7 Days, 7 Lessons -Contract Lifecycle and Risk Management
Day 1: Breach and Remedies – When Things Go Wrong
Welcome to a brand new week! This week, we move beyond drafting to focus on the Contract Lifecycle and Risk Management.
Today, we address the critical (and often inevitable) question: What happens when a contract is broken?
We will define what constitutes a breach and explore the primary legal tools—Damages and Specific Performance—available to the non-breaching party.
Learning Objectives
Define and differentiate between various types of breach of contract (e.g., minor, material, anticipatory).
Understand the two main categories of remedies available at law: monetary damages and equitable relief.
Analyse scenarios to determine the most appropriate and legally available remedy.
Lesson Plan and Activities
1. Warm-Up: The "What's Broken?" Scenario (15 mins)
Activity: Present participants with three very short, distinct contract scenarios (no more than two sentences each).
Discussion Prompt: Ask participants, "In which scenario is the contract 'most' broken?" Use a quick show of hands to gauge opinions.
Goal: This highlights the concept that not all breaches are equal, leading directly into the definition of breach types.
2. Core Concept: Classifying the Breach (20 mins)
Lecture/Discussion: Introduce and define the common types of breach, using the warm-up scenarios as examples:
Key Takeaway: The type of breach dictates the non-breaching party's right to terminate and their available remedies.
3. Core Concept: The Two Paths to Remedy (30 mins)
Review: The goal of remedies is generally to put the non-breaching party in the position they would have been in had the contract been fully performed.
Monetary Remedy: Damages
Equitable Remedy: Specific Performance
4. Activity: Damages vs. Performance Challenge (25 mins)
Process: Present 4-5 short, complex scenarios one at a time. Participants work in pairs or small groups.
Task: For each scenario, groups must discuss and justify three points:
Scenario Examples and Discussion Points:
Wrap-Up & Homework
Key Takeaway: When a contract is breached, the first step is to categorize the breach's severity. The second is to choose the remedy that best makes the innocent party whole—usually Damages, but sometimes the powerful, discretionary tool of Specific Performance.
Homework: Research and find a real-world case (famous or recent) involving a contract breach. Identify whether the court awarded Damages or Specific Performance, and write a short summary explaining the court's reasoning for choosing that particular remedy.
Day 2: Contract Termination Clauses
Today's lesson focuses on a crucial aspect of contract lifecycle management:
Contract Termination. We'll move beyond what happens after a breach and examine the key contractual provisions that allow parties to legally end an agreement prematurely.
Specifically, we'll learn the critical differences between terminating a contract for convenience and terminating for cause (breach).
Learning Objectives
Differentiate between the two main types of contractual termination rights: Termination for Convenience and Termination for Cause.
Identify the typical notification requirements and financial consequences associated with each clause.
Analyse when and how each clause serves as a strategic risk management tool.
Lesson Plan and Activities
1. Warm-Up: The "End Game" Scenario (10 mins)
Activity: Ask participants to think of a time they had to cancel a major service (e.g., a subscription, a contractor, a booking) that had a long-term agreement.
Discussion Prompt: Was the cancellation based on something the other party did (a problem or failure), or was it simply because your needs changed? What was the financial penalty, if any?
Goal: This exercise grounds the abstract legal concepts in personal experience, highlighting that contracts can end for different reasons, with different consequences.
2. Core Concept: Two Paths to Termination (25 mins)
Lecture/Discussion: Introduce and define the two main contractual termination clauses:
3. Activity: Clause Drafting Critique (40 mins)
Process: Divide the participants into small groups. Provide each group with three different poorly written or incomplete termination clause examples, focusing on ambiguity in:
Group Task: For each clause, groups must identify the risks posed to both the terminating party and the non-terminating party. Then, they must rewrite one clause to be clear, unambiguous, and fair.
4. Role-Play: The Termination Decision (15 mins)
Scenario: A construction company (Party A) is building a custom factory for a client (Party B).
