Understanding Contract analysis and review
Contract Analysis is a process of understanding what is within your contracts. The main purpose behind trying to understand the ingredients of any contract is to see what are your organization’s obligations with respect to the contract being analyzed and what are the associated risks for the organization in the event of failing to perform these obligations.
Most organizations prefer this as Contract Review, and this is most likely performed by either an external legal counsel or using in-house legal teams. The normal contract review process happens either when you are authoring a fresh contract with your customer, supplier, or vendor or when you are accepting the third-party paper. In both these cases the reason for the review is to figure out if any of the contract clauses are deviating from the standard templates and if yes how much are they deviating and if that is reasonably acceptable.
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