Introducing Paralegal Services – What is a paralegal and why do you need one?
What exactly does a paralegal do? How are paralegals different from lawyers or legal counsels? If you run a business, lead a sales or procurement team, or manage in-house legal operations, understanding the answer can save you both time and money. In the legal profession, there are many different roles. Most people are only familiar with lawyers and legal counsels. However, there is an additional role that everyone should know about. It is an important profession that is often misunderstood: paralegals.
Although the role is gaining in popularity, there are many misconceptions or questions what they do exactly and which paralegal jobs are most popular. Common questions we also hear are: “Shouldn’t we refer to the role as paralegal legal assistant or paralegal assistant”? Also: “Should I hire a paralegal or lawyer for this” or “Where can a paralegal help me here”. As we often see and hear a need for them, we wrote this article to answer these questions. We will also cover the difference is between a paralegal vs lawyer or legal counsel. Hopefully, this will clear any confusion you might have about what paralegals are and what they can do.
“Paralegal services involve trained professionals who handle delegated legal tasks such as contracts, compliance and corporate records, allowing lawyers and business teams to focus on strategy.”
What we will cover
- What a paralegal is,
- The role of paralegals in business and legal operations
- Real-world examples of the benefits of paralegal services for business and legal stakeholders,
- Common challenges when companies overlook paralegal support, and
- Why paralegals are critical in modern business environments.
What is a paralegal?
The role of Paralegals in Business and Legal Teams
The easiest way to explain what a paralegal does is to describe the roles they combine. In practice, paralegal services merge elements of several professions and skills of administrative assistants, junior / mid level legal counsels and accounting assistants. Thus, the different roles are usually as follows:
- Administrative assistance: ensuring documents or corporate records like Corporate Housekeeping, Powers of Attorney and UBO filings are accurate and accessible. We have seen that paralegals are perfect additions to the legal team to be the person responsible for these documents. For further information about UBO, see our article “Ultimate Beneficial Ownership (UBO) Explained – What is it and How to Create a Process That Works” here).
- Legal secretary: A legal secretary focuses on organizing case files, preparing correspondence, formatting legal documents, scheduling meetings, and coordinating filings for lawyers or partners in a law firm.. Paralegals build on this role with deeper legal knowledge and greater autonomy.
- Junior legal counsel: in our practice, this means drafting contracts, proof-reading agreements, conducting legal research, rolling out templates (like order forms and terms and conditions) and flagging potential risks for lawyers to address. Generally speaking, junior legal counsel can basically do all tasks that the other legal counsels in the legal team are responsible for.
- Accounting assistant: Many paralegals also support the financial and compliance functions that intersect with legal work. This may include tracking payment obligations, monitoring contract deadlines, supporting bookkeeping related to legal spend, and managing compliance tasks that influence financial reporting or audit preparation.
However, the true value of a paralegal lies in how these functions come together. Paralegals often describe themselves as “the spider in the web,” coordinating across departments to create structure and efficiency. This image captures their central role in connecting legal, commercial, and financial processes.
Paralegal Services in Europe
In Europe, paralegal services are less visible outside legal circles, but their importance is growing. Many different stakeholders can benefit with a paralegal on the team, which we will elaborate on in the following. Although they do play a crucial role, lawmakers in the Netherlands and Sweden have not established a general definition or common description of the role. In the United Kingdom however, the National Association of Licensed Paralegals (NALP) define a paralegal as:
“A person who is educated and trained to perform legal tasks but who is not a qualified solicitor or barrister.”
NALP defines the role of paralegals in a way that also fits the Netherlands and Sweden, as they do assist lawyers and legal counsel with legal tasks. However, the role can be broader than that and most paralegals in the Netherlands and Sweden have higher education backgrounds.
See NALP’s website and further information here.
Education in the Netherlands and Sweden
In most European countries, “paralegal” is not a protected title, which means professionals can enter the field through different routes. Still, most have legal training that equips them for corporate and law firm roles.
In the Netherlands, it is common to study law at various level, from college to university. Each route provides varying levels of legal knowledge and practical skills, but all can lead to roles as juridisch medewerker (legal assistant). As we have seen in many corporates, these roles are a great stepping stone to advance in their career and grow to other roles in the company.
In Sweden, common paths include starting as a juristassistent after upper secondary school, completing a two-year higher vocational program with internships, or studying law at university while gaining work experience.
As a result, both Dutch and Swedish paralegals bring a mix of academic training and practical skills, making them adaptable resources for sales teams, procurement managers, and in-house counsel.
Paralegal Services in the USA
In the US, “paralegal” is a well-known profession and formal training has been on-going since late 1960s when they were acknowledged by the American Bar Association (ABA). The contemporary definition of a paralegal according to the ABA is as follows:
“A paralegal is a person, qualified by education, training, or work experience who is employed or retained by a lawyer, law office, corporation, governmental agency or other entity and who performs specifically delegated substantive legal work for which a lawyer is responsible”.
See the ABA’s website here and further information of the historical background here.
In other words, a paralegal in the US is working with law matters delegated by the responsible lawyer. Although the U.S. lacks nationwide regulation, California sets specific requirements for paralegals.
See the American Association for Paralegal Education’s website here and the National Federation of Paralegal Associations’ website here for more information.
What Paralegal Services contribute with to Business and Legal teams
Why Paralegals are Essential
They provide much more than what an administrative assistant can due to the bachelor degree of law obtained. Taking advantage of paralegal services leads to structured legal support that bridges the gap between routine documentation and high-level legal support. That is why it is very common to see many of them working at law firms or legal teams (inhouse legal). So, when considering hiring a lawyer or legal counsel, keep paralegals in mind too.