Roles: Assign one group to be Party A (Contractor) and the other to be Party B (Client).
The Problem: Party B's business model changes, and they no longer need the factory built exactly as designed, but Party A has performed 75% of the work perfectly. Party B needs to end the contract.
Task: The Client group (Party B) must write and justify the termination notice. Should they terminate for Cause (claiming the design change constitutes an "inability to perform") or for Convenience (swallowing the agreed-upon costs)?
Discussion: Lead a discussion on the ethical and financial consequences of trying to improperly use TFC when TFCv is the correct (but more costly) mechanism.
Wrap-Up & Homework
Key Takeaway: The difference between termination for Cause and for Convenience is fundamental: Cause is for failure; Convenience is for strategy. Using the wrong clause exposes your organization to litigation and unnecessary costs. Always ensure a TFC clause includes a Cure Period for protection.
Homework: Draft a complete, two-paragraph termination clause that clearly addresses both Termination for Cause (including a 15-day cure period) and Termination for Convenience (requiring 30 days written notice and payment of all incurred costs plus 10% profit margin).
Day 3: Force Majeure – Acts of God and Unforeseen Events
Today, we address one of the most critical risk management clauses in any contract: Force Majeure (French for "superior force").
We will learn how this clause operates to excuse parties from performance when events outside their reasonable control make fulfilling contractual obligations impossible or impractical.
Learning Objectives
Define the legal concept of Force Majeure and its purpose in contract law.
Identify the typical "triggering events" included in a Force Majeure clause (e.g., Acts of God, war, and government actions).
Interpret the practical and legal steps a party must take to successfully invoke the clause.
Lesson Plan and Activities
1. Warm-Up: The Impossible Task (10 mins)
Activity: Present the class with a simple contractual obligation (e.g., "Party A must deliver 5,000 units of product to Party B's factory by Friday").
Discussion Prompt: Now, imagine three different reasons why Party A might fail: 1) Party A forgot to order the raw materials. 2) The delivery truck broke down. 3) A massive, unprecedented flood completely submerged the factory. Which reason should legally excuse the failure, and why?
Goal: This exercise establishes the foundational principle that Force Majeure applies only when the event is external and unforeseeable, not merely inconvenient or due to negligence.
2. Core Concept: Defining and Triggering the Clause (25 mins)
Lecture/Discussion: Introduce and define Force Majeure.
Common Triggering Events: Review the standard list, emphasizing that the clause must be explicit about what is covered:
3. Activity: The Interpretation Challenge (40 mins)
Process: Divide participants into small groups. Provide each group with three different versions of a Force Majeure clause.
Group Task: For each clause, groups must analyse the language to determine:
Goal: Emphasize that in contract law, the courts only look at the explicit language used. If an event isn't listed or covered, the risk remains with the performing party.
4. Practical Steps: After the Storm (15 mins)
Lecture/Discussion: Even if a Force Majeure event occurs, a party must still manage the risk:
Wrap-Up & Homework
Key Takeaway: A well-drafted Force Majeure clause is essential risk management, but it only works if it is specific about the events covered and the party strictly adheres to the notice and mitigation procedures.
Homework: Review a professional contract you currently use or find an example online (like a SaaS agreement). Locate the Force Majeure clause and rewrite one section of the list of triggering events to be more comprehensive and specifically include "government-mandated shutdowns not related to public health."
Welcome to Day 4: Indemnities and Warranties – Allocating Risk
Today, we focus on two of the most critical risk-shifting mechanisms in any contract:
Warranties and Indemnities. These clauses determine who pays when a problem arises, effectively transferring financial responsibility and liability between the contracting parties.
Learning Objectives
Distinguish between a Warranty (a promise of a condition) and an Indemnity (a promise to pay for a loss).
Analyse how each clause legally allocates financial risk regarding third-party claims and internal losses.
Identify key negotiation points when drafting or reviewing both Warranty and Indemnity clauses.
