Legal Brief: Common-Sense Updates to Customer Contracts

February 15, 2024
Security Business Magazine

Types : Bylined Articles

Consider adding these provisions to protect your company against potentially frivolous lawsuits

Security integrators with even a minimum amount of sophistication use written contracts with their customers. Those with more sophistication use better contracts. Those with even more sophistication regularly review and update their contracts – particularly with the help of counsel.

Contracts in the security industry usually have some standard terms – such as a description of the services, the price to be paid, the equipment to be supplied, etc. They also should contain some key limiting conditions – such as a limitation of liability, indemnification, waiver of subrogation, forum selection, choice of law, waiver of jury trial, etc.

The quality and enforceability of these limiting conditions can often be the difference between a successful defense in litigation and a protracted, expensive, and perhaps unsuccessful defense. Therefore, your company should hire capable counsel and conduct regular reviews of your contract. Your business must evolve to succeed. So, must your contract.

While attention must be paid to the standard terms and the limiting conditions, there are other things that your company can do with its contract to help take it to the next level. Being creative and thoughtful with your contract may make a real difference someday if you are sued.