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The Importance Of Follow-Up And Oversight On Contract Provisions

Some describe provisions as the “building blocks” of contracts, and they make up the foundation of successful agreements. Without a foundation of effective provisions, the contract may fall apart – and both parties may encounter various legal issues as a result. Due to their importance, it is vital to approach contract provisions with proper oversight. Follow-up is crucial, and this process occurs after the parties have already signed their contract. Why are follow-up and oversight so important when it comes to contract provisions? How do these steps occur? These are questions parties may wish to ask during consultations with experienced business litigation lawyers in New York. A conversation with Schwab & Gasparini could prove productive. Business representatives in Syracuse can call (315) 422-1333 for further guidance, while those in Albany may dial (518) 591-4664. The phone number for our White Plains office is (914) 304-4353, and those in Hudson Valley can call (914) 304-4353.

What Is Follow-Up in Contract Law?

Follow-up is the process of ensuring the proper functioning of a contract, and it occurs after parties have already signed a contract. Those unfamiliar with contract law might assume that once the document has been signed, there is no going back. As a result, parties may wonder whether there is any real point in following up on a contract that is already “set in stone.”  However, proper follow-up can hold parties accountable. If someone is not adhering to their contractual obligations, it is best to address this issue as soon as possible. 

Sometimes, the individual or company is not even aware that they are violating the terms of their contract. This often stems from a poor understanding of the provisions. If these violations occur early in the business relationship and the damage is limited, further education can clear up misunderstandings and ensure contractual compliance in the future. If these violations continue to occur over a long period without anyone noticing, however, they may lead to significant losses and damages. In this situation, it may be necessary to take legal action to recover the losses rather than simply re-educate the offending party and “start fresh.” This is just one example of why proper oversight is so important in contract law. 

What Is the Difference Between Oversight and Follow-Up?

In the context of contract provisions, the terms “oversight” and “follow-up” are interchangeable. One might argue that oversight is a more general term, referring more to the passive monitoring of contract compliance rather than active intervention. In contrast, follow-up implies more direct steps, including addressing specific concerns and issues. Follow-up might also involve active communication with parties, perhaps educating them about unclear contract provisions. 

These subtle differences mean that oversight is the first step in identifying issues with contract provisions, while follow-up represents the next stage of providing solutions. Terms like “contract management” or “contract monitoring” also refer to the same overall process. The National Contract Management Association (NCMA) states that contract management involves oversight of deliverables, timelines, contract provisions, and conditions. 

What Happens if You Skip Contract Oversight?

If parties neglect proper oversight, they may encounter various issues. Aside from losses and damages stemming from violations, failure to adhere to contract provisions may create an entirely new agreement. In other words, courts may not recognize contract provisions that are continuously violated over a considerable period of time. The only thing that may matter to a judge is the actual behavior of the parties – and not what the contract provisions actually state. This pattern of behavior may create a new, unwritten contract in the eyes of the court – and the contract provisions may become irrelevant. 

This type of situation can occur in many business relationships, including landlord/tenant agreements and commercial lease agreements. For example, if a landlord continues to accept late or insufficient rent payments without enforcing the contract provisions, courts may determine that these payments represent the “new normal.” Lawyers sometimes refer to this as an “implied contract,” and The Law Dictionary refers to this as an “agreement that has not been put into words.” An experienced contract lawyer at Schwab & Gasparini could help parties avoid these outcomes with proper oversight of contract provisions.  

What Happens if I Notice Contract Violations During Oversight?

If oversight uncovers evidence of breaches or violations of contract provisions, the next step is to resolve the conflict. Most parties want to avoid litigation when addressing these issues, since going to court is often expensive, time-consuming, and stressful. As a result, the most logical course of action is usually private negotiation. During dispute resolution, parties may adhere to standard processes like arbitration or mediation. Both sets of lawyers could be present during these negotiations, plus neutral third parties like arbitrators or mediators. 

Often, the contract provisions describe the specific process for dispute resolution. Participation in this process may be mandatory, and parties may have agreed to engage when they signed the contract. Often, parties successfully resolve their differences without ever going to court. For example, one party might pay a financial penalty for violating certain contract provisions. These penalties not only help aggrieved parties cover their losses, but also discourage further violations. 

How Do I Detect Contract Violations During Oversight?

Violations of contract provisions can easily fall under the radar. Examples include “non-material breaches,” which can occur even if a party fulfilled the underlying purpose of the agreement. These violations can be difficult to detect because they may not lead to any noticeable losses or damages. Proper oversight can help parties identify these breaches by requiring the exchange of extensive documentation. An experienced contract lawyer can review these documents and identify potential issues.

Learn More About Contract Provisions With Schwab & Gasparini

Whether companies are in the process of creating new contracts or revising existing ones, legal assistance may be helpful. That being said, the varying nature of business contracts could make online research too vague and broad to guide effective action. A business litigation lawyer in New York could provide more targeted guidance, allowing companies to address their unique concerns and goals when creating and revising contracts. Consider speaking with Schwab & Gasparini to discuss these goals and concerns in more detail. We have offices in many locations throughout the Empire State, including Syracuse (315) 422-1333, Albany (518) 591-4664, White Plains (914) 304-4353, and Hudson Valley (914) 304-4353.

Mon Apr 14 2025, 12:00am