Don’t Let Your Counterparties Go Shopping at Target When They Review Your Contract
If you’re like me, you can’t go into Target and get just 1 thing.
A few days ago, I went into Target to buy socks.
I ended up buying socks…and crayons for my kids, a new set of measuring cups, and 3 of those double-boxes of toothpaste.
That’s the Target effect.
And it works the same with contract redlines.
Most counterparties don’t stop at just 1 redline. No, once they start redlining, they don’t hold back.
They’re in Redline Mode.
“I made a few redlines,” they’ll think, “so I might as well make just a few more.”
And before you know it, a few simple edits have turned your document red.
This is why it’s so helpful to nail the big stuff:
If you can make these clauses reasonably acceptable from the first draft, some counterparties may skip the redlines entirely.
They won’t need to buy anything at Target.
But if you make these clauses too heavy-handed, now your counterparties have a reason to go shopping.
And once they start shopping, who knows when they’ll stop?
A few days ago, I went into Target to buy socks.
I ended up buying socks…and crayons for my kids, a new set of measuring cups, and 3 of those double-boxes of toothpaste.
That’s the Target effect.
And it works the same with contract redlines.
Most counterparties don’t stop at just 1 redline. No, once they start redlining, they don’t hold back.
They’re in Redline Mode.
“I made a few redlines,” they’ll think, “so I might as well make just a few more.”
And before you know it, a few simple edits have turned your document red.
This is why it’s so helpful to nail the big stuff:
- Limitations of Liability
- Confidentiality
- Indemnification
- Termination
If you can make these clauses reasonably acceptable from the first draft, some counterparties may skip the redlines entirely.
They won’t need to buy anything at Target.
But if you make these clauses too heavy-handed, now your counterparties have a reason to go shopping.
And once they start shopping, who knows when they’ll stop?