Lesson Plan and Activities
1. Warm-Up: The Problem/Payer Match (10 mins)
Activity: Present two simple scenarios. Ask participants to identify which party should be financially responsible, and why.
Goal: Introduce the concepts: Scenario A is about a failure of a promise (Warranty), and Scenario B is about liability to a third party (Indemnity).
2. Core Concept: Warranty – The Promise and the Breach (20 mins)
Lecture/Discussion: Define and explain Warranties.
3. Core Concept: Indemnity – The Promise to Pay (20 mins)
Lecture/Discussion: Define and explain Indemnities.
4. Activity: Negotiating the Risk (35 mins)
Process: Divide participants into small groups. Assign two roles: Service Provider (Indemnitor) and Client (Indemnitee).
Task: Present a draft clause containing both a Warranty section and an Indemnity section.
Negotiation Focus: Groups must negotiate and rewrite the two clauses based on their role:
Debrief: Discuss the successful strategies used by each side to either shift or reduce financial risk.
Wrap-Up & Homework
Key Takeaway: Always remember the core difference: A Warranty is about the condition of the item or facts, leading to standard breach of contract damages. An Indemnity is a promise to pay for specified losses, often third-party claims, and typically transfers the full financial exposure.
Homework: Write a one-paragraph summary explaining why a party might prefer to seek compensation under a specific Indemnity clause rather than suing for a breach of Warranty—even if both apply to the same problem. (Hint: Think about financial caps).
Dispute Resolution: Mediation, Arbitration, and Litigation Lesson
This lesson compares the primary methods for resolving contractual disputes, focusing on the out-of-court options (Mediation and Arbitration) against the formal court process (Litigation).
Learning Objectives
By the end of this lesson, students will be able to:
Define Mediation, Arbitration, and Litigation.
Compare and contrast the three methods based on formality, cost, time, and finality of the decision.
Analyse the conditions under which a party would choose one method over the others for a contract dispute.
1. Introduction: The Broken Deal Scenario (10 mins)
Activity: Think-Pair-Share
2. Core Concepts: Dispute Resolution Methods (20 mins)
We'll define the three methods, emphasizing the role of the third party and the nature of the outcome.
Mediation (Alternative Dispute Resolution/ADR)
Process and Role: Mediation is the least formal and most flexible method. A neutral third party, the Mediator, acts as a facilitator to help the disputing parties communicate, understand each other's positions, and explore creative settlement options. The mediator does not make a decision.
Outcome and Control: The outcome is a voluntary agreement determined and controlled entirely by the parties. If an agreement is reached, it becomes a legally enforceable settlement contract; if not, the dispute continues. Mediation is excellent for disputes where preserving the business relationship is important. It is typically the fastest and cheapest option.
Arbitration (Alternative Dispute Resolution/ADR)
Process and Role: Arbitration is more formal than mediation but less formal than litigation. It often resembles a private, streamlined "mini-trial." A neutral third party, the Arbitrator (or panel of arbitrators), acts as a private judge, hearing evidence, testimony, and legal arguments presented by both sides.
Outcome and Control: The arbitrator issues a final decision known as an Award. This award is typically binding and legally enforceable, meaning the parties are required to abide by it, and there are very limited rights of appeal. Parties often choose arbitrators based on their expertise in the subject matter (e.g., construction law, maritime law). It is private and usually quicker than litigation.
Litigation
Process and Role: Litigation is the most formal method, involving the public court system (state or federal). The process is governed by strict rules of procedure, evidence, and court scheduling. A neutral third party (Judge and/or Jury) hears the case and applies the law.
Outcome and Control: The outcome is a binding Judgment issued by the court. Litigation is the most time-consuming (often taking years), the most expensive, and it is a matter of public record. While it offers the maximum procedural protection and rights of appeal, the parties lose all control over the final outcome to the court.
