“What essential clauses should I include in a contract with suppliers or clients to protect my business?”

Forums
General discussion

Submitted by advnehasharma17 on Sat, 10/18/2025 - 21:20

Thank you for your query.

When entering into a contract with suppliers or clients, it’s important to include certain key clauses to safeguard your business interests. Some essential ones are:

  • Scope of Work / Services: Clearly define the deliverables, timelines, and responsibilities of both parties.
  • Payment Terms: Specify payment schedules, modes, penalties for delay, and conditions for advance or milestone payments.
  • Confidentiality Clause: Protect sensitive business and client information from misuse or disclosure.
  • Intellectual Property Rights: Clearly mention ownership of any IP created or shared during the engagement.
  • Indemnity and Limitation of Liability: Ensure protection against losses arising from the other party’s negligence and cap your liability.
  • Termination Clause: Outline conditions and notice period for termination.
  • Dispute Resolution and Jurisdiction: Include a clear dispute resolution mechanism (like arbitration) and specify jurisdiction—preferably Delhi.
  • Force Majeure: Protects both parties in case of unforeseeable events like natural disasters or government restrictions.

These clauses help in reducing risks, ensuring clarity, and protecting your legal and financial interests.

Best regards,
Neha Sharma
Advocate, Delhi