Contract Analysis. Newport Management Corp. Administrative and Research Paper

Contract Analysis. Newport Management Corp. Administrative and CoreLogic Tax Outsourcing Service Agreements - Research Paper Example It is a services agreement entered into between the company and Citi Loan Services. Performance for the servicer, which is Citi Loan Services, on the other hand, is measured against its obligations, stipulated clearly in the contract as well. This includes exclusivity of the engagement on the part of the Servicer, whereas the contract is non-exclusive for the Company (Newport Management Corp.). B. Quality The provisions in general are adequate and provide termination and escape clauses for non-performance as well as for breach of contract terms. Performance quality is measured in terms of compliance with the obligations on both sides. There are representation clauses too, as well as privacy and confidentiality clauses and audit clauses that offer substantial legal protection for both parties in those areas. There is a set period of three years for the contract, and terms for a yearly renewal, as well as termination clauses. The indemnification and arbitration clauses are detailed and comprehensive, and cover many substantial areas of potential dispute. Quality standards for service are also clearly stipulated in the Appendix, Appendix D, giving the servicer concrete metrics with which to gauge the quality of service provided by the Company. There are clauses too that strictly define the terms of indemnification and the limitations on potential liabilities on the part of both parties. (Newport Management Corp.). C. Financial Compliance ' Financial compliance clauses are stipulated under fees, and in the provisions relating to performance and to termination, arbitration, and audit clauses. All these are premised on servicer complying with the financial terms of the agreement, where the Company gets a fixed fee for every processed insurance item. The clauses on arbitration provide another means to further reinforce or to clarify contract terms relating to financial compliance and other matters of interest to both parties (Newport Management Corp.). D. Compliance a nd Risk Management ' The limitation on liability is an express clause that provides a level of risk protection for both parties in the case of legal disputes arising out of the activities of either or both. This is a way for both parties to manage the risks of engaging with one another, together with the clauses on representation. On the other hand, the indemnification, arbitration, confidentiality and privacy as well as security, audit, and standard metrics for measuring performance all reinforce the safety of the undertaking and secure compliance from both parties, while mitigating the risks of harm to both in the event of breach of contract. In all the detailed coverage of these aspects of the contract add to managing the risks of entering into the agreement for Newport and Citi Loans, while providing provisions to make sure that both perform their obligations under it (Newport Management Corp.). II. CoreLogic Tax Outsourcing Service Agreement A. Performance There are few provisi ons for securing the performance of the customer where the customer is in breach of its obligations. There are no explicit clauses that define what the obligations of the customer are under the contract, and where the penalties for non-performance of