Contractual Issues in Grid

The contractual issues that the various actors in Grid have to face are potentially enormous and endless, considering the spectrum of contracts and the variety of existing applicable national laws. Instead, here we focus on those contracts that, according to the practice so far developed within business law, are more popular and worthy of study, particularly on the international scale.

Contract law must be seen as a source of enablers for companies. The aim of this branch of law is not to limit the possibilities given to undertakings playing in the market, but to regulate their relations, with the ultimate objective of creating a market that is profitable for as many parties as possible. For this reason, every firm that is interested in working in a Grid environment should be aware of some fundamental facts.

First of all, it is impossible to get into a Grid business without establishing relations with other companies. It is clear that no undertaking can have by itself all the skills and resources necessary to implement and manage a complete Grid network. These relations have to be set through contracts, and the choice and the quality of the chosen agreement is of pivotal importance.

Secondly, the contract does not create any opportunity, nor set any objective, rather it is the vehicle through which these goals are realised. The first step to make regards the adoption of a strategy, and when the strategy is (at least) quite clear, it is then possible to dress it with the best agreement. Every lawyer is condemned to be silent in front of managers requests, when the latter do not have any clear idea in mind.

Thirdly, the above considerations for contracts can apply also for liabilities. They exist as a way to regulate trade and business, and a well-structured policy is likely to prevent and avoid many responsibilities in which companies can fail.

Areas of particular interest are:

Outsourcing agreements and other (and similar) related contracts, such as, mainly, Application Service Provider (ASP) agreement and network management services outsourcing. Without any doubt outsourcing represents today a great opportunity for every firm that is willing to reduce its costs and provide the customers with a better service, especially in the IT sector.

Strategic alliances , Joint ventures and other ancillary agreements (such as support service agreements and technology licenses). The right form of involvement between collaborating businesses is crucial to the success of the enterprise. Companies must decide on the level of involvement, the structure of the agreement and the clauses that should be taken into account.

Software contracts and, especially, license agreements . Probably the most relevant for every undertaking that is willing to make business in a Grid environment. Deciding on a licensing scheme ( see comparative table ), how it should be structured and which provisions have to be written are of fundamental importance.

Finally, it should be mentioned that every agreement should be analysed both for the liabilities and the responsibilities that it imposes.

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This material is taken from the document "Legal Report on Contractual and Liability Questions" produced by the BEinGRID project. Please follow the link below for the original document: Legal Report on Contractual and Liability Questions