What Should Parties to a Contract Be Aware of When Negotiating Exclusive Contracts?What should parties to a contract be aware of when negotiating exclusive contracts?An exclusive contract refers to a contract in which a party agrees  to supply  goods  or services to another party and in exchange  the other party expressly  promises  to obtain the goods or services exclusively from the first party. Exclusive contract also refers to an arrangement where one firm agrees to do business with another firm and the other firm would not be allowed to do business with another firm apart from the initial firm. Parties to an exclusive contract should be aware of the following during negotiations. The scope of serviceParties to an exclusive contract need to be aware of the extent to which the other party would offer the services agreed upon in the contract.  The scope of service should be well defined and each party should know how the scope will be maintained currently and in the future. Availability of resourcesParties need to be aware if the other party has the resources need for the performances of the duties obligated to them as per the terms of the contract. This includes the extent to which the parties would be bounded by the exclusive contract.
The compensation structure.This is a very significant component in an exclusive contract negotiation. Parties need to know how compensation would be based on in any incase of termination of the contract in case it happens later on. For instance, the compensation structure can be based on the part of the productivity of the party affected. Parties also need to be aware of the benefits and the remedies that can be available to them in case the other party breach the terms of the contract.The obligation coverage.Parties need to states out the obligations expected from each other during the negation of an exclusive contract. This will enable them to effectively understand the duties expected from them as per the contract they intend to enter into. For instance, if it is an employment contract, the employee needs to know what they are required to offer as service and the employer need to specify the schedule coverage for the employee to be aware.
4.2.4 Determination of Company’s Premium by Party
An entry in the premium table makes it easier for parties to know which party the employer is offering the employee. This will help the parties to distinguish the parties who are offering the employee, as well as identify which are on equal footing with other parties, a good deal more often than they otherwise would have. This will also help firms choose, at a general business level, which parties to pay, and which party is not the party offering the employee.
In the entry below, we have made a distinction between a company’s “premium” by offering the employee a certain number of perks while taking into consideration the company’s “premium” by taking into account that the company’s base contract salary is, on average, 2% of its base salary.
The above table has made possible the use of formulas that define a person’s premium by the company. Here are all of the following:
1) Total
Amount
of Perquisites
in the company Base
Contract Salary
(GPA) per
Hour (in gps)
(In gps) (in years)
(in years) Total
Amount of Perquisites
in the company Base
Contract
(year)
(in years)
Perquisites, GPA
(in years) – (in years)
(in years) Average
Premium
Benefit
(GPA) – (in years)
(in years)
(in years) Average
Premium
Benefit
(GPA) – (in years)
(in years)
The table below shows all of the following:
1) Total
Amount
of Perquisites
in the company Base
Contract Salary
(GPA) per
Hour (in gps)
GPA
(in years)
(in years) Average
Premium
Benefit
(GPA) – (in years)
2) Total
Amount
of Perquisites
in the company Base
Contract Salary
(GPA) per
Hour (in gps)
GPA
(in years)
(in years) Average
Premium
Benefit
(GPA) – (in generations)
(in generations)
(in generations) – (in generations) Average
Premium
Benefit
(GPA) – (in generations)
Source: Business Development Organisation (BDO)’s 2015 Financial Statements, released April 2, 2015
4.2.5 Subquisites
The following is the total number of perks that an employee has. The table below shows some of the following:
• Annual
Cost of the Office (approx)
(taxpayers under 65)
(referral of employees under pension plan)
(taxpayers under 100)