7 Tips How to Improve Live Contract Negotiation (&Examples)
Introduction
Long, drawn-out live contract negotiations where you don’t reach a result can drain your time, energy and patience. Whether you’re finalizing terms with a new SaaS vendor or ironing out details with a new customer, the process often feels slow and frustrating. But it doesn’t have to be this way.
By applying a few straightforward communication and contract negotiation strategies, you can streamline your live (online or in-person) negotiations, keep everyone focused and reach fair agreements faster. In this article ‘7 Tips How to Improve Live Contract Negotiation (& Examples)’, we will cover:
- seven tips to help you run more efficient live negotiations,
- then, answer five common questions that many small and medium-sized businesses (SMEs) have asked us; and
- finally, we’ll walk through a brief scenario showing how these tactics work in a real-world SaaS context.
7 Tips for More Effective, Streamlined Live Negotiations
1. Prepare in Advance
Preparation might sound obvious, but it’s often overlooked. Before you jump on a call, know exactly what you want—and what you can live without. Gather all the details that matter: pricing tiers, subscription lengths, service-level agreements (SLAs), data security requirements, and any key terms unique to your business model.
For instance, if you’re negotiating a SaaS contract, determine your must-have SLA features (like 99.9% uptime or a dedicated support channel) and understand how much you’re willing to pay for them. Knowing these details ensures you’re not scrambling during the call. You’ll respond faster to counteroffers and will not waste time on irrelevant points. The clearer your objectives, the quicker you can confirm or reject proposals on the spot.
To prepare effectively for our live negotiations, prepare thoroughly. Review your internal needs, compare the vendor’s standard terms to industry benchmarks and decide where you can compromise. Also, anticipate common sticking points – like automatic renewal clauses or extra fees for additional users – so you’re ready to address them. Thorough preparation reduces confusion and sets the stage for a focused, productive negotiation.
Be ready for the tough questions. See the Harvard Law School Negotiation preparation checklist here.
2. Set an Agenda and Stick to It
Without a clear roadmap, negotiations can meander and waste time. A simple agenda shared in advance keeps everyone aligned. List the key issues—such as pricing structure, onboarding timeline, renewal conditions and data protection terms – and let all parties know these are the topics to be covered.
When the call starts, refer to the agenda right away. If someone drifts off-topic (“Let’s also discuss a potential partnership feature for next year…”), you can steer them back: “That’s interesting, but let’s finalize the current subscription terms first as per our agenda.”
An agenda not only saves time but also keeps the atmosphere professional and respectful. Everyone knows what to expect, which reduces unnecessary back-and-forth. With a clear roadmap, you’re less likely to get bogged down in small details that don’t affect the final outcome.
3. Use Clear, Concise Language
Complex legal or business jargon and vague language can slow negotiations down. Stick to plain, direct language whenever possible. If you encounter a technical or legal term, clarify it right away. For example, if the vendor refers to a “Indemnification Clause” or “SLA” ask them to explain: “Can you clarify what this clause means in practical terms for our liability and what exactly the SLA will entail?”
By simplifying terms, you ensure both sides understand each other. Misunderstandings often lead to follow-up calls or extra email chains to fix what could have been settled earlier. Keep it simple: “We need a 48-hour response time for support tickets” is clearer than “We request timely fulfillment in accordance with standard SLA metrics.” Clear language reduces confusion, makes it easier to achieve agreement and speeds up the entire process.
Also, don’t just refer to a contract clause, memo or whitepaper that was shared, but explain in your own words.
4. Assign Roles and Responsibilities Within Your Team
If you have several team members on your side, assign clear roles before the call. One person should lead the conversation – this is the voice who guides the agenda and addresses the main points. Another can handle real-time edits to the contract (if you’re screen-sharing or using a collaborative doc), ensuring that agreed-upon changes are captured immediately. A third team member might be a specialist in a particular subject, etc.
This division of labor prevents people from talking over one another and ensures nothing falls through the cracks. For example, while the lead negotiator discusses the price tiers with the vendor, the notetaker can record the agreed terms, and the editor can update the master document in real-time. When everyone knows their role, the conversation flows smoothly. By the end, you’ll have a clear record of what happened and fewer reasons to schedule a second call.
When you know a particular point could be sticky, ensure that you have a specialist that joins the call to show your willingness to explain and to try yo reach agreement on the spot. Before the meeting, also ask the counterparty if their specialist is able to join so they can discuss the specific subject.
5. Actively Listen, Ask Great Questions and Validate the Other Side’s Points
Negotiations aren’t just about what you say; they’re also about how well you listen. When the other side speaks, give them your full attention. Summarize their points to show you’ve understood: “Great to hear that if we agree to sign a two-year contract, we will receive a 10% discount.”
By validating their input, you build trust and minimize friction. The other side feels heard and respected, making them more open to meet you halfway. If a vendor says they can’t offer more storage at the basic tier, acknowledging their position – “I hear you. Additional storage is challenging at this price point” – can calm tensions and open the door to creative solutions.
Don’t for get the tip to say “That’s Right” when your counterpart makes a great point. Read our article about this here.
Active listening also helps you avoid going in circles. When everyone feels understood, fewer clarifications are needed later. It’s a subtle step that speeds up the process by preventing repeated explanations or misunderstandings. Also see our article ’30 of the Best Questions to Ask in Any Negotiation’ here.
6. Leverage the Right Technology
The right tools can save a lot of time in negotiations. For example screen-sharing allows both sides to view and edit the contract simultaneously. Collaborative documents or contract management platforms let you highlight text, propose changes, and record agreements as they happen. Real-time chat tools can clarify small points without derailing the conversation flow.
Let’s say you are discussing a SaaS license agreement, you can highlight the pricing clause live, increase the user count and watch the other side’s response in real-time. This eliminates the need for lengthy email follow-ups after the call. Technology also helps ensure everyone is literally “on the same page,” reducing miscommunication and speeding up finalization.
Just remember to test your tools beforehand. Technical glitches waste time and damage the negotiation’s momentum. Ensuring everything runs smoothly keeps the process moving and makes it easier to reach an agreement.
7. Know When to Take a Break
Sometimes you hit an impasse. Maybe the vendor won’t budge on a crucial data security or liability clause or you can’t agree on cancellation terms. Instead of pushing on and raising tensions, suggest a short break: “Let’s take five minutes to review these points individually. We’ll come back with fresh perspectives.”
Stepping away from the screen allows everyone to rethink their positions. When you return, both sides might be more willing to compromise. A brief pause can save you from hours of drawn-out debate. Instead of forcing a decision amid rising frustration, you come back calmer and more solution-oriented, ultimately reaching an agreement faster.
5 Common Questions (and Answers) About Live Negotiations
1. How do I handle a party that dominates the conversation?
Use your agenda to maintain structure. Politely interrupt if they wander off: “I appreciate your input. To stay on track, let’s confirm the billing cycle terms first.” If dominance persists, consider switching negotiation formats, like proposing a written redline exchange before the next call. This allows for more balanced input and prevents one-sided monologues.
2. What if I don’t understand a technical or legal term they mention?
Ask for clarification immediately: “Could you clarify what this ‘auto-renewal clause’ entails?” A moment of asking now saves you from bigger problems later. Being upfront about what you don’t know shows professionalism and ensures no hidden surprises remain after signing.
3. How do I keep everyone engaged and focused?
Start by setting a time target: “We have one hour to finalize the user limits and support terms.” Recap progress after each point: “Great, we agreed on a 12-month term at $X per month. Next, let’s finalize the onboarding schedule.” Timeboxing and summarizing key decisions keep the conversation efficient and participants engaged.
4. What if I feel pressured to accept unfavorable terms just to end the call?
Acknowledge the urgency without conceding too quickly: “I know we’re close to wrapping up, but I need a moment to confirm these terms align with our internal policies.” Suggest a brief pause or a follow-up call if needed. It’s better to take a bit more time now than sign a bad deal you’ll regret later.
5. How can I ensure the terms agreed upon are actually implemented afterward?
End the meeting by summarizing important agreed terms, who is responsible for what and the next steps. Then send a written summary email or updated contract draft immediately after. Having a document both sides can refer to prevents “he said, she said” disputes and keeps everyone accountable for their promises.
A Quick Scenario: Negotiating a SaaS Contract in Live Negotiations
Imagine you run a growing marketing agency, and you’re negotiating a SaaS contract for a new project management platform. You’ve done your homework: you know your budget, the required user count, must-have integrations (like linking to your CRM), and the level of customer support you need.
