This clause requires both parties to meet regularly (usually quarterly or annually) to review performance, discuss problems, and plan ahead. It matters because it creates a formal process to catch issues early before they become disputes, and it shows both parties are committed to making the relationship work. However, it's only useful if people actually attend and come prepared; many contracts have this clause but the meetings never happen or become rubber stamps. The legal principle is "mitigation"—if something goes wrong, you have a duty to try to fix it rather than just claim damages, and these meetings help you do that.
Include this clause if the relationship is long-term or complex, but make it specific: say who must attend (e.g., "senior manager from each side"), how often (quarterly is typical), and what must be discussed (performance metrics, upcoming changes, issues log). Don't just add it to the contract and forget it—actually schedule the meetings and set a simple agenda in advance. If the other party stops showing up or sends junior staff who can't make decisions, that's a red flag that they don't take the relationship seriously. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires both parties to meet regularly (usually quarterly or annually) to review performance, discuss problems, and plan ahead.
Why should I care about this clause?
It matters because it creates a formal process to catch issues early before they become disputes, and it shows both parties are committed to making the relationship work.
What are my options?
However, it's only useful if people actually attend and come prepared; many contracts have this clause but the meetings never happen or become rubber stamps.
How does this affect small businesses?
The legal principle is "mitigation"—if something goes wrong, you have a duty to try to fix it rather than just claim damages, and these meetings help you do that.