Pre-contract negotiations
Heads of Agreement
Lock-in agreements
Confidentiality
Representations and misrepresentation
Long term supply agreements
Learning Outcomes:
By the end of this session you will be able to:
Identify potential legal problems for parties arising out of pre-contract discussions and
negotiations.
Explain the legal issues which the parties should be aware of when preparing heads of
terms, a lock-in agreement or a confidentiality arrangement.
Tailor a precedent supply agreement to reflect the particular circumstances of a proposed
supply arrangement.
Session Activities:
Apply your understanding of contract formation, confidentiality and misrepresentation to a
practical example.
Discuss the most appropriate precedent to use for a particular proposed supply
agreement.
Tailor a precedent appropriately for use in relation to a particular proposed supply
agreement.
Materials Attached:
Pre-session Task, consisting of email from supervisor attaching (i) email from client (ii)
heads of terms and (iii) standard terms and conditions of supply.
Materials provided in Session:
In-session Task, consisting of further email from supervisor attaching suggested
precedent supply agreement.
Suggested answer setting out first draft of supply agreement.
Preparation for Session:
Read Chapters 3, 5 and 7 and Chapter 24 paragraphs 24.1 and 24.2 of the Commercial
manual.
Prepare a detailed written answer to Part 1 of the Pre-session Task. You will need to
refer to the reading and think practically to come up with solutions to the client’s
problems. You must be able to justify your conclusions by reference to authorities.
Locate an appropriate precedent document from the Encyclopaedia of Forms and
Precedents as required by Part 2 of the Pre-session Task. Make a note of the
reference number and bring a hard copy with you to the workshop. You will need
it for the workshop.
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