Preparation:
Before the call, you decide that you need a minimum of 30 seats at a certain monthly rate. You also need a guaranteed response time for support tickets, integration with your CRM, and a flexible cancellation clause.
Agenda:
You send the SaaS vendor a short agenda:
- Pricing and number of seats
- Support response times and escalation policies
- Integration with CRM tools
- Cancellation and renewal terms
Clear Language:
On the call, you say, “We need at least 30 seats at $X per user per month, with a guaranteed 24-hour support response time. Can you confirm that’s possible?” This straightforward request helps the vendor respond faster. They might say, “We can offer 30 seats at that rate, but our standard support time is 48 hours.”
Assigning Roles:
In your team, you’re the lead negotiator. Your colleague is ready to update the shared Google Doc with any changes. Another teammate listens and takes notes on agreed points. While you talk pricing, your colleague highlights the relevant clauses in the contract so everyone can see what’s changing.
Active Listening:
The vendor expresses concern about meeting the 24-hour support response. You summarize: “You’re saying 24 hours might be tight. How about 36 hours as a compromise?” This shows you listened and are open to meeting them halfway.
Leveraging Technology:
As you discuss these terms, you screen-share the contract. Your teammate edits the pricing clause and support terms in real-time. Everyone sees the new wording instantly. No follow-up emails are required later to confirm what was changed. Additionally, if you have shared the document in your organization (Google Docs or Onedrive for example), you can ask questions to other team members by adding a comment and tagging them.
AI use: while negotiating certain, open legal AI tool (Harvey, Legora, GCAI) to amend or add clauses or definitions. This will greatly speed up reaction time regarding the amendment or addition of certain clauses
Taking a Break:
If you reach a deadlock. For example, I asked for a short break when the vendor wanted a strict auto-renewal clause where we preferred a more flexible cancellation policy. Another option can be to take a break when a derogatory remark was made during a call. “Let’s take five minutes so we can consider some options.” After the break, you might propose a partial compromise: a 30-day cancellation notice instead of 60 days. The vendor, now calmer, might agree.
By the end of the call, you summarize: “We’ve agreed on 30 seats at $X per month, a 36-hour support response, full CRM integration within 30 days of signing, and a 30-day cancellation notice. I’ll send an updated contract draft today, and you’ll review it by Friday.” Sending that draft immediately seals the verbal agreement in a written form, reducing any risk of confusion.
Building Confidence Over Time in Live Negotiations:
These tactics become easier the more you use them. After a few live negotiation sessions, you’ll know when to push back, when to pause, and how to keep the conversation clear and constructive. Over time, refine your agenda templates, prepare standard clauses, and train your team to handle their roles seamlessly.
Improving your negotiation approach doesn’t just save time. It also helps maintain positive relationships with vendors and clients, who appreciate smooth, respectful interactions. Everyone wins when deals close faster and with less friction.
Also, don’t forget to check out our list of negotiation Books to read to become a better negotiator.
Conclusion:
Long live negotiations where you reach no results don’t have to be your standard. By preparing in advance, setting a clear agenda, speaking plainly, delegating tasks within your team, listening closely, using the right tools, and knowing when to step back, you can drastically shorten negotiation times and reduce stress.
This structured approach leads to fairer deals struck in less time. Instead of hours or days spent ironing out small details, you’ll wrap up contracts more efficiently. You’ll protect your interests and keep your partners happy, setting the stage for productive, long-term relationships.
Need help?
For help with your contract negotiations and related processes, reach out to us via info@amstlegal.com or book an appointment with Robby Reggers here.
9 Actions to End the Year Strong in Contract Negotiations
Introduction
As the end of Q4 2024 approaches, legal and commercial teams face pressure to finalize contracts before the holiday break. The final weeks of the year present unique challenges, with tight deadlines, competing priorities and holiday disruptions. Success depends on aligning your team and prioritizing the most critical contracts with a focus on maintaining clear communication throughout the process.
With 20 December 2024 as the (most likely) last day to finalize contracts, prioritizing deals that directly impact your company’s goals is essential. At the same time, addressing dormant deals and preparing for next year when time allows will ensure a smooth transition into 2025.
What We Will Cover in This Article
To finish the year strong and enter 2025 with momentum (while feeling rested), you need to focus on the following now:
- Bring your teams together to align on priorities and processes.
- Devote your full attention on clear communication, both internally and with customers.
- Prioritize Q4 2024 deals, address dormant contracts and prepare Q1 2025 deals if time permits.
In this article, we will outline 9 actionable tips to help you organize your efforts, streamline workflows, and avoid a year-end scramble.
9 Actions to Close Out the Year Successfully
1. Align Priorities Across Teams
The first and most crucial step is to bring all relevant teams together—Legal, Sales, Procurement, and Operations. Without alignment, resources can be wasted, and critical deals may slip through the cracks.
- Host Priority Meetings: Convene key stakeholders to discuss active contracts and set clear priorities.
- Set Realistic Timelines: Share anticipated closing dates and deadlines, taking into account holiday schedules.
- Address Bottlenecks Early: Identify potential obstacles, such as approvals or customer feedback, and plan to resolve them.
- Document Priorities: Create a shared list of deals and communicate expectations to all involved.
Why This Matters: A lack of alignment leads to confusion and delays. Clear communication ensures everyone is working toward the same goals.
2. Finalize Q4 Deals That Matter
After aligning priorities, focus your efforts on closing Q4 2024 deals that are most important to your company’s financial and strategic objectives. These contracts often involve high-value agreements or partnerships where delays could have serious consequences.
- Assign dedicated resources to critical deals.
- Regularly update internal and external stakeholders on progress.
- Use the tools and processes your company has designated for tracking and approvals.
Key Question: Which deals are tied to year-end financials or essential company objectives?
3. Prioritize High-Value Deals
Within the Q4 pipeline, high-value deals deserve special attention. These agreements often require more complex negotiations, multiple approvals, or input from senior decision-makers.
- Set weekly check-ins with deal teams to track progress.
- Identify potential risks or delays early and create contingency plans.
- Ensure executive stakeholders are available for final approvals.
Why This Matters: High-value deals typically have the greatest impact on your company’s year-end performance and strategic goals.
4. Push Small Deals to Close Quickly
While high-value contracts demand attention, small deals should not be overlooked. These agreements are often easier to finalize and can contribute to year-end results with minimal effort.
- Set a goal to close smaller contracts early in December.
- Automate workflows where possible to speed up execution.
Why This Works: Small deals are low-hanging fruit that boost momentum and free up resources for larger negotiations.
5. Address Dormant Deals Immediately
Dormant contracts – those that you have chased but have not heard back from or are unresolved – should be reviewed and addressed now.
- Discuss and determine if these deals can be realistically closed before year-end.
- For contracts that cannot be finalized, communicate plans to defer them to 2025.
Key Tip: Don’t let dormant deals distract from critical Q4 priorities. Clear them out to create focus and clarity.
6. Communicate Proactively with Customers
Proactive communication is essential for keeping deals on track. Schedule touchpoints with high-priority customers to confirm timelines and address any outstanding issues.
- Share clear expectations for closing terms and deadlines.
- Follow up consistently to maintain momentum.
- Ask if certain specific closing requirements are important for the customer – for example signing protocols & timing.
Why This Works: Clear communication reduces uncertainty, builds trust, and helps avoid last-minute surprises.
7. Enable Your Team with Clear Instructions and Tools
Ensure your team has access to the right tools and a clear understanding of how to use them. This includes contract management systems, signing tools, and repositories.
- Save contracts in designated locations for compliance and easy access.
- Track progress on negotiations, approvals, and signatures using your company’s approved tools.
- Refresh your team on contract thresholds, policies, and escalation processes.
Why This Matters: Standardized workflows minimize confusion and ensure contracts are executed efficiently.
8. Review Processes, Not Just Contracts
A successful year-end close depends on streamlined workflows, not just finalizing agreements. Take time to review and address any gaps in your processes.
- Are all approvals aligned and documented?
- Have compliance requirements been met?
- Are decision-makers available for final signatures?
Why This Matters: Process inefficiencies can derail even the most well-negotiated deals.
9. Review Q1 2025 Deals Only If Time Permits
Finally, if your team has capacity, begin preparing for Q1 2025. Use this time to lay the groundwork for contracts that will need early attention next year.
- Draft templates and standard terms.
- Schedule initial meetings with stakeholders for early January.
- Address any known issues that could cause delays.
Key Tip: Keep your focus on 2024 until all critical contracts are on track to close.
Conclusion: Focus on What Matters Most
As the year draws to a close, success hinges on prioritization and clear communication. Focus your efforts on:
- Bringing your teams together to align priorities and streamline processes.
