Due Diligence And Review Of Contracts
When entering into a contract with a counterparty, particularly if this party provides the contract, it is desirable to first verify the contents for compliance with current legislation, and for any financial and other risks it exposes the company to.
What is a legal examination of a contract?
Due diligence of a contract is a detailed analysis of the provisions of a contract to verify its compliance with the legal norms of the Russian Federation, in order to identify and eliminate legal risks and possible adverse effects the implementation of the contract could lead to.
Due diligence requires that the lawyer has in-depth knowledge of existing law, and research into expert comments on the normative legal acts of the Russian Federation and judicial practice.
How is due diligence of a contract conducted?
Due diligence of a contract involves the following:
- Detailed study of the contract (verification that the contract contains the terms as prescribed by law, analysis of the provisions on the timing of the execution of obligations, responsibilities of the parties, etc.);
- Search and identification of potential risks;
- Discussion and approval of changes to the contract terms.
- The results of due diligence of the contract, at the discretion of the client, may be delivered in the following forms:
- Detailed paragraph-by-paragraph analysis of the provisions of the contract with links to legislative norms;
- Report on the discrepancies in the contract;
- Provision of an edited version of the contract.
VALEN experts can conduct due diligence of contracts drafted by the client or counterparty. Our services include:
- Analysis of the terms of the contract for compliance with current legislation;
- Clarification of the legal meaning of the contract terms;
- Identification and removal of any terms in the contract that could potentially violate the client’s rights or result in negative consequences;
- Inclusion in the contract of any terms necessary to protect the legitimate rights and interests of the client.