A Research Collaboration Agreement outlines cooperative research activities between institutions or companies. This playbook discusses IP ownership, publication rights, and funding obligations.
Why This Matters: Overbroad or undefined warranties can extend liability and lead to higher breach claims.
Negotiation strategy
If you're the Institution A:
Ensure that warranties are specific and limited to necessary representations to reduce liability exposure. Negotiate for clear definitions and timeframes to avoid ambiguity.
If you're the Institution B:
Limit the scope and duration of warranties to minimize potential liability. Ensure compliance with industry standards while avoiding overcommitment.
Essential elements
1
Product Quality Assurance
Guarantee of defect-free products.
2
Regulatory Compliance
Adherence to applicable laws.
3
Performance Standards
Meet specified performance criteria.
Action framework
ACCEPT
Propose edits when warranties are too broad or lack specificity.
EDIT
Reject clauses that impose unreasonable liability or lack clear terms.
ADD
Add language to specify warranty duration and compliance requirements.
PRO TIP
Always align warranties with industry standards to protect against excessive liability.
Example clauses
FAVORABLE
Warranty of Product Quality
"The Seller warrants that the products supplied under this Agreement shall be free from defects in material and workmanship and shall conform to the specifications set forth in the attached Schedule A for a period of twelve (12) months from the date of delivery."
NEUTRAL
Standard Warranty Clause
"The Seller provides a standard warranty for the products as per industry norms."
UNFAVORABLE
Overbroad Warranty
"The Seller warrants all aspects of the product indefinitely without limitation."
Fallbacks
High-Risk Projects
In high-risk projects, warranties should be more stringent to cover potential liabilities. Ensure comprehensive coverage for all critical components.
International Transactions
For international deals, ensure warranties comply with local laws and consider additional clauses for cross-border compliance.
New Product Launches
For new products, warranties may need to be more flexible to account for unforeseen issues. Consider shorter durations with options for extension.
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