- Closing critical Q4 2024 deals that directly impact financial and strategic goals.
- Resolving dormant deals or deferring them to 2025 with a clear plan.
- Preparing for Q1 2025 only after year-end priorities have been addressed.
By following these steps and equipping your team with the right tools and processes, you can ensure a smooth year-end close and start 2025 with confidence.
We can also recommend a great article on this subject by Bari Williams, Head of Legal & Legal Content at LegalOn Technologies, see link on contractnerds.
For help with your contract negotiations and related processes, reach out to us via lowa@amstlegal.com or book an appointment with Robby Reggers here.
10 Tips You Need to Know to Improve Your Contract Templates
1. Introduction
Sales teams, entrepreneurs, procurement specialists and legal professionals all share one common need: contracts that are clear, efficient and enforceable. When done right, they accelerate deals, minimize risks and build trust. Contract Templates are great to achieve this.
These legal documents do not only formalize agreements but also protect business interests by clearly defining risks, responsibilities and expectations between the contractual parties. However, as important as contracts are, the process of managing them can be complex, time-consuming and inefficient.
The solution is standardizing contracts in templates. This can be in the form of template NDA’s, Custom Agreements, General Terms & Conditions, Master Services Agreements, Order Forms or even letters. The key is to create easy to use, not overly complicated (and short where possible!) templates that cover the company’s risk. A great practical book on this is ‘Sign Here: The enterprise guide to closing contracts quickly’ by Alex Hamilton.
Creating and maintaining strong, streamlined contract templates can help companies enhance efficiency, reduce legal risks and optimize resource allocation. Also see my article on this here. However, simply having templates is not enough. Organizations need to ensure that they are accessible, up-to-date and aligned with both legal and business objectives.
This article series, “10 Tips You Need to Know to Improve Your Contract Templates”, was written to help businesses tackle these challenges head-on. We will explore key strategies to improve contract templates, ensuring they become valuable tools that drive efficiency, consistency and strategic growth.
Let’s start by understanding why we need templates in the first place and how to overcome common issues that arise from their use. This Introduction article will be followed up by 10 more articles including a practical, step-by-step guide explaining how to improve templates, creating better processes and rolling them out successfully.
2. Why we need (better) Contract Templates
Companies need to work on avoiding overcomplicating contracts and to focus on improving contract workflows.
One effective way to achieve this is by creating standardized templates for the company’s most common agreements. For example, Non-Disclosure Agreements (NDAs), Terms & Conditions (T&C), Data Privacy Agreements (DPA), Service Level Agreements (SLA), Master Services Agreements (MSAs) etc.
Standardized contract templates can also significantly reduce the time spent on repetitive drafting. It enables faster contract creation, review, and approval, which not only speeds up business processes but also frees up valuable resources for more strategic tasks.
Moreover, contract templates help maintain consistency in the language, terms, and legal safeguards across all agreements, reducing the risk of errors, contradictory clauses, and legal disputes. By ensuring that key legal protections are consistently applied, contract templates minimize legal risks and contribute to more efficient, reliable contract management overall.
However, despite the clear benefits of using standard contract templates, many companies struggle with effectively implementing them. The correct use of these templates often remains a stumbling block, and failure to address common issues can lead to inefficiencies, delays, and legal risks.
In the next paragraphs, we will first highlight what the 4 most common issues are with Contract Templates, secondly what the consequences are of these issues, finalizing with explaining are the 9 advantages of having great (so not complicated & long) Contract Templates.
3. Common Issues with Contract Templates
While standardized contract templates can improve efficiency, many organizations encounter obstacles that prevent them from fully realizing their potential by using contract templates. In practice several factors can hinder the successful implementation and utilization of such contract templates.
Four of the most common issues with contract templates include the following:
Complexity
Overly complex and lengthy templates often result in confusion and create more questions than answers for the commercial team who use the templates in practice. The language may contain specific legal terms or overly complex wording, that can be difficult to comprehend, which in turn can slow down the contract review process. We also often spot that templates are outdated and no longer fit with the products & services that the company is providing.
Accessibility
Locating and using the correct template can be a challenge. The absence of a clear system for accessing the right templates often results in the use of outdated or unauthorized versions, creating further inconsistencies.
Limited Resources
Many businesses lack the resources to dedicate time to continuously improve their contract templates. This lack of investment often leads to templates that are outdated or irrelevant to current business needs.
Excessive Legal Review
Despite having templates in place, Legal often still need to review and negotiate a high volume of contracts due to the lack of well-defined processes and the issues mentioned above. This increases the burden on the Sales, Procurement & Legal department and slows down the contracting process.
The existence of these obstacles highlights the importance of having a clear strategy and process for managing contract templates. Understanding these common issues is a first step towards addressing them and ensuring smoother contract workflows.
4. Consequences of Contract Template Issues
The issues described above surrounding contract templates can have significant, far-reaching consequences for businesses in several areas. The idea of having solid contract templates in place relies heavily on whether the templates are easy to use, if they are consistent and whether they have been reviewed and continuously get managed properly. Mainly, this revolves around inefficiencies connected to the contract templates due to poor contract template management.
Incorrect, overcomplicated and long templates result in the following issues:
Delays in Contract Creation, Negotiation and Closing
Complex and outdated templates can prolong the time it takes to finalize contracts due to the need to involve legal professionals. If the template is too complex, it won’t be possible for anyone to use the template at issue. Additionally, this can cause delays that may disrupt operations and hinder business growth that otherwise would have been possible.
Increased Risk Exposure
Contracts that are inconsistent or not properly reviewed make the company vulnerable to legal and financial risks, including disputes, compliance issues, and unfavorable terms. This is especially the case if there are several contract templates that cover different areas.
Higher Workloads
The inefficiencies of managing contract templates translate to additional work for Legal and other involved departments. This means that they must spend more time resolving problems, negotiating terms, and handling unnecessary contract revisions since they are the only ones who are fit for the job. In turn, this creates less time for them to focus on more complex, high-value deals.
Strained Business Relationships
Poor contract management can also erode trust with clients, vendors, and partners. If the contracting process is slow, confusing, or fraught with errors, it can negatively impact business relationships and damage the company’s reputation. For instance, the counterparty can get the impression that the inconsistent templates may reflect your way of doing business.
In other words, the consequences of poorly managed contract templates extend far beyond operational inefficiencies. To prevent these issues, companies need to reassess their contract management strategies and prioritize the development of high-quality templates.
5. Results of having State-of-the-Art Templates
When businesses take the time to develop and maintain strong contract templates, they unlock a wide range of benefits that positively impact both their day-to-day operations and long-term strategic goals. These benefits arise from the ability to standardize contract processes, reduce legal risks, and enhance collaboration between departments.
Nine key advantages are:
Shorter Contract Negotiation Times
High-quality templates serve as a strong starting point for contract negotiations, eliminating the need to negotiate basic terms and conditions from scratch. Since most of the standard clauses are pre-approved and align with company policy, both parties can focus on customizing specific deal points rather than revisiting the entire contract.
Increased Efficiency and Simplified Contract Handling
Streamlined templates reduce the time and effort required to draft, review, and approve contracts. This reduces the administrative burden on both Legal and business teams, allowing them to focus on higher-value tasks such as negotiating complex deals or working on strategic initiatives. In fast-paced industries, this can provide a critical competitive advantage.
Reduced Workload
With standardized, well-organized templates, the Legal department can reduce the number of contracts that require individual review. This means that only the most complex or high-risk contracts will require in-depth legal review. It allows the Legal team to focus on more strategic activities, such as risk management or regulatory compliance.
Enhanced Consistency and Contract Quality
High-quality templates ensure that contracts across the organization are aligned with company standards, reducing the risk of errors and inconsistencies. Enhanced consistency also helps to build trust with external parties, as they can rely on the fact that the company’s contracts follow a predictable structure.
Risk Mitigation
Strong contract templates serve as a built-in risk management tool, ensuring that all agreements contain the necessary legal safeguards to protect the company’s interests. By ensuring that contracts contain the necessary legal safeguards and are compliant with applicable regulations, companies can better manage their legal and financial risks.
Decreased Legal Costs & Improved Cost Efficiency
With fewer contracts requiring in-depth legal review, companies can reduce their legal expenses and allocate their budgets more efficiently. This cost efficiency allows companies to allocate their legal budgets more effectively, focusing on complex matters that truly require expert legal input.
