Communications: Overview, definition and example
What is communications?
Communications refer to the process of exchanging information, ideas, or messages between parties, either verbally, in writing, or through other forms of media. In the context of contracts, communications refer to the formal and informal exchanges between the parties involved regarding the agreement. This can include notifications, approvals, amendments, or updates related to the contract’s execution. Clear communication ensures that all parties are on the same page and that any necessary actions or decisions are made in a timely and transparent manner.
Contracts often specify the methods and procedures for communication, such as the required format (written, email, etc.), the recipients of certain communications, and the timing for giving notice or requesting approvals.
Why are communications important?
Effective communication is crucial because it helps prevent misunderstandings, disputes, and delays in fulfilling contractual obligations. When the terms and conditions of a contract are communicated clearly and promptly, both parties can take timely action to ensure the contract is performed as agreed. Miscommunication or lack of communication can lead to failure to meet deadlines, incomplete deliverables, or even breach of contract.
In legal agreements, communications clauses define how important information should be exchanged, ensuring that any notices, claims, or decisions are legally valid and appropriately documented.
Understanding communications through an example
A company and a supplier enter into a supply agreement, which includes a clause stating that any changes to the order must be communicated in writing via email within 48 hours. The supplier communicates a potential delay in shipment via email, and the company responds within the specified time frame, allowing both parties to address the issue before it impacts the project timeline.
An example of a communications clause
Here’s how a communications clause might appear in a contract:
“All notices, requests, or approvals required or permitted under this Agreement shall be in writing and sent by email to the designated representatives of each Party, as listed in Exhibit A. Any communications regarding amendments or updates to the Agreement must be sent within [Insert Number of Days] days to be considered valid. Communications will be deemed received upon confirmation of delivery to the specified email address.”
Conclusion
Communications are a vital aspect of any contract, ensuring that information is exchanged effectively and in a manner that supports the proper execution of the agreement. By clearly defining communication procedures, parties can avoid misunderstandings and ensure that all relevant information is shared promptly and appropriately. A well-drafted communications clause helps prevent delays, errors, and potential disputes in the performance of the contract.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.