Contracts are the lifeblood of business operations, providing a framework for relationships between companies, suppliers, clients and partners. Effective contract management ensures that businesses can mitigate risks, capitalise on opportunities, and maintain healthy commercial relationships. Here, we delve into the key considerations for businesses when entering into contracts and provide strategies for enforcing or defending against breaches.

Key Considerations When Entering Into Contracts:

  1. Clarity and Precision:
    • Clearly define the terms and conditions to avoid ambiguities.
    • Specify obligations, deliverables, timelines and payment terms.
    • Include definitions for key terms to prevent misinterpretations.
  2. Scope and Objectives:
    • Ensure the contract’s scope aligns with your business objectives.
    • Identify the roles and responsibilities of each party involved.
    • Consider including an introduction or background to outline why the parties are entering into the contract and its purpose.
  3. Risk Management:
    • Identify potential risks and include clauses to mitigate them.
    • Consider force majeure clauses to address unforeseen circumstances.
    • Include indemnity and liability provisions to protect your business.
  4. Compliance:
    • Ensure the contract complies with relevant laws and regulations.
    • Include clauses for compliance with industry standards and ethical guidelines.
    • Regularly review and update contracts to reflect changes in the legal environment.
  5. Dispute Resolution:
    • Detail the process for raising and resolving disputes.
    • Include dispute resolution mechanisms, such as mediation or arbitration.
    • Specify the jurisdiction and governing law for the contract.


Strategies for Enforcing Contracts:

  1. Documentation:
    • Maintain comprehensive records of all communications and transactions related to the contract.
    • Ensure all amendments and variations are documented and signed by all parties.
  2. Regular Audits:
    • Conduct periodic audits to ensure compliance with contractual obligations.
    • Monitor performance and address issues promptly to prevent breaches.
  3. Effective Communication:
    • Foster open and clear communication with all parties involved.
    • Address potential issues early to avoid escalation.
  4. Legal Action:
    • Be prepared to seek legal advice if a breach occurs or will occur. The sooner the better.
    • Understand the remedies available, such as specific performance or damages.

Defending Against Breaches:

  1. Evidence Gathering:
    • Collect evidence to support your defence, including emails, meeting notes and transaction records.
    • Ensure all documentation is organized and readily accessible.
  2. Mitigation Efforts:
    • Demonstrate efforts to mitigate the impact of the alleged breach.
    • Show that you acted in good faith and took reasonable steps to fulfill your obligations.
  3. Legal Counsel:
    • Engage experienced lawyers to represent your interests. The earlier this is done the better.
    • Explore alternative dispute resolution options before resorting to litigation.
  4. Counterclaims:
    • Assess whether you have grounds for counterclaims against the other party.
    • Use counterclaims strategically to strengthen your defence.


Managing contractual obligations effectively is crucial for maintaining successful business relationships and minimising legal risks. By understanding the key considerations when entering into contracts and being prepared to enforce or defend against breaches, businesses can navigate the complexities of contract management with confidence.

If you need assistance with contract management or are facing a contract dispute, Milicevic Lawyers are here to help. Our experienced team provides expert legal advice and representation to ensure your business interests are protected. Contact us today to schedule a consultation and learn how we can support your business.

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