Stronger Business Relationships
A smooth and transparent contracting process enhances trust and collaboration with clients, vendors, and partners. It also reduces delays and confusion, making it easier to finalize agreements quickly and without unnecessary back-and-forth.
Optimized Resources
Well-organized contract processes help businesses make the most of their available human and financial resources. By standardizing and streamlining contract workflows, companies can minimize the time and effort spent on repetitive tasks, allowing teams to focus on strategic growth initiatives rather than administrative burdens.
Empowered Commercial Teams
With easy access to effective contract templates, commercial teams can take the lead in negotiations without the constant need for legal intervention. When teams have access to well-structured, pre-approved templates, they can confidently lead discussions and close deals faster.
In summary, adopting state-of-the-art contract templates into your business processes leads to a wide range of benefits. Not only do they increase efficiency and reduce legal costs, but they also improve the consistency and quality of your contracts. By streamlining contract workflows and fostering better business relationships, high-quality templates help companies mitigate risks, optimize resources, and accelerate growth. Implementing these templates is a smart investment that delivers long-term operational and strategic advantages.
6. Experienced Results of Contract Optimization
Throughout Robby Reggers’ 20-year career advising businesses on contract optimization within legal departments, the most successful outcomes were achieved by companies that embraced a collaborative methodology for template optimization. By refining contract templates with input from across the organization, companies can ensure that their contracts are not only legally robust, but also fully aligned with business objectives and responsive to customer needs.
For help improving contract templates, negotiations and related processes, reach out to us via lowa@amstlegal.com or book an appointment with Robby Reggers here.
Wat is een NDA (Geheimhoudingsovereenkomst)?
Inleiding
Non-disclosure agreements (NDA’s) of Geheimhoudingsovereenkomsten zorgen ervoor dat vertrouwelijke informatie alleen wordt gebruikt voor het specifieke doel dat tussen de partijen in een zakelijke relatie is overeengekomen.
In de zakenwereld, waar ideeën, innovaties, financiële informatie en bedrijfsgeheimen de sleutels tot succes zijn, spelen NDA’s een belangrijke rol in het beschermen van vertrouwelijke informatie. Dit artikel `Wat is een NDA (Geheimhoudingsovereenkomst )?´ biedt een uitgebreid overzicht van de basis van NDA’s in de context van Business to Business (B2B) transacties.
Wat is een NDA
Een NDA, ook wel een Geheimhoudingsovereenkomst genoemd, is een juridisch bindend contract tussen twee of meer partijen om vertrouwelijke informatie te beschermen die tijdens hun zakelijke relatie mogelijk wordt gedeeld. Meer specifiek is vertrouwelijke informatie niet-openbare informatie van een bedrijf die schade kan toebrengen als deze openbaar wordt gemaakt. Meestal wordt in een NDA een lijst opgenomen van de vertrouwelijke informatie, zoals bedrijfsgeheimen, knowhow, product- en technologiegerelateerde informatie, kortingen, klantenlijsten, verkoop- en financiële informatie, bedrijfsplannen, enzovoort.
Wanneer en waarom hebben we een NDA nodig?
In de B2B-context kunnen NDA’s een essentieel hulpmiddel zijn om eigendomskennis, bedrijfsgeheimen en andere vertrouwelijke data te beschermen die belangrijk zijn voor een bedrijf om zijn concurrentievoordeel te behouden. Deze gevoelige informatie moet daarom duidelijk en zorgvuldig worden gedefinieerd in de NDA. Let er echter op dat de definitie niet te beperkt is, zodat je geen belangrijke categorieën over het hoofd ziet. Door een goed opgestelde NDA te gebruiken, kan je bedrijf waardevolle informatie beschermen tegen concurrenten of andere derden die voordeel zouden kunnen halen uit het openbaar maken van dergelijke informatie.
Doelstelling van een NDA
De primaire doelstelling van een NDA is ervoor zorgen dat de verstrekte gevoelige informatie veilig wordt gebruikt en behandeld, om te voorkomen dat deze zonder de juiste toestemming en goedkeuring van de partij die de informatie verstrekt, wordt gebruikt of openbaar wordt gemaakt. Een NDA wordt vaak ondertekend aan het begin van een zakelijke relatie of voordat een zakelijke relatie wordt aangegaan.
Praktijkvoorbeelden
Een veelvoorkomend praktijkvoorbeeld is de situatie waarin een technologiebedrijf van plan is gespecialiseerde softwareoplossingen te verkopen en aan te bieden aan een zakelijke klant. De bedrijven beginnen met het bespreken van de manier waarop de software kan worden geïntegreerd in de systemen van de klant, en bepalen de prijs voor de integratie en het gebruik van de software. Hierbij kan het technologiebedrijf inzicht geven in zijn prijzen, Service Level Agreements (SLA), beleid en software, terwijl de klant op zijn beurt zijn uitdagingen en bedrijfsplannen kan delen.
Tijdens dit proces zijn de bedrijven van plan om documenten uit te wisselen die niet openbaar zijn, en dus vertrouwelijk. Om deze vertrouwelijke informatie te beschermen, wordt geadviseerd dat de bedrijven een NDA ondertekenen voordat ze deze informatie met elkaar delen. Zo’n NDA kan worden beëindigd wanneer de partijen een definitief klantcontract ondertekenen, waarin ook bepalingen over vertrouwelijkheid zijn opgenomen.
Hoe beschermt de NDA vertrouwelijke informatie
Net als bij andere juridische contracten, heeft het schenden van een NDA belangrijke juridische gevolgen. Afhankelijk van de ernst van de schending kunnen de consequenties variëren van rechtszaken en financiële boetes tot – in extreme gevallen – strafrechtelijke vervolging. Het schenden van een NDA kan ook schadelijk zijn voor de reputatie van een partij, wat langdurige gevolgen kan hebben voor het bedrijf, vooral in zakelijke relaties en sectoren waar vertrouwen en vertrouwelijkheid van groot belang zijn.
Hoewel claims en rechtszaken met betrekking tot het schenden van een NDA niet veel voorkomen, kan het zeker gebeuren dat een bedrijf een boete moet betalen voor het schenden van vertrouwelijkheid. AMST Legal heeft in het verleden meerdere keren advies gegeven over dergelijke kwesties.
Welke NDA heb je nodig? Verschillende soorten NDAs uitgelegd.
Er zijn verschillende soorten NDA’s die kunnen worden gebruikt, afhankelijk van de specifieke omstandigheden en de behoeften van de betrokken partijen. Hieronder staan de drie meest voorkomende soorten NDA’s:
Unilaterale (Eenzijdige) NDAs
Bij een unilaterale NDA legt één partij, meestal de verkoper, de andere partij de verplichting op om de informatie te beschermen en deze niet te openbaren of te gebruiken voor andere doeleinden dan wat in de overeenkomst is vastgelegd. In een B2B-context worden unilaterale NDA’s vaak gebruikt tussen kopers en verkopers. Bijvoorbeeld, een Biotech bedrijf (verkoper) kan een unilaterale NDA gebruiken om te voorkomen dat de koper gevoelige informatie onthult die hij heeft verkregen tijdens de aankoop van producten of diensten, zoals intellectueel eigendom en computertechnologie. Dit type NDA komt ook vaak voor bij openbare aanbestedingen en bij RFI- (Request for Information) en RFP- (Request for Price) situaties.
Bilaterale, Tweezijdige of Wederzijdse NDA
Deze NDA die het meest voorkomt wordt overeengekomen tussen twee partijen die beide vertrouwelijke informatie met elkaar delen en waarbij beide gebonden zijn aan vertrouwelijkheidsverplichtingen. Bilaterale NDA’s worden vaak gebruikt wanneer partijen aanzienlijke hoeveelheden vertrouwelijke informatie moeten uitwisselen tijdens hun onderhandelingen of zakelijke relatie. Dergelijke situaties kunnen zijn: joint ventures, leverancierscontracten of fusies en overnames.
Multilaterale NDA
Deze NDA tussen drie of meer partijen komt het minst voor. Een multilaterale NDA wordt overeengekomen tussen drie of meer partijen, waarbij ten minste één partij gevoelige informatie deelt met de andere partijen en deze partijen vertrouwelijkheidsverplichtingen oplegt. Dit type NDA vereenvoudigt de administratie en het papierwerk voor de betrokken partijen, omdat ze niet meerdere unilaterale of bilaterale NDA’s met elkaar hoeven overeen te komen. In een zakelijke relatie waarbij drie of meer partijen betrokken zijn, en alle partijen vertrouwelijke informatie willen delen, kan een enkele multilaterale NDA de noodzaak van verschillende bilaterale NDA’s vervangen. Dergelijke situaties kunnen zich voordoen bij samenwerkingsverbanden, overheidscontracten (zoals defensie- en ruimtevaartcontracten) en consortiumovereenkomsten.
