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Avoid Contract Traps

By Stanley P. Jaskiewicz
June 28, 2005

e-Commerce veterans may think they know how to read a business contract, and for most contracts, they're right, because checking what has been typed onto a preprinted form ' the price, deliverables and delivery date ' is usually enough to know.

But the provisions of tech contracts that really affect success may not be so obvious. Contract boilerplates often hide traps for the uninitiated. Merely reading the language specifically added to a form may not reveal the actual risks lurking in the contract.

This is an important consideration for counsel who advise e-commerce ventures, because some contract risks are unique to e-commerce contracts ' such as whether a new technology will work at a commercially practicable price point, for example. But many other tech-sector risks ' and solutions ' will be familiar to those who work on paper files, or communicate exclusively by land-line phones.

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