EIMF subject-matter experts deliver engaging and interactive courses across a broad spectrum of areas, that can be enjoyed in the comfort of your own chosen environment. Read more
Business success largely depends on the successful closing and completion of chosen commercial transactions. Most often such commercial transactions are pre-agreed between the parties and represent valid commercial contracts. Commercial contracts can be oral, written, partly written and partly oral or implied based on the conduct of the parties. However, proving the terms of an oral contract is a matter of evidence and can be very difficult when there is nothing in writing to confirm the precise rights and obligations which have been agreed to between the parties. A written contract serves as its own proof that an agreement was made.
Well drafted and effective commercial contracts avoid hidden risks and liabilities and usually lead to successful transaction outcomes. On the other hand, poorly drafted commercial contracts increase the likelihood of claims and disputes often leading to loss of business opportunities and revenue. Therefore, one needs to have the knowhow and make the effort in getting the contract right in the first place.
This intensive training course is designed to give participants the required theoretical and practical knowledge and the basic legal and commercial information, in order to improve their drafting skills and enable them to manage contractual pitfalls and draft clear, transparent and unambiguous commercial contracts that conform on a legal and commercial level.
The training course focuses on the structure, terms and conditions of a basic commercial contract and pays particular attention to the importance of contract interpretation as well as providing an overview of the allocation of risk between the parties.
It also briefly discusses the factors influencing the drafting process and allows time for the participants to engage in various drafting exercises and to review certain commercial contract clauses.
By the end of the programme, participants will:
- Identify the, and refer to, commercial contracts used in various industries and for various purposes
- Recognize, define and analyse the essential elements of a valid and enforceable contract
- Be aware of the drafting process and contract execution formalities
- Be able to form and structure a basic commercial contract
- Identify and describe the parties of a commercial contract
- Be able to differentiate between the commercial contract’s preliminary clauses, performance obligations and payment obligations
- Understand contractual limitations and exclusion of damages
- Be able to manage the risk allocation between the parties of the commercial contract
- Understand the use of warranties and indemnities and learn how to draft clauses containing these
- Understand how the contract terminates and the effect of force majeure clauses
- Have an overview on the allocation of risk between the parties
- Understand the boilerplate clauses and know how to insert them in the commercial contract
- Be able to manage the reviewing and drafting of basic commercial contracts
- What are commercial contracts
- Types and purpose of commercial contracts
- Reference to and discussion of commercial contracts used in various industries and/or for various purposes
Forming a commercial contract
- The Contract Law
- The essential elements of a contract
- Validity and enforceability
The Drafting Process I
- Introduction to the drafting process
- Key stages and technical requirements
- Figures and formulas
- Execution formalities
The Drafting Process II
- Form and Skeleton Structure
- Commencement section and dates
The Parties to the Commercial Contract
- Describing the parties
- The issue of capacity
- Privity of contract
- Preliminary clauses
- Performance obligations
- Payment obligations
- Understanding limits and exclusions of liabilities
- Contractual limitations
- Exclusions of damages
- Liability for breach of contract
- Splitting into groups to draft clauses
Warranties and Indemnities
- What are warranties and indemnities
- Legal Procedures
- How to draft warranties and indemnities
Contract Termination and Force Majeure Clauses
- Overview of the termination of a contract
- Breach of contract and termination clauses
- Force majeure clauses (discussion about Covid19)
- Risk allocation
- Effect of force majeure clauses
- What boilerplate clauses are
- Why and when to use boilerplate clauses
- How to insert boilerplate clauses in contracts
- Boilerplate clauses’ checklist
Valuation Exercise and Drafting Exercise
- Splitting into groups to assess specific forms of commercial contracts and draft clauses
- Questions and answers
The programme is designed to deliver theoretical knowledge and practical experience and enhance participants’ skills mainly via short lectures supported by power-point presentations and practical examples.
These short lectures aim at delineating the main issues while providing the grounds for in-depth deliberation and interactive discussion. Moreover, participants will also benefit from group work during which will be involved in valuation and assessment as well as drafting exercises.
The core of the training course is useful for any framework, since it is mainly driven towards raising the most important principles and issues when drafting commercial contracts, while offering certain fundamental tips. Occasionally, we draw provisions from Cyprus law, purely to exemplify the interaction between law and contract-drafting and the legal implications thereof. This is a more practical course, since we are not going to teach participants contract law. Instead, the purpose of the course is to help drafters identify the necessary substantive provisions that should be included in a contract. The main takeaway from the course is that provisions should be included in contracts by design and not by accident.
Participants will also benefit from feedback at the end of the programme and take away the knowledge gained to be transferred to their workplace.
This programme may be approved for up to 14 CPD units in Law. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.
The Cyprus Bar Association (CyBAR) has confirmed that this programme is accredited for 14 CPD units. Professionals requiring CPD units to meet the education requirements for CyBAR licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Law, are advised to consider training subjects in categories that indicate CPD training in Law.
Who Should Attend
This course is ideal for those involved in contract negotiating, drafting or reviewing as well as those responsible for auditing, approving, or managing any part/s of the contracts created by the organisation.
Furthermore, the programme may also benefit:
- C-Level Executives and Senior Managers in all industries
- Private practice lawyers
- Legal advisors and consultants involved in contract negotiating, drafting or reviewing
- Sales and Business Development Executives and Managers
- Managing Directors
- Project Managers and Associate Project Managers
- Managers and personnel responsible for drafting, adapting and using contract templates
- Commercial Directors
- Financial Advisors
- Internal Lawyers
- Internal Auditors
- Service Providers
- Corporate services heads and team members
- Web Developers involved in contract negotiating, drafting or reviewing
- IT Professionals who enter into contracts
- Contracts Analysts
- Contract Engineers
- Individuals involved in tendering /contracting functions
- Contract Administrators and Contract Strategists
- Contracting Unit Supervisors
- Claims Managers and Business Audit Officers
- General Managers involved in contract negotiation and disputes
- Commercial Managers
- Legal Department staff looking for new techniques and an international approach
- Anyone involved in the strategy and management of disputes
- Contract advisors, managers, officers, and administrators