3. Activity: Comparison Scenarios (15 mins)
Instructions: Divide the class into groups. Present the following characteristics and have each group debate and decide whether the characteristic primarily describes Mediation (M), Arbitration (A), or Litigation (L).
Confidentiality: The entire process and outcome are kept private. (M and A)
Finality of Decision: The resolution is immediately and legally enforceable with almost no chance to appeal. (A)
Control over Outcome: Parties can walk away at any time if they don't like the terms being discussed. (M)
Public Record: Testimony, evidence, and the final decision are available to the press and public. (L)
Cost: Requires high fees for expert witnesses, lawyers, and extensive document discovery, making it the most costly. (L)
Decision-Maker's Expertise: The decision-maker can be specifically chosen for their background in, say, software design. (A)
Review: Discuss the answers, clarifying why mediation is focused on preserving relationships and voluntary outcomes, while arbitration offers a binding decision in a private forum, and litigation is the formal, public, high-cost default.
4. Conclusion & Application: Contract Clause Analysis (10 mins)
Activity: Choosing the Right Clause
Summary: Remind students that Mediation and Arbitration are the primary out-of-court methods favoured in contracts because they offer greater speed, lower cost, and more privacy than Litigation.
STOP THE SCROLL!
Have you ever felt that sinking feeling after signing a big contract—like you just bought a complicated machine with no instruction manual?
You spent weeks negotiating the fine print, finally signed the papers... and then what? Suddenly, you're hit with a penalty fee, an unexpected auto-renewal, or a missed deadline you didn't even know existed.
The truth is, 80% of contract risk happens after the signature.
Don't let your signed contract become a ticking time bomb!
Today's Lesson: Contract Compliance and Management is about giving you the checklist and tools to master the post-signing phase, ensuring you meet every obligation, never miss a renewal deadline, and control the contract's outcome.
This lesson focuses on the critical phase of the contract lifecycle that begins after the signatures are dry: Contract Compliance and Management. We will explore how to ensure all obligations are met, manage key dates, and handle renewals or terminations properly.
Learning Objectives
By the end of this lesson, students will be able to:
Identify the essential tasks in the post-signing phase of contract management.
Explain the importance of tracking compliance, milestones, and key dates.
Differentiate between the processes for contract renewal, amendment, and termination.
1. Introduction: The Post-Signature Risk (10 mins)
Activity: The Forgotten Clause
Transition: Introduce the three pillars of effective contract management: Compliance, Key Date Management, and Lifecycle Events (Renewals, Amendments, Termination).
2. Pillar 1: Ensuring Compliance and Obligations (20 mins)
Compliance is the act of ensuring both parties fulfil all the duties and requirements laid out in the contract.
A. Extracting Obligations
The first step is moving the contract from a static file to an active document.
Key Task: Identify all Action Items (what we must do) and Counterparty Obligations (what they must do).
Compliance Risk: If we fail to perform a required action, we are in Breach of Contract, which can lead to penalties, financial loss, or contract termination.
B. Performance Monitoring
Contract management requires continuous monitoring, not just a single check.
Metrics: Track performance indicators (KPIs) related to the contract.
Documentation: Maintain a robust record of all interactions, approvals, change orders, and delivery confirmations. This is crucial if a dispute arises.
3. Pillar 2: Managing Key Dates and Milestones (15 mins)
The most common cause of contract loss or unexpected renewal is the failure to manage dates.
Critical Dates to Track:
Activity: The Renewal Trap
4. Pillar 3: Managing Lifecycle Events (10 mins)
Contracts don't just expire; they are usually Renewed, Amended, or Terminated.
A. Renewals
Review the contract well before the Notice Deadline.
Questions to Ask: Has the vendor's performance been satisfactory? Are the current terms (pricing, scope) still competitive? Do we still need the product/service?
A renewal is an opportunity to renegotiate better terms.
B. Amendments (Changes)
If the parties agree to modify a contract after it's signed (e.g., change the scope of work or extend a deadline), they must execute a formal Amendment (or Change Order).