Why you should keep paralegals services in mind when considering legal resources, there are two main reasons. Firstly, it strains legal fees. Either by having the paralegal assist your legal counsel, relieving them of costly work or by letting the paralegal do preparatory legal work that does not require a legal counsel or lawyer. Secondly, using a paralegal streamlines processes (with sales, procurement, compliance etc.) which creates possibility for higher revenue while staying legally protected.
What to Expect from Paralegal Services
To create an even clearer picture of how paralegal services can contribute to your company’s or law firm’s day-to-day work, let us dive into the specifics. Generally, the limitations of what paralegals can do are vague from a legal point of view due to the lack of regulation. Naturally, certain tasks are only possible for lawyers to do, but that does not mean that they cannot assist in the beginning or do a quick check towards the end.
In sum, they typically handle the time-consuming preparatory work for lawyers or legal counsels. Responsibilities for paralegals cover a range of documents that sit at the foundation of every business.
8 examples Where to Use Paralegals
To name a few things that is part of the work of paralegals, it normally includes:
- making lists of e.g., debtors and creditors, stakeholders, competitors etc,
- structuring and proof-reading contracts and documents like order forms, NDA’s, power of attorney’s, employment contracts, terms and conditions, routine supplier or customer agreements etc,
- preparing, drafting and filing legal and corporate documents (i.e. corporate housekeeping and UBO),
- sorting and value evidence for clients,
- conducting legal research on relevant topics,
- drafting contract templates and client instructions and/or information,
- rolling out new order forms, terms and conditions, templates and information to clients,
- assisting in compliance matters (like data privacy, data protection, trade control etc).
While lawyers or legal counsel naturally should review some of these documents in the end, paralegals can do the initial check. By doing this, they can provide a bridge between the different contract processes of a company, At the same time, this brings structure and lets the lawyer or legal counsel focus on complex questions. This opens possibilities and streamlined yet cost-reduced processes. In short, paralegals are a great complement for legal teams at companies of varying sizes.
Advantages of hiring a paralegal
Practical Benefits
We have discussed what a paralegal is and examples of what can be expected from their services, but now we will pinpoint exactly how your business or law firm can benefit from hiring such a legal professional. To highlight the various benefits, we will delve into this below.
Business impact: speed, clarity, cost- and process efficiency
Companies often struggle to balance commercial speed with risk management. Taking advantage of paralegal services and integrating that into company operations benefit by bridging this gap. This enables faster contract cycles, better communication between departments and lower overall legal costs. In turn, sales and procurement teams no longer have to wait for routine legal tasks to be completed by an expensive senior counsel. Instead, they receive timely cheaper support from a paralegal that keeps business moving, without sparing on up-to-date legal aspects and compliance.
A Few Examples of Advantages in Business
In business, this approach reduces:
- missed compliance deadlines that slow funding,
- deal delays that frustrate sales cycles and
- inconsistent terms that increase supplier risk.
This structured process reduces likelihood of later disputes and streamlined processes since terms are consistently applied and properly documented.ior legal counsel focus on complex questions, opening possibilities and streamlined yet cost-reduced processes.
In addition to hiring a paralegal, businesses can heavily reduce their contract processes by applying our tips of 10 ways to improve your contract processes. Access some of our published articles on this topic below:
- here to know why you should focus on improving your contract templates,
- here to get tips on how to manage your contract templates,
- here to see the benefits of strong collaboration between legal and other departments, and
- here to learn why it is crucial to let your legal counsel lead the work of improving contract templates.
Furthermore, the benefits of paralegal services are not limited to improved business processes and results. It is also beneficial in terms of legal impact and aid for the legal counsel in charge.
Legal impact: improved structure, better scalability
From a legal perspective, paralegal services reduce the likelihood of errors and disputes as they go into the detail of the documentation and contracts. In turn, records are complete and consistent which helps companies scale up with confidence. When expanding into new markets or preparing for acquisition, well-maintained documentation reduces risk and positions the company as a professional, trustworthy partner. At the same time, when routine legal work is relieved from the legal counsel, they can focus on the legally complex contracts. Allowing this creates the ideal situation for successful legal and business outcomes.
Practical Challenges when Paralegal Support is Missing
Without a paralegal, companies frequently face avoidable bottlenecks. For example, contract approvals may stall because no one organizes the drafts or tracks deadlines. Corporate housekeeping tasks such as annual shareholder resolutions can be overlooked, creating compliance risks and delay. In many cases, sales teams resort to reusing outdated templates or making ad hoc edits, which leads to inconsistencies and legal vulnerabilities. This lack of structure increases costs in the long run.
Opportunities when handled well
When businesses integrate paralegal services into their workflow, they gain both speed and reliability. Contracts move faster through review cycles, because then the right version is used, signatures are tracked, and key terms are flagged for lawyer/in-house counsel input only when necessary. In addition, corporate records remain current, so audits, compliance checks, or investor requests can be answered immediately.
The result is a smoother collaboration between business and legal stakeholders. Procurement managers know that terms are consistent, CFOs trust that filings are in order, and founders gain the confidence that their company is legally prepared for growth or sales increase.
Key takeaways
- Paralegals provide essential legal support that saves time and cost for businesses of all sizes.
- Companies without paralegal support face bottlenecks, inconsistent contracts, and compliance risks.
