5 Common Pitfalls in Commercial Contracts

Ambiguity in defining deliverables and responsibilities is the leading cause of "scope creep." Without a precise description of services, businesses often find themselves performing additional work without compensation or facing disputes over what was actually promised.

Often called "Evergreen Clauses," these can lock you into long-term commitments unintentionally. Failure to track notice periods for termination can result in being bound by a contract that no longer serves your business objectives or competitive needs.

Entering a relationship without a clear exit strategy is a significant risk. If things go wrong, you need concrete "Termination for Convenience" or "Termination for Material Breach" provisions to ensure you aren't legally forced to maintain a toxic or failing partnership.

An indemnity clause that does not have a financial ceiling creates unlimited financial risk. You could effectively become an insurer for the other party's losses. Professional review ensures these liabilities are capped and insurable.

Agreeing to foreign laws or a distant court jurisdiction can make legal recourse prohibitively expensive. Accidental agreement to non-UK laws can leave your business navigating unfamiliar legal systems without adequate protection.