contracts Archives - Page 3 of 7

June 28, 2017

What is an Exclusive License Agreement?

The exclusivity of an agreement is an important part of negotiating any business deal and plays a large role in licensing agreements and distributorship agreements. Making a distributorship agreement exclusive means that only the distributor with the exclusive right may sell the products. Similarly, an exclusive license means that only the licensee can use the license. This exclusivity provides a major business advantage, ensuring that the exclusive distributor or licensee will not face any competition from other companies distributing the same product or using the same license.

June 6, 2017

What is an Undertaking Not to Compete?

An undertaking not to compete is a clause often used in commercial contracts in industries where competition is fierce. The clause aims to prevent a partner company or employee from engaging in business with a competitor during the term of the contract. In some cases, the undertaking not to compete, also sometimes called a non-compete clause, may prevent competition even after the contract ends for a set period of time.

March 17, 2017

What is an Indemnity clause?

An indemnity clause can be a powerful tool to control costs and manage risk when licensing technology. An indemnity clause, at its most powerful, can completely shield one party from liability, forcing the other party to cover all potential risk stemming from the agreement. However, more commonly, it will be used to cover specific areas of risk such as potential damage caused by use of the licensed technology or claims by 3rd parties for IP infringement.

February 27, 2017

What does the Incoterm FOB mean?

When goods are shipped with the condition Free on Board (FOB), the seller is responsible for preparing the goods for shipping and loading them onto the ship for transport. The buyer is then responsible for paying the cost of transportation and any fees imposed at the eventual port of call. Insurance, if necessary, is also the buyer’s responsibility, as the risk of loss transfers to the buyer upon the seller loading the goods onto the transport. The term FOB can only be used in situations where goods are being shipped by land or sea.