Conclusie
Een NDA is een essentieel juridisch instrument voor het beschermen van vertrouwelijke informatie in zakelijke relaties. Of het nu gaat om een unilaterale, bilaterale of multilaterale NDA, de overeenkomst zorgt ervoor dat gevoelige gegevens veilig blijven en alleen voor het beoogde doel worden gebruikt. In de B2B-context is het gebruik van NDA’s van groot belang om concurrentievoordeel te behouden, bedrijfsgeheimen te beschermen en vertrouwen tussen partijen te waarborgen.
Het schenden van een NDA kan juridische en financiële gevolgen hebben, maar kan ook leiden tot reputatieschade van een bedrijf. Het is dan ook cruciaal voor bedrijven om goed na te denken over welk type NDA het beste past bij hun specifieke situatie, om zo de vertrouwelijkheid van gevoelige informatie optimaal te waarborgen.
Bij vragen over NDAs kunt u altijd contact opnemen ons of meteen een afspraak inplannen via deze link.
NDA-skyldigheter: Vad du måste veta (3)
1. Inledning
Är du redo att fördjupa dig i sekretessavtal (NDA)? Vi gick igenom grunderna och centrala delar av sekretessavtal i del 1 här, och i del 2 här förklarade vi fyra vanliga klausuler som parter, definitioner och syftet med sekretessavtal. Nu ska vi utforska de viktiga sekretesskyldigheterna som gäller för den mottagande parten enligt ett sekretessavtal.
Lär dig hur du skyddar din känsliga information under affärspartnerskap med denna artikel “NDA-skyldigheter: Vad du måste veta”.
Fyra snabba fakta om NDA
Enligt ett NDA, vanligt benämnt sekretessavtal, går parterna med på att:
- Sekretesskyldigheter: Hålla information hemlig, använda den endast för det ändamål som anges i sekretessavtalet och inte avslöja den för obehöriga parter.
- Upprätthålla informationssäkerhet: Implementera rimliga säkerhetsåtgärder för att skydda informationens konfidentialitet.
- Undantag: I vissa fall gäller inte sekretessen, som när informationen är offentligt tillgänglig eller om upplysningar krävs enligt lag.
- Förstöra information: När konfidentiell information ska återlämnas eller raderas då sekretessavtalets syfte har uppnåtts.
Även om sekretessavtal vanligtvis har företräde framför lagreglering, kan särskilda lagar och förordningar tillämpas. Exempelvis sekretesslagar av olika slag, GDPR, arbetsrättsrättsregler och regler om företagshemligheter.
2. Sekretesskyldigheter för den mottagande parten
Begränsad användning av konfidentiell information
I ett sekretessavtal har den mottagande parten huvudansvaret för att skydda sekretessen. Detta innebär vanligtvis att den konfidentiella informationen endast får användas för det angivna ”syftet” enligt avtalet. Se vår tidigare artikel här där vi förklarar varför detta är viktigt och hur man korrekt formulerar syftet. Genom att göra detta säkerställer man att den konfidentiella informationen hålls hemlig och hindrar mottagaren från att avslöja den för en tredje part.
Ett välskrivet sekretessavtal bör uttryckligen begränsa mottagande part från att inte bara direkt och medvetet missbruka eller avslöja konfidentiell information, utan också från att göra det indirekt, vårdslöst eller oavsiktligt.
Utvidgning av tillåtna mottagare
En av de viktigaste delarna av ett sekretessavtal som kräver särskild uppmärksamhet är: “Vem får ta emot den konfidentiella informationen?”
Eftersom det ofta inte bara är parterna i sekretessavtalet som behöver få den konfidentiella informationen är det viktigt att utvidga dessa sekretessskyldigheter bortom den mottagande parten själv.
Vanliga exempel på tredje parter inkluderar:
- Professionella rådgivare såsom revisorer, konsulter eller advokater,
- Agenter, direktörer, anställda och
- Filialer/bolag inom samma koncern.
Se därför till att du inkluderar mycket tydliga definitioner av tredje parter som får ta emot den konfidentiella informationen och under vilka omständigheter.
Vanligtvis är dessa omständigheter att dessa tredje parter endast får ta emot den konfidentiella informationen om de har:
- ett behov av att veta informationen i samband med syftet (som definieras i sekretessavtalet), och
- juridiska skyldigheter för sekretess och icke-användning med avseende på den konfidentiella informationen som väsentligen liknar mottagande parts skyldigheter enligt sekretessavtalet.
Upprätthålla informationssäkerhet
Det är avgörande att förstå vikten av att skydda den konfidentiella informationen som delas. Om du tar emot konfidentiell information är det viktigt att förstå och acceptera att du är skyldig att implementera rimliga säkerhetsåtgärder. Detta inkluderar tekniska, fysiska och organisatoriska åtgärder för att skydda informationens konfidentialitet och förhindra obehörig åtkomst eller avslöjande.
Undantag från sekretesskyldighet
Normalt innehåller sekretessavtal vissa undantag från de sekretessskyldigheter som åläggs den mottagande parten. När det kan bli fallet inkluderar nedan fyra olika exempelsituationer.
Allmänt känd information
Om informationen blir offentligt tillgänglig för allmänheten (utan att mottagande part brutit mot sekretessavtalet) upphör sekretessskyldigheterna för mottagaren och dess dotterbolag att gälla som bindande.
Tidigare vetskap
Om informationen införs i en offentlig domän (utan att mottagande part brutit mot sekretessavtalet) befriar också mottagaren och dess dotterbolag från sekretessskyldigheterna.
Tredje-parts avslöjande (inklusive dotterbolag)
När mottagaren får information från en tredje part som har laglig rätt att avslöja den, behöver de inte längre hålla informationen konfidentiell.
Rättsliga krav
Ett viktigt undantag tillåter mottagaren, dess dotterbolag/filialer eller tredje parter att avslöja konfidentiell information genom en domstolsorder eller myndighetsbegäran. Vanligtvis ska den avslöjande parten informeras innan informationen lämnas ut för att följa den juridiska processen.
Återlämnande/destruering av informationen
När syftet med att dela konfidentiell information är uppnått kan den avslöjande parten begära att den mottagande parten återlämnar eller förstör den konfidentiella informationen som fortfarande är i deras besittning.
Till exempel kan den avslöjande parten begära att den mottagande parten återlämnar kopior, prover och annat material som innehåller konfidentiell information samt kräva att den mottagande parten raderar/förstör digitala data som innehåller konfidentiell information.
På grund av dagens komplicerade IT-miljöer hos de flesta företag kan det vara antingen väldigt utmanande eller kostsamt att helt eliminera data. Därför råder vi att inkludera formuleringar som: ”parterna är överens om” i sekretessavtal gällande destruering av digital data.
Specifika lagar kan tillämpas
Även om sekretessavtal vanligtvis omfattar reglering av sekretesskyldigheter är det viktigt att inse att specifika lagar och förordningar kan åsidosätta eller komplettera avtalsregleringen i vissa situationer.
Exempel på sådan rättsreglering inkluderar: sekretesslagar, GDPR, arbetsrättsregler och regler om företagshemligheter.
Dessa lagar och förordningar kan ställa ytterligare krav eller medge mer vittgående undantag, så beakta dessa skyldigheter när du ingår eller tolkar ett sekretessavtal för att säkerställa fullständig efterlevnad. Dessutom, se även denna artikel från Hogan Lovells för ytterligare information om ämnet.
3. Slutsats
Medan titeln på denna artikel “Skriv inte på det där NDA:et än! Förstå dina skyldigheter först” kanske kan låta lite dramatisk, understryker den en viktig poäng: sekretessavtal underskattas ofta.
Att förstå sekretesskyldigheter enligt sekretessavtal, särskilt för den mottagande parten, är avgörande. Det är viktigt att inte förhasta sig och skriva under dessa avtal utan att helt förstå den potentiella påverkan på ditt företag och din handlingsfrihet.
Genom att noggrant granska och förstå dina skyldigheter kan du skydda dina intressen, undvika kostsamma rättsliga tvister och säkerställa ett framgångsrikt partnerskap.
Kontakta oss på +31650608964 eller lowa@amstlegal.com om du behöver mer information eller rådgivning om detta ämne.
How to Renegotiate Contracts: What You Need to Know
Introduction
We’ve all been there: whether it’s asking for a salary increase, renegotiating your apartment lease, or updating a business contract due to new contract terms or a higher price.
