Contract/Agreement Vetting

Contracts between business partners, such as purchase and sale agreements or joint venture agreements, often involve an element of future compensation based on events that will occur after the contract is in force. These contracts are usually focused on the legal issues involved in the transaction and not on the financial and accounting aspects of how the future compensation will be calculated. That is not to say the formula is not stipulated in the agreement, but rather that the formulas are often complex and the terminology used is ambiguous.