BUSINESS & TECHNOLOGY CONTRACTING

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Indemnities and Liability Limits in SA Supply & Service Agreements

    This practice note focuses on best practices for negotiating indemnification and limitation of liability provisions in South African supply and service agreements, emphasizing the importance of clear, balanced, and enforceable clauses that comply with legal requirements. It highlights key legal principles, common pitfalls, and actionable recommendations to ensure that risk allocation is fair and aligned with both commercial realities and statutory obligations.

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    Profit Adjustment Formulas: Purpose, Structure and Application

      This practice note outlines the purpose, principles, and application of profit adjustment formulas used to vary profit outcomes or adjust contract prices in response to cost performance and changing economic conditions. It distinguishes direct profit-sharing mechanisms from indirect price adjustment mechanisms, such as Contract Price Adjustment Provisions (CPAP), and highlights key drafting and application considerations to support fair and consistent outcomes.

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      Negotiating Early Termination Rights in Service Agreements

        This practice note outlines key best practices for negotiating early termination clauses in service agreements. It aims to help parties balance flexibility and certainty while managing risk, business continuity, financial consequences, and post-termination obligations. Because enforceability and remedies may vary by governing law, the note should be adapted to the relevant jurisdiction and transaction context.

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