The amendment must be signed by authorized representatives of both parties and should clearly reference and state which original clause it supersedes.
C. Termination
Contracts can be terminated in several ways:
5. Conclusion: CMS and the Notice of Non-Renewal (10 mins)
Contract Management Software (CMS)
To avoid the risks of manual tracking, many companies rely on Contract Management Software (CMS).
Core Function: A CMS provides a Centralized Repository to store all contracts securely.
Risk Mitigation: Its most valuable feature is Automated Alerts and Notifications. The CMS tracks the complex timeline (Effective Date, Expiration, and Notice Period) and sends designated personnel (e.g., Legal, Finance) automatic email reminders well in advance of a deadline. This automation is key to preventing accidental auto-renewals and compliance failures.
The Notice of Non-Renewal
This is the formal document used to prevent auto-renewal. When drafting this notice:
Reference: Clearly state the Contract Title and Date.
Delivery: Ensure the notice is sent to the correct recipient and address, strictly following the Notice Clause in the contract (e.g., certified mail to the Legal Department).
Statement: Use clear, unambiguous language: "This letter serves as formal written notice that [Your Company Name] has elected not to renew the agreement."
Date: The date the notice is sent must fall before the contractual Notice Period Deadline.
Using a CMS and strict adherence to formal notice procedures significantly reduces risk, saves costs, and ensures the company maintains control over its contractual obligations.
Let's explore common scenarios where poor contract management leads directly to a breach of contract. Understanding these practical examples highlights why the post-signing phase is so critical.
Common Breach of Contract Scenarios
A breach of contract occurs when one party fails to fulfil their promised obligations outlined in the agreement. These failures often stem not from intentional malice, but from a breakdown in the compliance and management systems.
1. The Undelivered Deliverable (Scope Breach)
The Scenario: A contract for a major IT upgrade requires the vendor to deliver a completed user training manual prior to system launch. The project manager, focused solely on the technical build, forgets this contractual requirement until the system is live.
The Management Failure: Failure to properly extract and track specific obligations and assign a responsible party and deadline outside of the core project scope.
The Breach: The vendor is in breach of the delivery clause, potentially delaying final payment or triggering penalty clauses defined in the agreement, as a required deliverable was not met on time.
2. The Missing Maintenance Window (Service Level Agreement (SLA) Breach)
The Scenario: A software contract guarantees a minimum uptime of $99.99\%$ (the SLA). When the system unexpectedly crashes, the vendor takes four hours to restore service, exceeding the contractually guaranteed maximum downtime.
The Management Failure: Poor or non-existent performance monitoring. The client's team may not have a clear system for logging and measuring service failures against the precise metrics defined in the contract's SLA.
The Breach: The vendor is in breach of the SLA. This typically triggers a pre-defined service credit or financial penalty that the client can deduct from their next payment. Chronic SLA breaches often lead to the client's right to terminate the contract for cause.
3. The Late Payment (Financial Breach)
The Scenario: A contract requires the client to pay all invoices within 30 days of receipt. Due to a complicated internal accounting process or a shift in the finance team's responsibilities, an invoice is overlooked and paid 45 days late.
The Management Failure: Failure to track Key Dates and financial obligations accurately within the accounting or contract management system.
The Breach: The client is in breach of the payment terms. The vendor is now entitled to charge late fees or interest as specified in the contract. Repeated late payments could allow the vendor to legally suspend services or terminate the agreement.
4. The Accidental Disclosure (Confidentiality Breach)
The Scenario: A consulting agreement includes a strict Non-Disclosure Agreement (NDA) clause specifying that project data must be stored only on secure, client-approved servers. A consultant stores a batch of files on their personal cloud drive for easier access.
The Management Failure: Failure to enforce compliance and policy training related to the contract's protective clauses after signing. The compliance requirement was noted but not actively managed.
