Have you ever had wills drafted or met with your financial advisor or insurance agent, and at the end of the meeting, he or she said, “Now we need to revisit this every couple of year to make sure things haven’t changed.”? That same approach should be followed in your other legal and business relationships.
Relationships and circumstances can change for a variety of reasons. The law changes. One party is faced with financial or other business hardships. One party transforms from a start-up business that is just happy to have a contract to an industry powerhouse. An employee right out of school becomes a partner in the business. Territorial capabilities or needs change. Etc. When these changes happen, it is critically important that the parties’ contract(s) be reviewed, and where appropriate, revised. Otherwise, that ever-important “meeting of the minds” that we attorneys talk about may no longer exist – and that’s a recipe for trouble.
As I’ve said before, in negotiating and drafting agreements, we should attempt to anticipate the various ways that the parties’ relationship may change over time, and where possible, include provisions that allow the contract to evolve as well. However, it’s rarely possible to anticipate all of the changes that may occur. For that reason, I recommend a periodic revisit of your contracts. The old saying, “If it’s not broken, don’t fix it,” is absolutely true; but your contracts may be broken now simply because they don’t fit your evolving business relationship. Don’t let that be the case – remember the other saying, “An ounce of prevention is worth a pound of cure.” Review your contracts and relationships periodically as part of your preventive maintenance.