Third-Party Contract Due Diligence in Outsourcing Agreements
For the company that is outsourcing part of its business functions to a third party, reviewing existing third-party contracts for certain key terms is an important part of the outsourcing process, points out Morgan Lewis in a blog post.
Authors Barbara Murphy and Kevin P. Dermody discuss typical terms to focus on when reviewing the third-party contracts: contract expiration date/auto renewal provisions, third-party use rights and restrictions, assignment provisions, pre-paid expenses/annual fees, and termination rights/fees.