The Breach: The consultant (or their company) is in breach of the confidentiality clause. Even if no damage occurred, the act of misplacing the data itself can constitute a breach, potentially leading to immediate contract termination and a costly legal claim.
Drafting a formal notice of termination for cause requires precision, legal clarity, and strict adherence to the contract's provisions.
We'll use Scenario 2 (SLA Breach)—The Missing Maintenance Window—as the basis for our draft.
Drafting a Termination for Cause Letter (SLA Breach)
The goal of this letter is to formally notify the counterparty that they are in material breach of the contract, provide the required opportunity to fix (cure) the breach, and, failing that, terminate the agreement.
Key Contractual Provisions to Reference
Before drafting, you must locate these details in the original contract:
Termination for Cause Clause: The specific section detailing your right to terminate due to a breach.
Cure Period: The number of days the breaching party has to fix the breach (e.g., 30 days) before termination takes effect.
Notice Clause: The specific required method of delivery (e.g., Certified Mail, return receipt requested) and the correct physical address for legal notices.
SLA Clause: The specific clause (e.g., Section 4.1) that defines the breached performance standard (e.g., $99.99\%$ uptime).
Sample Letter: Notice of Breach and Termination
[Your Company Letterhead]
Date: November 15, 2025
Via Certified Mail and Email (Ensure this matches the contract's Notice Clause)
[Vendor Contact Name]
[Vendor Title]
[Vendor Legal Notice Address]
Subject: FORMAL NOTICE OF MATERIAL BREACH AND INTENT TO TERMINATE—Master Service Agreement (MSA-456) dated January 1, 2024
Dear [Vendor Contact Name]:
This letter serves as formal notice that [Vendor Name] is in Material Breach of the Master Service Agreement (MSA-456) executed between our parties on January 1, 2024 (the "Agreement").
Identification of Breach
The breach relates directly to the Service Level Agreement (SLA) defined in Section 4.1 of the Agreement, which guarantees a minimum monthly system uptime of £99.99
Specifically:
On November 10, 2025, at 10:00 AM GMT, your provided system (System ID: XZY123) suffered an unplanned outage.
The system was not fully restored until November 10, 2025, at 2:00 PM GMT, resulting in four (4) consecutive hours of downtime.
This period of unavailability violates the maximum allowable downtime stipulated in the SLA for the current service period.
Cure Period and Demand
Pursuant to the Termination for Cause provision outlined in Section 12.2 of the Agreement, [Vendor Name] is hereby granted a period of [Insert Cure Period, e.g., thirty (30)] days from the date of this letter to cure this material breach.
To cure this breach, [Vendor Name] must provide:
A written remediation plan detailing immediate steps to prevent recurrence.
Adequate assurance that all future performance will meet or exceed the contractual SLAs.
Termination Warning
Should [Vendor Name] fail to cure this breach to the satisfaction of [Your Company Name] within the specified [Cure Period] days, the Agreement will be deemed terminated, effective immediately, upon the expiration of the cure period, without further notice.
We reserve all rights and remedies available to us under the Agreement and at law, including, but not limited to, the right to recover any damages resulting from this breach.
Please direct all future correspondence regarding this matter to [Your Name/Legal Counsel Name] at [Your Phone Number and Email Address].
Sincerely,
[Signature]
[Your Typed Name]
[Your Title, e.g., Chief Procurement Officer]
(Authorized Representative of [Your Company Name])
Welcome to the final day of this week's 7 Days, 7 Lesson's series
Final Review & Strategy Synthesis: The Due Diligence Project
This lesson serves as the capstone for your study of contract negotiation and management.
You will apply the skills and knowledge from previous lessons—including dispute resolution, negotiation tactics, and post-signing compliance—to a single, comprehensive Due Diligence Project.
Learning Objectives
By the end of this lesson, students will be able to:
Synthesize negotiation strategies to structure a favourable contract proposal.
Identify and mitigate high-risk clauses during the due diligence review phase.
