| Commentary

156.1 The purpose of standard terms

| Commentary

156 General drafting issues on standard terms

156.1 The purpose of standard terms

Standard terms fulfil two main functions.

First of all, they set out the contractual apparatus, that is, exactly how the contract is intended to operate, and in particular who does what and when. As part of this, they should describe clearly the parties’ respective duties, including any limitations on those duties, together with any special promises those parties are making about their performance. In other words, this part of the standard terms explains what will happen when all goes well.

The second function of standard terms is to allocate risk

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