This clause creates a regular meeting (usually monthly or quarterly) between representatives from both parties to discuss how the contract is working, resolve disputes, and make decisions about the relationship. For example, a committee might include your procurement manager and the supplier's account manager. This matters because it creates a structured way to communicate and solve problems before they become serious legal disputes. It's a low-risk clause because it's mainly about communication and cooperation, not about money or legal liability.
Ensure the clause specifies who attends (people with real decision-making authority, not just junior staff), how often you meet, and what happens if issues can't be resolved at the committee level (for example, escalation to senior management). Also confirm that committee meetings are confidential and that decisions made there don't override the written contract terms unless both parties formally agree in writing.
Frequently Asked Questions
What does this clause mean in simple terms?
This clause creates a regular meeting (usually monthly or quarterly) between representatives from both parties to discuss how the contract is working, resolve disputes, and make decisions about the relationship.
Why should I care about this clause?
For example, a committee might include your procurement manager and the supplier's account manager.
What are my options?
This matters because it creates a structured way to communicate and solve problems before they become serious legal disputes.
How does this affect small businesses?
It's a low-risk clause because it's mainly about communication and cooperation, not about money or legal liability.