Business contracts often include terms that allow parties to get out of deals early, or require certain events to take place before the parties are required to act.  These terms can make great business sense as long as these conditions are understood and remembered once the contract is signed.

One local example will generate  numerous contracts with these terms.  It was announced earlier month that a new NFL ready stadium is going to be built in the Los Angeles area.  If built, it will be a huge boon to the local economy and businesses will be lining up to get their piece of the pie.

However, there is still a large amount of red tape to cut through before the stadium can be built and games played.

With the vision of this new multi-billion dollar facility on the possible horizon, local and national businesses are preparing to capitalize. Having 80,000 consumers coming to the area each week during the football season brings with opportunity for restaurants, shops, entertainment, and a variety of other businesses.

Some smart entrepreneurs and businesses are already preparing for this best-case scenario by entering into contracts for commercial rental space, advertising, etc.  However, these savvy businesspeople do not want to take a gamble on the stadium deal falling apart leaving the business with financial obligation that will not pay off without the stadium and fans.

These fast-acting business people are likely going to seek terms in their contracts that allow them to void their proposed contracts if the stadium does not get built within a certain timeframe.  This gives businesses an agreement that will be enforced only if the stadium is built.  Basically these contracts will say “if the stadium is built by a certain date, then my company will do X, Y, and Z, and if the stadium is not built by the certain date, my company does not have to do anything.”

These principals should also be applied to setting up officiating camps as well.  One common condition used in some contracts with venues utilized in lease agreements with facilities used in clinics is a condition allowing the clinic to cancel the deal if the clinic does not get a certain amount of registrants.  This allows the organization conducting the clinic to avoid being forced to conduct a clinic that would lose money.

Take a look at the contracts you have right now for your clinics and other businesses, and be sure to note the conditions in each of them.  You can save money and you and yourself stress just by understanding these conditions and recognizing when they will apply.  If you are negotiating a contract, be sure to try and get conditions favorable for your interest

Of course, if you need some help figuring these out – contact us and we will be glad to help you figure things out!