Contract goals: Overview, definition, and example
What are contract goals?
Contract goals refer to the specific objectives or outcomes that the parties involved in a contract aim to achieve through their agreement. These goals outline what both parties want to accomplish, whether it’s the delivery of goods, completion of services, or achieving certain business milestones. Contract goals provide direction and purpose to the agreement, helping to ensure that all parties are aligned on what is expected and what constitutes successful performance.
For example, in a service agreement, the contract goals might include completing a project on time, staying within budget, and meeting specific quality standards.
Why are contract goals important?
Contract goals are important because they set clear expectations and guide the performance of all parties involved. They help define success and provide a measurable way to assess whether the contract has been fulfilled. By clearly stating the goals upfront, both parties can avoid misunderstandings, reduce the potential for disputes, and ensure that they are working towards common objectives. Additionally, having defined contract goals helps keep the parties accountable and allows for easy tracking of progress throughout the contract term.
For businesses, well-defined goals can improve project management, ensure the timely delivery of services or products, and help manage relationships with clients, vendors, or partners. For individuals, it clarifies their roles and responsibilities in achieving those goals.
Understanding contract goals through an example
Imagine a company hires a marketing agency to improve its online presence. The contract’s goals might include increasing website traffic by 20%, growing social media followers by 15%, and improving conversion rates by 10% within six months. These goals are clearly defined and measurable, helping both the company and the agency understand what is expected and how success will be determined.
In another example, a contractor agrees to build a house for a client. The contract goals might include completing the construction within 12 months, meeting specific design specifications, and staying within the agreed-upon budget. The contractor and the client will both be working towards these goals to ensure the project is successful.
Example of contract goals clause
Here’s how a contract goals clause might look in an agreement:
“The Parties agree that the primary goals of this Agreement are to complete the development of the software application by the agreed deadline of [date], ensure that the application meets the specified functionality outlined in Section 3, and remain within the total project budget of $X. Performance will be evaluated based on the timely completion of milestones, quality of the deliverables, and adherence to the budget.”
Conclusion
Contract goals are the specific objectives that the parties involved in a contract agree to achieve. By clearly defining these goals, both parties understand what success looks like and how to measure progress. Having well-established contract goals helps ensure that everyone is aligned, accountable, and working towards the same objectives, which is crucial for a successful partnership or project.
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.