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Conflicts of interest
Posted October 16th, 2007 by DCT
Notable points
In the Pactix provision on conflicts of interest:
- Acquiring-Party does not have an express right to terminate if a conflict of interest arises. If Acquiring-Party wants this, it should negotiate to include a termination-for-convenience clause.
- Provider only represents (i.e., it doesn’t warrant) that it has no conflicts.
Heads-up: Advance notification of future conflicts
An optional clause requires Provider to notify Acquiring-Party in advance if it proposes to provide goods to, or perform services for, another person, where doing so might conflict, directly or indirectly, with the interests of Acquiring-Party. This obligation might be a significant burden on Provider.