- Integrating paralegal services with general-counsel services creates smoother processes for sales, procurement, and legal teams.
- Paralegal services are beneficial for companies within any industry and law firms.
- Businesses that invest in paralegal support gain efficiency, clarity, and legal readiness for growth and sales increase.
Conclusion & next steps
Paralegal services are no longer optional for growing businesses. They are a practical solution to reduce costs, improve compliance, and ensure contracts move through the pipeline without delay. At the same time, they are a great investment to ensure proper assistance to your in-house counsel. Whether your company is closing tech deals, managing supplier relationships, or preparing for an investment, paralegals provide the structured legal support you need.
At AMST Legal, we combine senior legal counsel with skilled paralegal services, offering clients the right mix of strategy and execution. Our work spans individual projects as well as interim arrangements with set hours each week, giving you flexibility and reliability. We offer flexible paralegal services and senior legal counsel services in Stockholm, Sweden and Amsterdam, the Netherlands.
👉 Visit amstlegal.com to learn more or book a consultation today here or email lowa@amstlegal.com.
Why Order Forms Are Essential in Tech & SaaS Contracts
When we support clients in sales or procurement negotiations, I often get the same reaction: “Why would you get involved in the Order Form? Isn’t that just the cover page?” It isn’t – It is where the main parts of the contract are agreed, referring to the terms and condition relevant for the contract. Let us start with explaining you: what is an Order Form – showing you a free order form. Next, we will explain why Order Forms in SaaS and Tech are important. Contact us for an order form template you can use for your business.
In Tech and SaaS contracts, the Order Form is where the deal becomes clear. It states what is being purchased, the price that applies, and the term that governs delivery. Many teams rush to the Master Service Agreement (MSA) and miss that most commercial disagreements start with an incomplete or vague order form. When the order form is specific, sales cycles move faster, procurement comparisons become straightforward, and legal reviews stay focused on real risk rather than avoidable ambiguity.
What we will cover
- We will first explain what Order Form is
- Why business teams should treat order forms as the commercial source of truth
- How lawyers keep MSAs steady while order forms and Product Terms handle change
- The contract layers: Order Form → MSA → Product Terms → Release Notes → User Terms/EULAs
- Practical examples from SaaS, FinTech, AdTech, and software licensing
- The advantages of clear order forms for speed, scalability, and lower dispute risk
What is an Order Form?
The Commercial Core of Your Deal
An Order Form is the final commercial document that captures exactly what you are buying, at what price and under what terms. It is the main body of the contract that refers to the General Terms and Conditions and other relevant terms. While the MSA sets your legal foundation (as explained below), the Order Form handles the business specifics. It mentions which modules you’re purchasing, how many people can use the products, what your pricing looks like, and what the term is.
Why It Matters More Than You Think
Most commercial disputes don’t start due to complex legal language. Conflicts usually arise from vague Order Forms that leave pricing mechanics unclear. Smart procurement teams review these line-by-line because that’s where the real cost drivers live. For sales teams, a precise Order Form means fewer follow-up questions and faster closes. The (example) template Order Form shown in the visual below demonstrates how clear commercial terms create scalable frameworks that support business growth while keeping legal friction minimal. Contact us if you would like to receive the full Template in MS Word.
The business team’s perspective
Order form scope, price, and term in SaaS contracts
For sales and procurement, the order form is the single page that answers core questions: what modules or services are included, which users or environments are covered, and how pricing is calculated. In SaaS, that often means defining seats, API calls, storage, or specific feature bundles. It should also state currency, billing interval, and start date, because these elements drive forecasting and budgeting. When the order form captures these points precisely, account teams avoid re-explaining commercial terms later.
Renewal and pricing mechanics buyers look for
Procurement teams read renewal and pricing clauses first, since those parts define cost over time. Therefore, the order form should set the initial term, renewal type (auto-renew or opt-in), notice periods, and any indexation or tiered pricing. If usage pricing applies, the order form should include the metric, the threshold that triggers higher tiers, and how overages are billed. Clear mechanics reduce invoice disputes and help both sides model the total cost of ownership.
Common pitfalls when the order form is vague
Problems arise when the order form lists a product name but not the components included, or when it mentions a discount without stating the list price it applies to. Ambiguity also creeps in when pricing changes without notice. To avoid this, attach a dated price table or include a URL with a “snapshot” date and a change control note. Consequently, future changes do not rewrite the past deal.
The lawyer’s perspective
Contract layers explained
Lawyers design tech agreements as layers. The MSA is the legal foundation: liability, IP ownership, confidentiality, governing law and data protection (with link to a DPA) are mentioned here and should change rarely. The Order Form is the commercial record for this transaction: scope, price, term, invoicing, and special conditions tied to this customer. Product Terms are modular schedules for service levels, security, data processing, or feature-specific rules; they can evolve with the product through versioning.
Where Release Notes fit and what they should contain
Release Notes inform customers about new features, changed behaviors, and deprecated functionality. They should explain what changed, when it changed, and whether customer action is required. Although release notes are not a substitute for contract amendments, they support Product Terms by giving timely context and preserving trust. As a result, product teams can move faster without surprising customers.
User Terms/EULAs—daily use rules and acceptance
User Terms or EULAs govern daily use: acceptable use, account rules, and end-user responsibilities. Vendors typically present them at login or installation, and acceptance occurs through click-through or continued use. Because they sit closer to the product, they handle operational details that do not belong in the MSA. Meanwhile, the order form points to these terms so all documents align.
