Question

Discuss the importance of boilerplate contract terms and conditions as part of the contract. How do boilerplate terms and conditions protect the purchaser?

Answer 1

In most of corporate and commercial contracts, boilerplate terms and conditions serve an important purpose in clarifying the relationship between the parties and spelling out any situations that otherwise would not be addressed in the operative section of the agreement. They are used for efficiency and to increase standardization in the contract’s structure and language. These are important to address a range of things such as what happens if a document is declared unenforceable, how disputes will be resolved between two parties and, which laws govern the contract, etc. The purpose of boilerplate’s terms and conditions is to protect the interest of all parties that sign the contract.

Boilerplate terms and conditions protect the purchaser for disputes and losses. It increases the efficiency, cost reduces and experience increases. They provide buyer, the bargaining power with seller. It protects the rights and powers of purchaser. In case of any losses or breach of the contract, it helps to get the compensation for losses. With the help of its assignment clause, the right of a party to transfer any or all of it’s rights and obligations to a third party. Force majeure clause of boilerplate protects the purchaser when any natural disaster takes place. Merger clause prevents the purchaser from claiming that part of the agreement was left out of the written contract and should still apply. In limitation of damage clause, the liability of purchaser is sometimes limited by the value of each purchase order.