DO THIS
Consider using contract summaries to help push out contract terms to parties within the organization who are responsible for contract compliance.
NOT THAT
Assume after contract execution, some internal partner will extract pertinent contract terms and then forward them to responsible people who will assume responsibility for contract compliance.
WHY
In his blog post “How Proverbial Wisdom Can Help Improve Contract Risk Mitigation”, Rod Linsley, a seasoned Contracts Management and Procurement professional, makes the case for using contract summaries when the organization does not have a contract lifecycle management (CLM) system to push out contract terms to responsible parties.
Contract summaries are important “[b]ecause there’s a really good chance that at least some of the intended recipients aren’t too familiar with the legalese used in contracts, that they may not understand the nuances and intent of what they’re reading, that they may not discover everything they might have responsibility for, or that they just might not get around to it.”
Failure to ensure contract compliance can range from minor penalties to catastrophic ones.
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