Renegotiations are a part of life, both personally and professionally, yet these can be one of the most challenging conversations we face. How can we renegotiate contracts better and why is it different to renegotiate an existing contract?
In this article ‘How to Renegotiate Contracts: What You Need to Know’, we will explore the essentials of contract renegotiation: what it is, why it matters and when to consider it.
After advising a large US / Netherlands based client through critical contract renegotiations in the past years and working on contract renegotiations since 2004, we are looking forward to share our experiences and tips on contract renegotiations.
What Is a Contract Renegotiation?
Definition of Contract Renegotiation
Revisiting Terms
Contract renegotiation involves modifying the existing terms of a contract between parties. Unlike initial negotiations, where the focus is on establishing a new agreement, renegotiation aims to adjust current terms to better align with evolving needs and circumstances.
This is particularly difficult as there is already an existing relationship and contract, but the current terms need to be amended.
Building on Relationships
Renegotiations are built on the history and trust already established between parties. This foundation can facilitate more open communication and a collaborative approach to finding mutually beneficial solutions.
Contracts We Renegotiate Most Often
Salary Agreements
Negotiating a raise or changing your compensation package involves revisiting the terms of your employment to better reflect your current capabilities, growth, contributions and market value.
Lease Agreements
From apartment rentals to office spaces, lease agreements often require renegotiation, especially when circumstances change. You might seek to adjust the rent, extend the lease term, or modify maintenance responsibilities.
Commercial Contracts
Businesses frequently renegotiate contracts with suppliers, clients, or partners to adapt to changing market conditions, change pricing, update service offerings or address performance issues.
Service Agreements
As companies grow or change course, the scope of work with service providers may need updating. Renegotiating service agreements ensures both parties are aligned on expectations and deliverables.
Subscription Services
In our digital age, we often engage in contracts for software, memberships, or utilities. Renegotiating these can lead to different pricing, additional features or terms that better suit your needs.
The Nature of Contracts
Dynamic Agreements
Contracts should be viewed as living documents that may require adjustments over time. As businesses grow and markets change, what was appropriate at the contract’s inception may no longer be suitable.
Common Misconceptions
There’s a common belief that contracts are immutable and must remain static until they expire. This misconception can hinder businesses from adapting to new opportunities or challenges.
Why Renegotiate a Contract?
Adapting to Changing Circumstances
Market Fluctuations
Economic changes can impact pricing, supply and demand. Renegotiating contracts allows businesses to adjust terms in response to inflation, currency fluctuations, products changes or shifts in market dynamics.
Technological Advancements
New technologies can alter operational needs or capabilities. For example, adopting automation tools may change service requirements, necessitating contract updates.
Regulatory Changes
Laws and regulations evolve, and contracts must comply with current legal standards. Renegotiation ensures that agreements remain legally sound and avoid potential penalties.
Contract Improvements
Due to professionalization of the sales, procurement and/or legal teams, contracts need to be updated to enhance the customer experience, increase efficiency and decrease risks.
Addressing Performance Issues
Underperformance
If one party fails to meet their obligations, renegotiation provides an opportunity to address these issues formally. This could involve modifying expectations, timelines, or remedies for non-compliance.
Overperformance
Conversely, exceeding expectations may open doors to expand the scope of work or adjust compensation to reflect the added value.
Enhancing Mutual Benefits
Optimizing Terms
Renegotiation can improve conditions for better efficiency or profitability. This might include adjusting payment schedules, delivery terms, or service levels to better suit both parties.
Strengthening Relationships
Open communication during renegotiation can reinforce partnerships. Demonstrating flexibility and a willingness to collaborate fosters trust and long-term cooperation.
Resolving Disputes
Clarifying Ambiguities
Contracts may contain unclear terms that lead to misunderstandings. Renegotiation allows parties to clarify these ambiguities, reducing the risk of future conflicts.
Mitigating Risks
Adjusting terms can reduce potential liabilities. For instance, modifying indemnification clauses or adjusting responsibilities can protect both parties from unforeseen risks.
When to Renegotiate a Contract
Contractual Milestones
Renewal Dates
Contract renewals are natural points to revisit and adjust terms. Before automatic renewals take effect, reviewing the agreement ensures it continues to meet both parties’ needs.
Project Phases
In long-term projects, transitions between phases offer opportunities to assess performance and make necessary adjustments.
Significant Business Changes
Mergers and Acquisitions
Organizational changes can affect contractual obligations. Renegotiation ensures that contracts align with the new entity’s structure and strategy.
Financial Shifts
Changes in budget, funding, or financial health may require contract adjustments to reflect new economic realities.
External Factors
Economic Downturns or Booms
Macroeconomic conditions can influence market stability. Renegotiating terms can help manage risks during downturns or capitalize on growth during booms.
Legal or Regulatory Updates
New compliance requirements may necessitate changes to contract terms to ensure ongoing legality and enforceability.
Early Warning Signs
Consistent Issues
Repeated problems may indicate misaligned terms. Addressing these through renegotiation can prevent further complications.
Feedback from Stakeholders
Input from employees, customers, or partners can highlight areas where the contract may need adjustments.
Contract Updates
Contract Template Improvements
Improvements in contract templates due to professionalization of the Company or mitigation of risks.
Change in Contract Setup
Linked to the previous point, the contract template structure is subject to change. For example, instead of using one large contract, the contract template is now divided into general terms and conditions that links to various addendums that can be found on the website of the company.
This is one of the best ways to decrease negotiation time, improve contract management and mitigate risks for the company.
Conclusion
Recap of Key Points
Contract renegotiation is a vital tool for businesses to adapt to changing circumstances, address performance issues, enhance mutual benefits, and resolve disputes.
Recognizing when to renegotiate – such as at contractual milestones, during significant business or contract changes, or in response to external factors – can prevent risks associated with outdated agreements.
Call to Action
Businesses should regularly assess their contracts and consider renegotiation as a strategic tool for maintaining strong, mutually beneficial relationships.
Closing Thoughts
Adaptability is essential in today’s business environment. Embracing contract renegotiation not only safeguards your interests but also fosters partnerships built on trust, collaboration, and shared success.
Need assistance with your contract renegotiations?
Contact us today via lowa@amstlegal.com or +31650608964 to discuss how we can help or book a meeting with us via https://amstlegal.com/appointment.
In the Press: A Conversation with Robby Reggers (English)
In The Press: Dutch Interview with mr-online – legal platform
In the Press: A Conversation with Robby Reggers (Nederlands)
Artikel Mr. Online
Op 15 oktober heeft mr-online (see (link) een interview met Robby Reggers gepubliceerd. Mr. is hét online platform voor juristen, dat ook en maandelijks tijdschrift uitbrengt. Mr. bericht over actuele zaken in de juridische wereld en belicht en becommentarieert deze vanuit een onafhankelijke positie. Mr. richt zich op alle in Nederland actieve juristen en WO-rechtenstudenten.
Onderwerpen van het Artikel
Het is fantastisch dat Robby de kans kreeg om meer te vertellen over zijn ervaringen in Zweden (en Scandinavië). In dit Interview vertelt Robby Reggers over de volgende onderwerpen:
- Terugkeer naar Nederland en plannen voor AMST Legal (naast een kantoor in Zweden nu ook op de ZuidAs in Amsterdam).
- Uitdagingen en kansen bij het opzetten van een eigen kantoor in Zweden.
- Cultuurverschillen tussen Zweden en Nederland.
- Grootste valkuilen bij onderhandelingen en hoe deze te vermijden.
- Tips voor juristen en advocaten die internationaal willen werken.
- Ervaringen met onderhandelen in andere culturen.
Overstapper van de week
Overstapper van de week is Robby Reggers. Reggers heeft AMST Legal in de zomer van 2021 opgericht in Stockholm, maar is deze zomer terugverhuisd naar Amsterdam. Hij is gespecialiseerd in commercieel contractenrecht. Reggers was hiervoor werkzaam als Legal Counsel / Head of Legal bij meerdere bedrijven in de Randstad, en daarvoor advocaat bij Hogan Lovells (Amsterdam). Zie hierbij het ‘Interview met Robby Reggers (AMST Legal) over Onderhandelen in Scandinavië’.
Welkom terug in Nederland! Waarom bent u teruggekomen en wat zijn uw plannen en doelen voor AMST Legal in Nederland?