Practical examples from tech contracts (SaaS, FinTech, AdTech, licensing)
FinTech modules and compliance pricing
A FinTech provider sells “Payment terminals,” “Cards” and “Reporting” modules and/or software. The MSA holds the general legal terms, including responsibilities, liability caps and compliance warranties. The order form mentions the products, services, modules and defines e.g. usage tiers for transactions. Product Terms include specifics about the products and services. Therefore, adding the “Reporting” module later only requires a new order form, not a new MSA.
AdTech data use and campaign terms
For AdTech where companies agree that the Customer can place ads on certain platforms, like Google, Facebook, TikTok and Reddit, the following applies. Such a platform’s MSA covers IP, Confidentiality, Compliance and data ownership. The order form sets campaign spend, covered countries, pricing of the usage and the term. Product Terms describe permissible data processing and retention periods. API terms define how data is shared. Consequently, procurement can compare campaigns easily while legal certainty remains intact.
Software license scaling and feature updates
For a software license agreement, the MSA also covers IP ownership, confidentiality, liabilities and warranties. The order form defines license metrics (payment per user, per device, or per core), regions, and support level. Product Terms set service levels and maintenance windows. When new features launch, release notes describe them, and a short amendment (or new order form) adds the features to the customer’s bundle.
Advantages of clear order forms for sales, procurement, and legal
Speed, comparability and lower dispute risk
A precise order form shortens negotiation time because it answers commercial questions upfront. Procurement can compare offers line-by-line; sales can set accurate expectations; finance can invoice without guessing. Moreover, clarity reduces scope disputes and credit-note requests after go-live.
Scaling via new order forms – not new MSAs
As customers grow, you should add modules, users, or regions through additional order forms. This approach avoids reopening liability or IP terms and keeps the legal backbone stable. In addition, standardized order forms help revenue teams expand accounts without re-educating stakeholders. Also see this article “Use Terms & Conditions where possible” we wrote about this subject covering how you can win time by using Order Forms referring to T&Cs..
Typical Contractual set-up of an MSA
Details differ but Same Setup For Most Tech Contracts
The confusion between MSA vs Product Terms vs User Terms (and where Release Notes fit in) is something I see all the time in SaaS/software negotiations. If you’re doing research across vendors, it is clear that there are differences. Each vendor uses different names and structures, but the pattern is the same.
Typical Contractual Setup
MSA (or Customer Agreement / General Terms)
The legal backbone (risk allocation, liability, IP, governing law).
Order Form (Order, Insertion Order, Subscription Order)
The commercial record (what is being bought, pricing, term).
Product Terms (sometimes called Service-Specific Terms / Product Annexes)
Service-specific rules, SLAs, DPAs, uptime, feature use restrictions.
User Terms / EULAs
The general “rules of use” the end-user accepts (click-through at login/download), often more operational.
Release Notes
Not contracts in themselves, but linked to Product Terms or documentation. They describe changes in features or performance. Some vendors incorporate them by reference (‘the service may change as described in Release Notes’).
Clarity is key – Which Questions to Ask?
When the documents above are used and applicable, please ensure that you ask the following questions as a buyer / customer. Many discussions arise afterwards as to the applicability of these documents. What it all comes down to is whether you as a seller can prove that you have adequately informed the buyer of relevant terms.
- Where are each of these documents published?
- Who gets notice when they change?
- Which ones bind the customer vs the end-users?
- Are Release Notes purely informational, or do they legally modify the service?
Key takeaways
- Treat the order form as the commercial source of truth.
- Keep the MSA stable; place change in Order Forms and Product Terms.
- Use Release Notes and User Terms to manage product behavior and daily use.
- Define renewal, pricing mechanics, and usage metrics clearly to prevent disputes.
- Add growth through new order forms rather than new MSAs.
Conclusion & call to action
A careful design makes tech and SaaS deals easier to sell, buy, and manage. Mainly, it is all about flexibility and clarity. It gives sales and procurement a clear document to rely on while the MSA protects core legal risk.
Also see the following articles on the importance of Order Forms from Contract Nerds and Ironclad.
If your contracts feel harder than they should, AMST Legal can help you set up this layered structure and train your teams to use it well. To discuss your current setup or a specific deal, book a call here
The term ‘Order Form’ is most commonly used in Tech/SaaS. Other words for Order Form are:
📍Order / Ordering Document
📍Subscription Order / Service Order
📍Work Order (more traditional/industrial)
📍Insertion Order (IO) – common in AdTech/Media buying
📍Statement of Work (SOW) – for project-based professional services
📍Purchase Order (PO) – buyer-issued, especially in procurement-heavy industries (mostly as confirmation of the Order Form)
📍Quote / Quotation – becomes binding when signed/accepted
📍Service Agreement
Why You Need Better Terms & Conditions – 80 % Template Rule
Contract Templates and Terms & Conditions (T&Cs) are more than a legal formality. As we always say: “Don’t underestimate the importance of contracts – including Terms and Conditions”. Contracts are the basis of all business you do with your customers and suppliers. They set the foundation for how you operate, protect your business from disputes and build trust with clients. Yet many companies struggle to streamline their contracts and end up juggling a mess of documents. One way to simplify—and speed up—your contract workflow is by adopting the 80% Template Rule. This means that you should aim for having contract standards (contract templates) of at least 80% of the contracts you sign.
This principle states that around 80% of your agreements can rely on standardized templates, while 20% remain flexible for high-value or complex deals. In this article ‘Why You Need Better Terms & Conditions – 80 % Template Rule’, we’ll explore how this approach strikes the perfect balance between efficiency and adaptability, saving you time and money without compromising on legal safeguards. It is part of our 9 practical solutions to solve Contract Standards that Fail, see our article on this here and our Linkedin post on this subject.
