CONTRACT NEGOTIATION
Contracts are Meant to be Negotiated
Doing so prevents you from being blindsided.
Contract negotiation and development may not be the sexiest part of operating a business, but it is one of the most important. Often, businesses do not have formalized processes for reviewing, negotiating and developing them. Instead, several individuals in several different departments are given free rein to sign anything, resulting in unnecessary exposure to the company.
It is important to review and analyze contracts with key third parties and uncover opportunities for further negotiation or clarification. Being proactive ensures you are not assuming unnecessary liabilities in the business relationship, and that prospective business partners are in fact qualified to do business with you.
Your Preventive Lawyer can help develop your own set of “pro-company” contracts which can be tailored across multiple business functions and deployed proactively, instead of simply responding to the one-sided forms from your business partners. The “boilerplate” provisions in your business’ contracts should also be one-sided, but this time in your company’s favor.
DIY Can Lead to RIP
Unrealistic Obligations
Signing agreements without fully understanding the terms in advance means you may have unwittingly assumed obligations that can be detrimental to your business.
Boilerplate Language
What appears to be “boilerplate” within a contract is often intentional language specifically designed to benefit one party. Failing to understand and negotiate items within the fine print can blindside you and leave you exposed.
Informal Processes
Having multiple people, across multiple departments, reviewing and signing contracts on behalf of your business can be a recipe for disaster, holding your business hostage to the array of demands accepted from your counterparts.
Avoid Unnecessary Exposure
Take control of your contracting process with business-forward solutions.
By taking ownership in the contracting process and implementing company-wide standards, you are putting your business in a position to thrive by avoiding unnecessary exposure that comes from blindly signing agreements.
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Uncover potential landmines in contracts with current and prospective business partners and develop strategies to minimize exposure.
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Prepare a standard set of contracts favorable to your business, which can then be tailored and used in different settings.
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Identify and train appropriate personnel to own the contracting process for your business to level the playing field with prospective business partners.
The 5 Pillars of Preventive Law
Contracts
Understand, negotiate and develop your contracting process to protect your business’ interests.
Insurance and Litigation Management
Uncover hidden loopholes and manage litigation strategies to ensure they’re working in your favor.
Due Diligence
Conduct adequate due diligence to uncover and analyze potential issues prior to closing business transactions.
Compliance
Create a culture of compliance from development, through implementation and training.
Business Governance
Limit personal liability by proactively governing your business entity in accordance with the law.
