Chetan N
By Chetan N on August 23, 2022

Tips for Avoiding Common Contract Mistakes

Here are top-10 tips for avoiding common contracting mistakes

  1. Avoid copy-pasting from Google 🔍
    It's so easy to search for a contract or an agreement on Google and copy text verbatim. Were these documents even customised for your business? Are common contractual risks addressed? Do these pass the revenue-recognition tests? 

  2. Collaborate on contracts 💬
    Contracts are meant to be negotiated and agreed upon between parties. Non-negotiable contracts are what these are -- not contracts. Avoid this pitfall.

  3. Use contract play-books ðŸ“”
    Sales has a playbook and so does marketing. Why should Legal be different? Set up contract play-books that are customised for your business.

  4. Talk to customers ðŸŽ™ï¸
    E-mails are passé. Talk to your customers if you want the deal to get done. 
     
  5. Redlining hell ðŸ”´
    I send you a contract, your lawyer sends me a mark-up. It goes on and on until one of the parties gives up. Redlining is not negotiating.
     
  6. Don't ignore the what, when and how â“❔⁉️
    Be clear on what you will be providing (product or a service), when you expect to get paid, and how you will be paid. You'd be surprised on how many contracts ignore this.
     
  7. Don't mess with the lawyers ðŸ’¼
    Lawyers are great at solving complex stuff -- use them to resolve complex issues on contracts. For everything else, use automation.  
     
  8. Use AI and Automation to save time and expense ✴️
    Get all parts of the organisation to use automation and AI tools to save on expense and time, and adds a risk-review layer to your business. Be smart and automate. 
     
  9. Keep tabs on your contracts ðŸ“‘
    You'd be surprised to know that more than 70% of businesses can't find contracts that they signed, or worse, don't know that they contracts expired. Be smart and get an intelligent repository that does all of this.
     
  10. Your business runs 24/7, globally. Get the right contracting tools to support your growing business. ðŸ“ˆðŸ› ï¸
    Get the right legal infrastructure to support your growing business. This means adopting the right plug-n-play technology platform that all parts of the business can use. It means adopting the right balance between people, automation and AI to power your business 24/7. It means choosing easy-to-use,  cutting-edge products that your team loves to use and is integral to your business.

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Published by Chetan N August 23, 2022
Chetan N