What We Will Cover
- Understanding the 80/20 Template Ratio Rule
- Deviations from the 80/20 Rule: When Standardization Needs Adjusting
- Strategic Advantages of Contract Template Standardization
- How Terms & Conditions Fit into the 80% Model
- Suggested Set-Up for Standard Templates
- Examples of the 80/20 Rule in Action
- Applying the 80% Rule Beyond Sales & Procurement
- Conclusion: Finding the Ideal Contract Balance
1. Understanding the 80/20 Template Ratio Rule
Defining the 80/20 Balance
The 80/20 Template Rule suggests that about 80% of your contracts—often NDAs, routine purchase orders, and standard service agreements—can be effectively managed using pre-approved templates. These documents share consistent language, key legal protections, and known risk parameters.
The remaining 20% represents more complex or strategic agreements requiring extra customization. This might include multi-year government contracts with compliance mandates or large-scale software licenses where intellectual property rights need special attention.
Why 80%? Most deals share similar terms and risk profiles, so standardizing them eliminates tedious drafting, ensures legal consistency, and accelerates negotiations.
Our Recommendation
We advise clients – especially in tech and service-focused industries – to create shorter T&Cs for everyday deals (the 80%), while reserving longer, more detailed contracts for enterprise-level customers or specialized projects (the 20%).
It is no surprise that major companies like Microsoft, AWS, Booking.com, Salesforce, and ServiceNow follow a similar playbook. Their user agreements are concise and straightforward, but when a large corporation with unique needs comes along, they switch to a more comprehensive legal framework.
In this article we focus on Sales & Procurement Contracts, but we also recommend to improve your templates of other contracts or legal documentation, like:
- Confidentiality Agreement (NDAs)
- Employment Contracts and Consultancy / Contractor Agreements.
- Corporate Documents like Board and Shareholders Resolutions.
Training Sales and Procurement Teams
It is imperative to train your Sales and Procurement teams to use your own templates as much as possible. While it might feel easier to cave in and work off a counterparty’s contract, that typically leads to inconsistent terms, lengthier negotiations, and higher legal risks. Teaching your teams good negotiation skills and emphasizing the benefits of sticking to your standardized documents will:
- Preserve the efficiency gains from the 80/20 approach
- Reinforce consistent legal protections across deals
- Minimize back-and-forth revisions that slow down transactions
Admittedly, this isn’t always easy. But the payoff in faster deal cycles and fewer legal snags more than justifies the effort spent on training.
2. Deviations from the 80/20 Rule: When Standardization Needs Adjusting
Industry-Specific Variations
- Tech & SaaS Companies:
Subscription-based models often push standardization above 80%. Many SaaS agreements share the same billing cycles, uptime commitments, and data protection clauses. - Bespoke or Regulated Sectors:
Construction, healthcare, and government-related projects can require detailed specifications and stringent compliance checks. Consequently, more contracts need unique clauses, tipping the balance closer to 70/30 or 60/40.
Finding Your Ideal Ratio
Each business has its own risk tolerance, product complexity, and regulatory pressures. Some firms can standardize a higher percentage of deals, while others need more customization. Staying alert to market changes and evolving client needs will guide you on when to adjust your ratio.
3. Strategic Advantages of Contract Template Standardization
Cost Efficiency & Risk Mitigation
- Lower Legal Costs: Less time drafting unique clauses for every contract.
- Unified Risk Controls: A single vetted template helps avoid oversights like missing indemnity or outdated compliance provisions.
Example: A mid-sized tech firm standardized all routine SaaS contracts. They cut legal spending by 30% and reduced negotiation timelines, thanks to well-vetted core terms.
Strengthening Business Relationships
- Transparency & Trust: Straightforward T&Cs reassure clients there are no hidden pitfalls.
- Faster Onboarding: Routine deals finalize more swiftly, giving your team more time to foster the client relationship itself.
Example: An e-commerce retailer merged shipping, returns, and warranty policies into one Terms & Conditions document. Customers found it simpler to review, boosting repeat purchases.
Resource Optimization
- Reduced Bottlenecks: Standard approvals mean fewer contracts clogging Legal’s inbox.
- Empowered Teams: Sales and procurement can self-manage standard deals without waiting on constant legal oversight.
Example: A global logistics company unified its supply-chain terms. Roughly 80% of vendor contracts sailed through automatically, letting the legal team focus on high-stakes negotiations.
Competitive Edge for High-Value Negotiations
- Tailored Attention: By freeing up resources on routine deals, your legal experts can concentrate on mission-critical contracts.
- Scalability: A well-structured template system handles more deals with minimal friction.
Example: A pharmaceutical firm maintained standard T&Cs for routine supply arrangements, leaving more time for specialized contracts requiring complex compliance clauses (e.g., for clinical trials).
4. How Terms & Conditions Fit into the 80% Model
T&Cs typically address recurring elements: payment schedules, liability limits, intellectual property, confidentiality, and dispute resolution. Since these components recur in most contracts, T&Cs are prime candidates for template-based management.
Shorter T&Cs work well for your mass-market or smaller deals, covering the essentials but skipping excessive detail. Larger or high-stakes deals often need additional clauses—such as robust termination rights, performance metrics, or compliance with specific regional laws. This flexible approach preserves efficiency for typical deals while offering room for customization when the stakes are high.
