A company that has always sold widgets can be expected to rely on time-tested terms of sale/purchase in its contracts. But, according to a post in the Tech & Sourcing @ Morgan Lewis blog, a company that now uses an online portal or provides other electronic access to counterparties should update those trusty standard terms.
“Have you been utilizing e-commerce to significantly improve convenience and efficiency? If an online platform were your product, rather than just a logistical tool, you would carefully craft end user terms that protect your rights and limit your liabilities associated with the platform,” write Barbara Murphy Melby and A. Benjamin Klaber.
The authors discuss the steps to take to make sure standard contract terms will more closely reflect the hybrid physical/digital nature of transactions and commercial relationships.