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Risk management 101: getting third-party approval of terms and conditions

Tom Fox | August 7, 2018

The Justice Department Evaluation of Corporate Compliance Programs states:

“Appropriate Controls – What was the business rationale for the use of the third parties in question: What mechanisms have existed to ensure that the contract terms specifically described the services to be performed, that the payment terms are appropriate, that the described contractual work is performed, and that compensation is commensurate with the services rendered?” 

It’s a given that companies should incorporate compliance terms and conditions into their contracts with third parties, beginning with a template, which should be used as a starting point for negotiations. The advantages of such a template are several, including: (1) the contract language is tested against real events; (2) the contract language assists the company in managing its compliance risks; (3) the contract language fits into a series of...

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