are executed in an agreement.