Dankjewel! Wij zijn als familie teruggekomen naar Nederland door het werk van mijn vrouw. Ook merkten we dat het door de groei van AMST Legal, met veel Nederlandse klanten, de beste keuze was. Het doel is om AMST Legal verder uit te breiden in Stockholm, maar vooral ook in Amsterdam. Dit lijkt zeker mogelijk omdat er veel vraag is naar onze specialiteit: flexibel juridisch advies over het opstellen en onderhandelen van commerciële contracten. Vooral onze expertise met betrekking tot procesverbetering door standaarden, inclusief het gebruik van Legal Tech & AI, is erg in trek.
Wat waren de belangrijkste uitdagingen en kansen die u tegenkwam bij het verhuizen naar Zweden en het opzetten van uw eigen kantoor daar?
De belangrijkste kans die we zagen was de ongelooflijk fascinerende wereld van Scandinavië die voor ons openging. Fantastisch hoe zo een groot en relatief onbekend deel van Europa zo interessant kan zijn. Naast Zweden, hebben we nu klanten van Noorwegen en Finland tot in de Baltische staten. Dat zijn toch echt landen waar ik nooit had verwacht om zaken te doen. Ik ben nog aan het wachten op mijn eerste vergadering in de poolcirkel, maar dat gaat vast lukken.
De belangrijkste uitdagingen waren zonder twijfel het opzetten van een eigen onderneming in Zweden. Het is al ingewikkeld om in Nederland een onderneming op te zetten, laat staan in het buitenland.
Wat waren in uw werk de meest opmerkelijke cultuurverschillen tussen Zweden en Nederland, en kunt u die toelichten?
Zweden zijn erg conflictmijdend, dus dat is wel een sterk cultuurverschil waar je rekening mee moet houden tijdens werken met collega’s, onderhandelen of bij het adviseren. Daarnaast is het belangrijk om te beseffen dat relaties erg belangrijk zijn om zaken te kunnen doen en dat er focus ligt op consensus bij beslissingen nemen. Dit betekent dat processen wel langzamer gaan dan in Nederland.
Wat me het meest verbaasde was dat de Zweden – zoals in Frankrijk – een cultuur hebben van uitgebreid lunchen tijdens de middag. Er zijn veel betaalbare lunch-aanbiedingen of buffetten in de stad waar advocaten, accountants samen met de bouwvakkers lunchen – echt super. Het is ook heel normaal om bij -15 even buiten te gaan wandelen in de sneeuw om te overleggen met een klant of collega.
U biedt ook onderhandelingscursussen aan. Wat zijn volgens u de grootste valkuilen bij onderhandelingen en hoe kunnen professionals deze vermijden?
De grootste valkuilen in onderhandelingen zijn meestal gebrek aan voorbereiding en slecht luisteren en communiceren. Om dit te vermijden benadrukken we vooral in onze trainingen hoe je 1. beter voorbereid onderhandelingen kunt ingaan door deze te verdelen in drie verschillende fases en 2. met kwaliteitsvragen en empathisch luisteren een beter resultaat kan halen bij onderhandelingen – en je niet altijd met een compromis hoeft te komen. Het gaat erom dat je de tegenpartij beter begrijpt.
Wat is uw tip van de week voor juristen en advocaten die overwegen om internationaal te werken of hun eigen kantoor te starten in het buitenland?
Zo vroeg en goed mogelijk de lokale taal leren maakt een enorm verschil in de mogelijkheid tot het vinden van cliënten in het buitenland. Klinkt erg voor de hand liggend, maar het schiet er toch bij de meeste mensen in (inclusief mezelf).
Daarnaast is het belangrijk om een lokaal netwerk op te bouwen. In dat kader heb ik een erg fijne samenwerking gehad met Nederlandse ondernemingsclubs – ik vind bijvoorbeeld de Nederlandse Kamer van Koophandel in Zweden super – en de Nederlandse ambassade. Zorg ook dat je naar zo veel mogelijk bijeenkomsten en congressen gaat. Dit heeft mij enorm geholpen bij het contact leggen met lokale en internationale klanten die banden hebben met Zweden en actief zijn in Scandinavië.
Conclusie
Robby heeft in dit interview kunnen vertellen over zijn ervaringen met het wonen, werken en opzetten van een nieuw bedrijf in het buitenland. bij vragen of gewoon een gesprek over deze ervaring, kunnen jullie altijd contact opnemen met Robby via +31 6 50608964.
U kan ook altijd Robby contacteren voor trainingen (teams of professionals) hoe beter te onderhandelen in internationale context.
How to Negotiate Contracts Faster Before Q3 Ends
Are you struggling to get your contract signed before Q3? As someone who has been working in contract law since 2004, I understand how stressful the last week of the quarter can be. You’re trying to close deals, manage client expectations and meet internal deadlines. Over the years, I’ve refined a few strategies to help speed up the process and keep things moving smoothly during this critical period.
In this article ‘How to Close Contracts Fast Before Q3 Ends’ (a follow up on this article), I will share practical tips I’ve gathered throughout my career.
This will help you negotiate and close your contracts before Q3 ends – whether you’re a legal professional or part of the sales / procurement team.
1. Groundwork: Setting the Foundation for Smooth Contract Closures
Before we get into the last-minute strategies, it’s important to acknowledge that no matter how prepared you are in the final week of the quarter, the real work begins long before that. Over the months leading up to these peaks, the following foundation should be laid out – so you can negotiate contracts faster (and better), and act quickly & decisively when time is of the essence.
The four pillars of better contract processes, developed by AMST Legal, are:
# Create Standard Templates
One of the simplest yet most effective ways to streamline the contract process is to use standardized templates. As I also wrote in this article, when teams work with simple, pre-approved, consistent language, it cuts down on back-and-forth reviews and will greatly improve contract negotiations. You will know exactly what is in each contract, with the right risk profiles and internal teams are trained on using it. If your organization doesn’t already have these, make creating them a priority for the future. It will be a game-changer for your company.
# Set Minimum Value Limits for Negotiations
During these peaks, it will be impossible for legal to help out the commercial teams and review & negotiate all contracts. It is therefore important that teams use the standard templates as much as possible. A great tool for this is setting agreed minimum contract value in the company, also see this article by Ironclad on this subject. For smaller contracts, also consider limiting negotiation points or automating approvals for low-risk items. This has saved me countless hours over the years and allows legal teams to focus on more complex, high-value contracts.
# Improve Internal Communication and Training
Lack of communication is often the reason of delayed contracts. By establishing clear communication channels between legal, sales and management teams, you can avoid last-minute surprises. Regular training sessions also ensure that everyone understands the process and the contract standards, which makes a huge difference when things get hectic at the end of the quarter. Consequently, internal teams will feel more confident when negotiating contracts.
# Implement Legal Tech Solutions
If you set up the above, but processes still need to be improved due to a high volume of contracts, it’s time to embrace legal tech solutions. Tools like e-signature, contract management or AI Contract Review can significantly speed up your workflow and will help you negotiate contracts faster. I’ve seen contracts get stuck for days simply because (i) someone was out of the office and couldn’t physically sign a document or (ii) we couldn’t find the relevant document to sign
2. Prioritize High-Volume and Strategic Deals
As the quarter draws to a close, it’s time to get laser-focused. You simply can’t negotiate all contracts at once, and that is perfectly normal. The key is to prioritize high-volume or strategically important deals. This is where you will get the most return on your time investment.
How to Identify Key Deals
I always ask myself (and my team) two questions at this stage:
- Is this contract actually closing by the end of Q3?
- Is this a high-volume or high-value deal?
If a contract doesn’t meet these criteria, it’s not worth your time right now. You will waste valuable energy chasing and negotiating contracts that can be closed after the quarter ends. Focus on what you can (and must) win now, and push the rest to next quarter.
Managing Distractions
Distractions are everywhere, especially when the pressure is on. This is the time to train yourself (and your team) to stay focused. Make sure everyone is crystal clear: the goal is to close and only negotiate Q3 contracts, nothing else. If it’s not urgent or relevant to Q3, it can wait. This might seem obvious, but it’s surprising how many teams get sidetracked by low-priority tasks during this crunch time.
3. Clear Communication with Clients and Teams
Communication is critical at every stage of a contract negotiation, but it becomes especially clear when deadlines are looming. You need to maintain transparent, open lines of communication – both internally and with your clients.
External Communication
Clients don’t always understand the urgency we feel in the final week of the quarter. That’s why I make it a point to confirm their needs early on, well before the last-minute rush. I’ve found that directly addressing concerns and reiterating the importance of deadlines can push things along. Clients are more likely to act quickly when they understand the background.
If you sense a deal might be slipping to the next quarter, reach out to your client immediately. Often, an honest conversation can be the difference between closing a deal on time or missing the deadline.
