CONTRACT EXECUTION RISKS

When it comes to complex operations (where performance is multilateral, conditionally structured, and so on) the most delicate phase is contract execution.  

Risk of counterparty, risk of execution, risk of a legal dispute connected with the uncertainty of its outcome, are major obstacles to the economic success of a deal. Further, there are external threats such as interference by third parties and creditor attack.

STRATEGIES TO DE-RISK, SIMPLIFY AND SPEED UP

The winning strategy is the adoption of a contractual execution mechanism able to protect parties from risks from inside (without needing to go to court or resorting to arbitration should they materialize), at the same time blocking risks from outside (so that external interference will generate no consequences on the business).

The most powerful, cost-effective tool to plan and carry out contract execution is the purpose trust (PT). Because of his unparalleled effectiveness, it is increasingly used in business.  

Either you negotiate or sign a contract, TrustLegalPro Associate is of assistance in relation to execution de-risking 

  • neutralization of internal risks
    • agreement implementation
    • obligation fulfillment
    • impossibility of fund misuse
  • neutralization of external risks
    • impediment of third party interferences
    • protection from creditor attacks
  • civil litigation prevention