In the next paragraph we will explain what kind of T&Cs are suggested and which set-up works best.
5. Suggested Set-Up for Standard Templates
A highly effective way to organize your standard T&Cs is by establishing a Master Services Agreement (MSA) that references related documents—like a Data Processing Agreement (DPA), AI Terms, or specific policies such as a Data Deletion Policy. A crucial part of this architecture is having an Order Form that seamlessly ties everything together.
- MSA: Lays out overarching legal terms (liability limits, governing law, dispute resolution).
- Referenced Docs: DPA, AI Terms, or other policies that expand on specific obligations (e.g., how data must be handled or deleted).
- Order Form: Serves as the front-facing commercial document where you list products, services, or solutions (with pricing and timelines). This form explicitly refers back to the MSA and other relevant documents.
This setup works perfectly for Tech, Marketing, and Renewable Energy (like wind-turbine contracts). For smaller deals, you might rely on a concise MSA and a single-page Order Form. For major contracts with enterprise clients or larger wind-turbine installations, you can attach more detailed policies or custom clauses. Either way, your commercial process runs more smoothly because every party understands how each document fits together.
6. Examples of the 80/20 Rule in Action
SaaS Subscription Services
A CRM software startup realized nearly all its contracts centered on monthly billing, data privacy, and uptime guarantees. They folded these key elements into a master SaaS agreement template. Only enterprise-level customers needed additional clauses for advanced reporting features or custom security provisions. Once implemented, the company was able to reduce the average negotiation time from 2,5 month to 3 weeks.
Construtech SaaS Business
A SaaS provider offering project management tools to construction companies struggled with too many deviations. Each Order Form and set of T&Cs looked different, confusing potential customers and slowing down deal cycles. By adopting a single, streamlined template for 80% of contracts—focusing on recurring terms like data hosting, monthly billing, and software uptime—they cut drafting time in half. Only complex enterprise deals demanded the extra 20% customization, freeing up Legal to handle bigger clients more effectively.
Renewable Energy Maintenance Contracts
A wind-turbine services firm had been too lenient in accepting external contracts, leading to inconsistent obligations and renewal terms. Small deals would still get bogged down in counterparty paperwork. After training their Sales and Procurement teams to use the internal template for routine maintenance agreements, they introduced a short-form contract for smaller deals and a longer form for large-scale, multi-year engagements. This switch sped up negotiations, saw more deals closed per quarter, and cut the legal team’s workload on repetitive contract reviews.
Manufacturing & Supply Chain
A consumer electronics manufacturer was dealing with countless supplier agreements. By centralizing payment terms, quality standards, and delivery timelines into a uniform T&Cs document, they standardized 80% of the vendor contracts. Specialized orders—like cutting-edge chipsets—fell into the 20% that needed bespoke clauses.
7. Applying the 80% Rule Beyond Sales & Procurement
Although this article focuses on Sales & Procurement Contracts, the 80% Template Rule can also make a big impact on other types of legal documents, including:
NDAs (Confidentiality Agreements)
NDAs are the prime example of commercial documents that should take the least time to negotiate and sign. Great templates, including playbooks will be a great help when reducing timelines to finalize NDAs.
Employment Contracts
Instead of creating a new agreement from scratch for every new hire, build a standardized template addressing core terms like job role, compensation, confidentiality, and restrictive covenants. Tailor only where specific senior-level or specialized positions call for it.
Consultancy/Contractor Agreements
For external consultants or freelance contractors, a streamlined template can outline payment terms, scope of work, and intellectual property rights. Unique projects involving complex deliverables may need additional clauses, but many routine engagements can run on the same template.
Corporate Documents
Board Resolutions
Repeated decisions, like approving annual budgets or routine transactions, can follow a simple, standardized structure.
Shareholders’ Resolutions
Common shareholder actions (e.g., reappointing directors, authorizing certain business activities) often don’t need a custom form each time.
Other Governance Documents
Power of Attorney templates for the company.
Opportunities for consistency
Using the 80/20 principle for these areas can save you time and help maintain consistency across all your legal documentation, not just in sales or procurement. By standardizing the bulk of your corporate and employment agreements, you minimize repetitive legal work and preserve specialized attention for pivotal, high-risk decisions or hiring situations.
Conclusion: Finding the Ideal Contract Balance
Mastering the 80% Template Rule and focusing on standards isn’t about cutting corners. It’s about optimizing contract management to align with your overarching business goals. By maintaining shorter T&Cs for routine deals, you reduce negotiation time and safeguard legal consistency. You then keep a 20% buffer for the truly important or complex agreements, ensuring they get the personalized attention they deserve.
Key Takeaway: Standardize where you can, customize where you must. The 80% Template Rule provides a proven roadmap for managing a high volume of similar contracts while preserving the flexibility to address unique or high-stakes scenarios. By training your Sales and Procurement teams to champion your own templates, you maintain control, cut legal overhead and close deals faster. As we have seen in many companies, this will give you a competitive advantage.
Contact us
If you are ready to transform your contracts, we’re here to help. Whether your primary focus is implementing more Templates or the next step how to leverage Tech & AI, every organization can benefit from more streamlined, flexible, and secure contracts. For further guidance on improving contract templates, managing negotiations, and optimizing related processes, reach out via lowa@amstlegal.com or book an appointment with Robby Reggers here.
4 Important Reasons Contract Standards Fail and 10 Practical Solutions
Contracts – for example Master Services Agreements, Customer Agreement or Terms & Conditions – are the backbone of virtually every business transaction. The best way to have the signing process run smoothly is by using contract templates.