Develop a robust post-signing Contract Management Plan (CMP) for a complex, multi-year agreement.
1. Project Introduction: The "FusionTech" Contract (15 mins)
Scenario Setup
Your company, Global Innovations Corp. (GIC), is about to sign a multi-year, $50 million contract with a tech firm, FusionTech, to build a custom, proprietary data security platform. This is a high-stakes deal with significant risk if delivery is late or the system fails.
Contract Overview (The Risky Terms)
Review these key areas of the proposed FusionTech contract:
Duration: 5 years, with an unfavorable automatic renewal clause included.
Payment: Milestone-based, with a large 20% down payment due upon signing.
Dispute Resolution: Requires mandatory Binding Arbitration located far away, 2,000 miles from GIC headquarters.
SLAs: Guarantees £99.5 uptime. The penalty for failure is a minimal £1 service credit on the monthly fee.
Termination: Only permitted "for cause," with a long 90-day cure period.
2. Activity 1: Negotiation Strategy Synthesis (20 mins)
Instructions: Divide the class into small teams (3-4 students). Each team acts as the negotiation team for GIC. Your task is to identify the three riskiest clauses listed above and propose the ideal revised language.
Discussion Points:
The Renewal Clause: How would you modify the 5-year auto-renewal clause to give GIC more control? Focus on changing the Notice Period to give GIC adequate time to decide.
The Dispute Resolution Clause: Mandatory Binding Arbitration 2,000 miles away is unfavorable. How should GIC propose changing the method (e.g., adding mandatory Mediation first) and insisting on a local venue?
The SLA/Penalty Clause: A $1\%$ service credit is likely too weak for a critical security platform failure. Propose a change to the penalty structure that creates a stronger financial incentive for FusionTech to maintain performance.
Group Task: For each of your three proposed changes, draft a brief rationale (3-4 sentences) explaining why FusionTech should agree, using learned negotiation concepts like Anchoring (starting high) or focusing on Mutually Beneficial terms.
3. Activity 2: The Due Diligence Checklist (15 mins)
Due diligence is the comprehensive audit before signing. It ensures the contract is complete, accurate, and aligned with business goals.
Instructions: Working individually, review the following checklist items. For each one, determine if it is a task that must be verified Before Signing (B) the contract or is a task for Post-Signing Management (P).
Verify that the individual signing the contract has the official corporate authority to bind the company. (B)
Schedule automated calendar reminders for the 90-day Termination Notice Deadline. (P)
Extract all warranty terms and store them in the compliance database for future reference. (P)
Check that the payment schedule exactly matches the budget approved by the Finance department. (B)
File the executed, final, signed copy of the contract in the central repository. (P)
Confirm all blanks fields (dates, amounts, attachments) have been correctly filled in by both parties. (B)
Review: Discuss the answers, emphasizing that proper due diligence requires detailed verification before execution, preventing future legal headaches.
4. Final Synthesis: Creating the Management Plan (10 mins)
The final step is translating the complex signed contract into a manageable roadmap—the Contract Management Plan (CMP).
Task: Based on the high-stakes FusionTech contract (5 years, milestones, strict SLAs), identify the three most critical, non-negotiable elements that must be included in GIC's CMP to mitigate risk and ensure compliance.
Auto-Renewal Mitigation: Establish an immediate system to track the renewal deadline and assign at least two different personnel (e.g., Procurement and Legal) to receive alerts 180 days and 90 days before the Notice Deadline.
Financial Control: Implement a strict internal approval process that requires verified evidence of milestone completion before authorizing the release of any milestone-based payment.
Performance Auditing: Set up a continuous logging mechanism to measure and report system uptime daily against the $99.5\%$ SLA, creating an objective audit trail necessary to claim future service credits or exercise the right to terminate for cause.
Conclusion: Contract success is not defined by signing, but by the disciplined execution of the management plan over the entire life of the agreement.