Internal Communication
In a busy period like this, internal communication is just as crucial. Make sure your teams are aligned, especially if multiple departments are involved. The last thing you want is a delay because someone missed an internal approval. I usually recommend daily check-ins or updates to keep things moving.
And if a deal is stuck, escalate quickly. There’s no time for prolonged delays when the quarter is on the line.
4. Encourage Team Collaboration
Complex contracts can’t be handled alone – negotiating contracts is a team sport. I’ve learned over the years that collaboration is the key to overcoming obstacles, especially when time is running out.
Breaking Down Silos
Avoid the temptation to work in silos, especially on tricky deals. Bring in your legal, sales, finance, and operations teams as needed. Each department offers a unique perspective that can help you get past obstacles faster. In many cases, a quick group discussion can solve a problem that might take one person days to figure out on their own.
Address Escalation Matters
If a contract is stuck in escalation, resolve it now. Whether it’s a pricing issue or compliance matter, gather the right people and tackle it head-on. Waiting for someone else to make the call will only waste time.
5. Deadline Management
Nothing is more frustrating than having a contract fall through because of a missed deadline. In the final days of the quarter, every deadline matters – whether it’s a signature, a document approval or a client review.
Plan Ahead
Two of the best pieces of advice at the end of a contract negotiation: 1. ask the counterparty how many days they need to get the document signed. Are there internal processes we need to think of? and 2. plan a few days ahead. You never know what might come up in the final days & hours, so giving yourself a bit of extra time can help prevent last-minute panic. Make sure signatures are collected and documents are finalized before the last day of the quarter, whenever possible.
Avoid Costly Mistakes
Missing a deadline – even a minor one – can push a deal into the next quarter. Not only is this frustrating, but it can also have financial implications for your business. Stay on top of dates, and build in extra time for any last-minute reviews or approvals that might come up.
6. Frequently Asked Questions (FAQs)
Q1. What should I do if a deal is unlikely to close by the end of the quarter?
If a deal isn’t likely to close by the end of Q3, communicate it to the relevant teams and deprioritize it. Focus on deals that have a real chance of closing now. Set expectations with clients for the next quarter and move forward.
Q2. How can I speed up communication between teams?
Hold daily check-ins and use tools like Slack or Microsoft Teams to facilitate quick communication. This ensures everyone is aligned and up-to-date on contract status.
Q3. What legal tech tools should I use?
I highly recommend e-signature platforms, Contract Management / Contract Lifecycle Management Tools and AI Review Tools. These tools reduce delays, help automate workflows and make the signing process smoother.
Q4. Should I negotiate terms at the last minute?
This is a subject for a longer article, but at this stage, avoid extensive negotiations. If terms are still being discussed, escalate the decision or consider finalizing the contract as-is and revisiting the terms in the next quarter.
Q5. How do I ensure my team stays focused?
Keep the team aligned on priorities. Regular check-ins can help ensure everyone is working toward the same goal: closing Q3 deals. Delegate non-urgent tasks to be handled after the quarter ends.
Conclusion
As a legal professional that has been through countless quarter-end rushes, I know how stressful it can be. But by following the tips in this article ‘How to Close Contracts Faster Before Q3 End’ will help. Focus on the right deals, maintain clear communication and keep your team aligned. This way, you can close more contracts before Q3 ends. Stay organized, be proactive and you will be able to meet your goals without the last-minute panic.
If you follow these tips, you’ll not only survive the end-of-quarter peak, but you’ll also set yourself up for success in the quarters to come.
Please reach out to us via +31650608964 or send an email to lowa@amstlegal.com if you need more information or advice about this subject.
Don’t Sign That NDA Yet! Understand Your Obligations First
Introduction
Ready to dive deeper into Non-Disclosure Agreements (NDAs)? We covered the basics and key elements of NDA’s in part 1 here and in part 2 here we covered four common clauses like Parties, Definitions and the Purpose of NDA’s . Now, let’s explore the crucial confidentiality obligations for the receiving party in an NDA.
Learn how to safeguard your sensitive information during business partnerships with this Article ‘Don’t Sign That NDA Yet! Understand Your Obligations First’.
Quick Facts
Under NDAs, also called confidentiality agreements, parties agree the following:
- Confidentiality Obligations: keep information secret, use it only for the purpose mentioned in the NDA and don’t disclose it to unauthorized parties.
- Maintain Information Security: implement reasonable security measures to safeguard the confidentiality of the information.
- Exclusions: in certain circumstances the confidentiality doesn’t apply, such as publicly available information or disclosures required by law.
- Destruction of Information: when to return or delete confidential information once the purpose is fulfilled.
Although NDAs generally take precedence over the law, specific laws & regulations may apply. Think specific secrecy laws, the GDPR, employment laws and Trade Secret Regulations.
Confidentiality Obligations of Receiving Party
Limited Usage of the Confidential Information
In an NDA, the receiving party has the main confidentiality responsibilities.
This generally includes using confidential information exclusively for the designated “purpose” in the NDA. See our previous article here where we explain why this is important and how to cover the purpose correctly. Doing so ensures safety of keeping the confidential information secret, and makes the recipient refrain from disclosing it to any third parties.
A well-drafted NDA should explicitly restrict the receiving party from not only directly and deliberately misusing or disclosing confidential information but also from doing so indirectly, negligently, or unintentionally.
Extension of allowed recipients
One of the most important parts of the NDA to pay particular attention to is:
‘Who is able to received the Confidential Information’?
As it will often not only be the parties to the NDA itself who need to receive the confidential information, it is important to extend these confidentiality obligations beyond the receiving party itself.
Most common examples of third parties:
- professional advisor like accountants, consultants or lawyers,
- agents, directors, employees, and
- affiliates
Therefore, ensure that you include very clear definitions of third parties that may receive the Confidential Information and under which circumstances.
Usually these circumstances are that these third parties can only receive the confidential information if they have:
- a need to know in connection with the Purpose (as defined in the NDA), and
- the legal obligations of confidentiality and non-use with respect to the Confidential Information substantially similar to the obligations of the Receiving Party under this Agreement.
Maintain Information Security
Realizing that it is important to also protect the security of the confidential information shared is crucial.
If you receive confidential information it is important to understand and agree that it is are required to implement reasonable security measures. This includes technical, physical and organizational measures safeguarding the confidentiality of the information and prevent unauthorized access or disclosure.
Exceptions from confidentiality obligations
Typically, NDAs include certain exceptions to the confidentiality obligations imposed on the receiving party.
Public Knowledge
If the information becomes publicly available (without breach of the NDA), the confidentiality obligations cease to bind the recipient and their affiliates.
Prior Knowledge
The entry of the information into the public domain (without a breach of the NDA) also releases the recipient and their affiliates from confidentiality obligation
Third-Party Disclosure (Including Affiliates)
When the recipient receives information from a third party who has the legal right to disclose it, they no longer need to maintain its confidentiality.
Legal Requirements
An important exception allows the recipient, affiliates, or third parties to disclose the confidential information through a court order or governmental request. Typically, the discloser should be notified before the information is disclosed to comply with the legal process.
Return/destruction of information
When the purpose of sharing confidential information is achieved, the disclosing party may request the return of the disclosed confidential information or the deletion/destruction of the confidential information if it remains in the possession of the receiving party.
For example, the disclosing party can request the receiving party to return copies, samples, and any other tangible materials containing confidential information; and to delete/destroy digital data containing confidential information.
In the current complicated IT setup of most companies, completely eliminating data can be either highly challenging or cost-prohibitive. For this reason, we advise to add wording similar to: parties agree
Specific laws might apply
Although NDAs generally cover confidentiality obligations, it is important o realize that specific laws and regulations may override or complement them in certain situations.
Examples are: secrecy laws, the GDPR, employment laws, and Trade Secret Regulations.
These laws & regulations can impose additional requirements or exceptions so do consider these obligations when agreeing or interpreting an NDA to ensure full compliance. Also see this article from Hogan Lovells on this subject.
Conclusion
While the title of this article ‘Don’t Sign That NDA Yet! Understand Your Obligations First’ might be a bit dramatic, it underscores an important point: NDAs are often underestimated.
Understanding confidentiality obligations under NDAs, particularly for the receiving party, is crucial.
It’s essential not to jump into signing these agreements without fully understanding the potential impact on your business and your ability to operate freely.
By carefully reviewing and understanding your obligations, you can protect your interests, avoid costly legal disputes, and ensure a successful partnership.
Please reach out to us via +31650608964 or lowa@amstlegal.com if you need more information or advice about this subject.