For example, for all these professionals, contracts are an essential part of their work:
- a sales professional sealing a new deal;
- an entrepreneur looking for funding;
- a procurement specialist involved in the negotiation of vendor contracts; or
- a legal professional tasked with protecting company interests
By clearly outlining terms, responsibilities, and expectations, great contracts build trust, mitigate risks and keep business relationships running smoothly.
However, contracts can also become a source of complexity. Many companies desire that a new product, service, or partnership requires its own unique contract language. This can quickly turn into an administrative and legal bottleneck if not managed properly. This is why smart organizations turn to contract templates. When thoughtfully designed and regularly updated, these templates streamline contract creation and negotiation, saving both time and resources.
Contract templates are only as good as the process behind them. If they’re too long, packed with dense legal jargon, or buried in a repository that nobody can find, even the most well-written templates won’t make a difference. That’s where this article series comes in. It will help you craft contract templates that really accelerate deals while protecting your organization’s interests. We will first start with the ‘Most Important Reasons Contract Standards Fail and Practical Solutions’.
What We Will Cover
In this introductory article, we will explore the value of using contract templates and highlight key pitfalls that can undermine them. We will then examine the potential consequences of poorly managed templates and, finally, demonstrate the benefits your business can gain by developing modern, easy-to-use contract templates.
Here’s a quick overview of what you can expect:
- Why We Need (Better) Contract Templates
We’ll discuss why organizations of all sizes and industries should focus on improving their templates. Examples will range from standard Non-Disclosure Agreements (NDAs) to specialized industry contracts like AI software licensing or wind turbine supply agreements. - Common Issues with Contract Templates
We’ll identify the biggest challenges that derail template usage, from outdated clauses to complicated language that sales teams struggle to understand. - Consequences of Contract Template Issues
We’ll look at how these problems can delay deals, increase risk, and strain business relationships. - Results of Having State-of-the-Art Templates
We’ll highlight the positive impact of streamlined, clearly written, and easily accessible templates—such as faster negotiations and reduced legal bottlenecks. - Real Life Examples of Contract Optimization
- How to Improve Your Contract Standards & Templates
We’ll draw on two decades of professional insights into how companies achieve the best outcomes and keep improving their contracts over time.
This article sets the stage. The upcoming series of articles, called “10 Tips You Need to Know to Improve Your Contract Templates,” will dive deeper into each tip – see below the full list of tips. This will offer you practical steps to help you develop contract templates that truly serve your business. Before we get there, let’s start by laying out why a solid set of templates is indispensable—and where most organizations go wrong.
Why We Need (Better) Contract Templates
Organizations often juggle a wide range of agreements, from the simplest Non-Disclosure Agreement (NDA) to the most complexTerms & Conditions or Master Services Agreement (MSA). Companies, for instance, often deal with Software as a Service (SaaS) contracts (Salesforce, ServiceNow, HubSpot). Each contract type can be drastically different, but they all share one objective: to clearly outline obligations, manage expectations and mitigate risk.
Balancing Clarity and Complexity
One of the main reasons companies need better contract templates is the tension between clarity and complexity. A good contract should be thorough enough to protect the business while still being concise and straightforward. For example, a wind turbine manufacturer might need clauses that cover equipment specifications, maintenance, installation timelines, and environmental compliance. Adding too many layers of complex legal text, however, can slow negotiations or make the contract inaccessible for non-legal stakeholders.
By creating well-structured, user-friendly templates, you ensure that each new contract iteration doesn’t require a complete rewrite. Instead, your teams can modify or append specific clauses to tailor the template to each deal, project, or relationship. This level of uniformity can dramatically cut down on drafting time, reduce back-and-forth with legal counsel, and speed up the signature process.
Enhancing Workflows
Well-designed templates also improve workflows by establishing a clear starting point. If you are repeatedly negotiating Master Services Agreements or Terms & Conditions (T&Cs), for instance, you want your sales or procurement colleagues to know exactly which clauses are standard and which ones might need special approval. This clarity keeps deals moving quickly and prevents confusion.
In a tech environment, especially one dealing with SaaS or AI solutions, the speed of execution can be a competitive advantage. Having strong, approved templates means your product or service can get to market faster, since you won’t have to battle the same legal issues repeatedly.
Keeping Pace with Evolving Business Needs
Business models evolve rapidly. Just think about how quickly AI technology is reshaping industries or how sustainability concerns are driving new contract requirements for wind turbine manufacturers. If your contracts don’t keep up with these changes, you could end up with agreements that fail to address emerging risks or market demands. For example, an AI contract might need robust clauses related to data privacy, algorithmic bias, or intellectual property ownership.
Templates need regular updates to accommodate new legal requirements, shifts in company strategy, and lessons learned from recent deals. Far too often, companies let their templates gather dust, failing to reflect current regulations, technology changes, or internal processes. This is why dedicating resources to regularly refining and updating templates isn’t a luxury—it’s a necessity for any forward-thinking enterprise.
Common Issues with Contract Templates
Despite their obvious advantages, contract templates can become more of a hindrance than a help if they aren’t properly managed. Below are four issues that commonly arise.
1. Complexity
Overly long, technical, or legalistic language can deter people from using templates. A contract for a wind turbine supply project, for example, might run dozens of pages, filled with specialized engineering terms. If the language is too arcane, the sales or operations team might avoid the template altogether, reverting to manual drafting or older versions. This reduces consistency and can create legal blind spots.
