Merit Event - IT Contracts

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“Most IT legal disputes could be avoided with a little more research before contracts are signed” say legal experts. The vast majority of these disputes arise from the misinterpretation of what a company expects and what it actually receives due to a ‘rush to market’ business culture.

MERIT, in association with UK Online, has invited Tier One Ltd. and DLA Solicitors to present a seminar on an issue that has been highlighted recently with a number of high profile actions. The seminar will concentrate on;

• The value of having a good contract.
•The Service Triangle
• Relationship Management
• Service Management

The seminar would be particularly useful for IT managers with procurement responsibilities and buyers/contract managers with responsibilities for IT procurement.

If you would like to reserve a place(s) at this event please complete and return the form overleaf or book on-line via the events section at www.merit.org.uk.

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Merit Event - IT Contracts

  1. 1. IT Contracts CONTRACTUAL ISSUES - INCLUDING LIMITS OF LIABILITY AND WARRANTIES 10 October 2001
  2. 2. DLA – IT LAW FIRM OF THE YEAR Insider's Guides to IT & Telecoms 2000 <ul><li>Peter Brook </li></ul><ul><li>Associate </li></ul><ul><li>DLA </li></ul><ul><li>India Buildings </li></ul><ul><li>Water Street </li></ul><ul><li>Liverpool </li></ul><ul><li>L2 ONH </li></ul><ul><li>Tel: 0151 237 4782 </li></ul><ul><li>Fax: 0151 237 4890 </li></ul><ul><li>E-mail: </li></ul><ul><li>[email_address] </li></ul><ul><li>David Worrall </li></ul><ul><li>Solicitor </li></ul><ul><li>DLA </li></ul><ul><li>India Buildings </li></ul><ul><li>Water Street </li></ul><ul><li>Liverpool </li></ul><ul><li>L2 ONH </li></ul><ul><li>Tel: 0151 237 4739 </li></ul><ul><li>Fax: 0151 237 4890 </li></ul><ul><li>E-mail: </li></ul><ul><li>[email_address] </li></ul>
  3. 3. Problem? What Problem? <ul><li>In a 5 year period: </li></ul><ul><li>73% had problems with their computer system </li></ul><ul><li>35% had system crashes </li></ul><ul><li>60% had to to call back their suppliers </li></ul>
  4. 4. Common Problems <ul><li>Parties don't appreciate the complexity </li></ul><ul><li>Users fail to produce a proper specification </li></ul><ul><li>Vendors oversell </li></ul><ul><li>Requirements change during implemenation </li></ul>
  5. 5. Contract or not to Contract <ul><li>Contracting or not at the wrong time can cause problems </li></ul><ul><li>A contract is created </li></ul><ul><ul><li>If an offer </li></ul></ul><ul><ul><li>Unconditionally accepted </li></ul></ul><ul><ul><li>Consideration </li></ul></ul><ul><ul><li>Intention </li></ul></ul>
  6. 6. Using your Lawyer Effectively <ul><li>Early Instructions </li></ul><ul><li>Need not be expensive </li></ul><ul><li>Tender assessment </li></ul>
  7. 7. Check What is in Writing <ul><li>Question the contract </li></ul><ul><li>Tidy doesn't mean correct </li></ul><ul><li>Watch for entire agreement clauses </li></ul>
  8. 8. What should go into the contract? <ul><li>Detail </li></ul><ul><li>Certainty </li></ul><ul><li>Looking ahead </li></ul>
  9. 9. Parties <ul><li>Who should sign? </li></ul><ul><li>Associated companies? </li></ul>
  10. 10. Rights in Software <ul><li>Ownership? </li></ul><ul><li>Licence Terms? </li></ul><ul><li>Assignability </li></ul><ul><li>Restrictions </li></ul>
  11. 11. Specification <ul><li>As much thought and details as possible – worthwhile effort </li></ul><ul><li>Ensure warranties are given </li></ul>
  12. 12. Staff <ul><li>Ensure key individuals are named </li></ul>
  13. 13. Timetable <ul><li>Agree one!! </li></ul><ul><li>Specify reduction in price if late? </li></ul>
  14. 14. Staged Payments <ul><li>Use staged payments as an incentive </li></ul>
  15. 15. Quality <ul><li>Warranties as to quality, skill etc </li></ul><ul><li>Misuse of third party's rights </li></ul>
  16. 16. Maintenance <ul><li>Agree at the outset </li></ul><ul><li>As much detail as possible </li></ul><ul><li>Service levels, duration etc. </li></ul>
  17. 17. Escrow <ul><li>Place source code with independent third party (&quot;Escrow&quot;) </li></ul><ul><li>Trigger release on e.g. insolvency </li></ul>
  18. 18. DLA – IT LAW FIRM OF THE YEAR Insider's Guides to IT & Telecoms 2000 <ul><li>Peter Brook </li></ul><ul><li>Associate </li></ul><ul><li>DLA </li></ul><ul><li>India Buildings </li></ul><ul><li>Water Street </li></ul><ul><li>Liverpool </li></ul><ul><li>L2 ONH </li></ul><ul><li>Tel: 0151 237 4782 </li></ul><ul><li>Fax: 0151 237 4890 </li></ul><ul><li>E-mail: </li></ul><ul><li>[email_address] </li></ul><ul><li>David Worrall </li></ul><ul><li>Solicitor </li></ul><ul><li>DLA </li></ul><ul><li>India Buildings </li></ul><ul><li>Water Street </li></ul><ul><li>Liverpool </li></ul><ul><li>L2 ONH </li></ul><ul><li>Tel: 0151 237 4739 </li></ul><ul><li>Fax: 0151 237 4890 </li></ul><ul><li>E-mail: </li></ul><ul><li>[email_address] </li></ul>

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