2. Accessibility
Just having great templates on file doesn’t help anyone if they can’t be found. Many organizations store templates in multiple folders or on different file-sharing platforms without clear naming conventions. This leads to confusion, version control issues, and the risk of using outdated documents.
3. Limited Resources
Template management can fall by the wayside when legal teams are stretched thin. With pressing demands like regulatory compliance, litigation, or high-stakes contract negotiations, dedicating time to reviewing and updating templates can seem like a low priority. As a result, templates quickly become outdated or overlooked.
4. Excessive Legal Review
One main benefit of templates is the reduction of legal review times—yet this only works if the templates are well-structured and widely trusted. If internal stakeholders distrust a template’s accuracy, they’ll still funnel contracts to Legal for a deep dive. When every single deal, even small ones, becomes a bottleneck, it defeats the entire purpose of having a standardized approach.
Consequences of Contract Template Issues
Neglecting contract templates or managing them poorly can trigger a cascade of problems:
Delays in Contract Creation, Negotiation and Signing
If a template is unwieldy or unclear, it can’t speed up much of anything. Negotiations might stall as both parties parse through unnecessary terms or loop in legal counsel for clarifications. In fast-paced markets like AI or SaaS solutions, a few weeks’ delay can mean lost opportunities.
Increased Risk Exposure
Templates are supposed to protect the company from legal pitfalls, but if they’re outdated or inconsistent, they can introduce more risk. For instance, imagine you’re finalizing a wind turbine maintenance contract and your template lacks a recent clause covering environmental regulations. You could face unforeseen liabilities or compliance issues if something goes wrong.
Higher Workloads
Legal, procurement, and sales teams spend far more time dealing with avoidable contract snags when templates aren’t user-friendly. Instead of focusing on strategic deals or high-risk situations, experienced counsel and managers waste hours revising the same clauses because the existing template is missing critical updates.
Strained Business Relationships
Contracts serve as touchpoints of trust and efficiency. Clients or partners who encounter errors, inconsistencies, or long delays may question your professionalism. This can harm relationships, with ripple effects on future collaborations and your reputation in the market.
Results of Having State-of-the-Art Templates
When companies invest in robust, well-maintained contract templates, the benefits are felt across every stage of the deal cycle. Below are nine advantages you can expect when you get it right:
1. Shorter Contract Negotiation Times
With standard terms already approved, you avoid renegotiating common clauses for each new agreement. Whether you’re drawing up a SaaS user agreement, an AI licensing contract, or an extensive MSA for wind turbine installations, both sides can focus on the unique aspects of the deal instead of wading through boilerplate clauses.
2. Increased Efficiency and Simplified Contract Handling
Well-organized templates reduce repetitive drafting. This frees up your legal, sales, and procurement teams to concentrate on more strategic tasks—like market expansion, major partnerships, or regulatory shifts that impact your industry. In tech, efficiency gains can translate directly into faster product launches or new feature rollouts.
3. Reduced Workload
By cutting down on the number of contracts that need an in-depth legal review, you open up bandwidth for high-value activities. This not only alleviates bottlenecks, it also makes the best use of specialized legal expertise. Instead of reviewing basic NDAs or T&Cs, your legal team can focus on, say, negotiating a complex AI data-sharing agreement or advising on regulations for renewable energy installations.
4. Enhanced Consistency and Contract Quality
A consistent, predictable approach builds trust with stakeholders. For instance, if you’re partnering with multiple wind farms, each contract will look and feel similar, providing confidence to partners that you know how to handle regulatory requirements, risk allocations, and maintenance responsibilities.
5. Risk Mitigation
Well-crafted templates function as a built-in risk management tool. By integrating updated clauses on liability, data protection, intellectual property, and compliance, you create a safety net that reduces the likelihood of legal disputes. This is particularly crucial in cutting-edge fields like AI, where regulations are still evolving and clarity is paramount.
6. Decreased Legal Costs & Improved Cost Efficiency
When legal teams spend less time reviewing common contracts, your organization saves money. Those resources can then be reallocated to essential areas—like exploring new tech partnerships or investing in research and development for AI or wind turbine efficiency upgrades.
7. Stronger Business Relationships
A smooth, transparent contracting process fosters goodwill. Clients, suppliers, and partners appreciate clarity and efficiency, and they’re more likely to remain loyal or expand the relationship. In specialized industries, like renewable energy, a reputation for easy, fair contracts can be a powerful competitive edge.
8. Optimized Resources
When contract workflows are streamlined, companies can allocate financial and human capital more effectively. This may mean investing in better contract management software, training employees on best practices, or diverting saved resources into innovation initiatives—such as new AI features or advanced turbine technology.
9. Empowered Commercial Teams
Finally, modern contract templates give sales and procurement teams greater autonomy. They can handle routine deals themselves, thanks to pre-approved language. This sense of empowerment boosts morale and allows these teams to focus on building relationships rather than waiting on legal reviews.
Examples: Experienced Results of Contract Optimization
Drawing on two decades of experience in contract optimization, I’ve seen firsthand how transformative good templates can be.
Technology Company
In one instance, a tech company changed its entire suite of legal documents—ranging from SaaS agreements to T&Cs and NDAs—to align them with new data protection laws. By involving key stakeholders (Legal, Sales, and IT Security) from the start, they created a user-friendly, legally robust set of templates. The outcome was a dramatic reduction in contract negotiation times and fewer escalations to senior management.
Renewable Energy
In another example, a renewable energy firm specializing in wind turbine installation tackled their inconsistent and overly complex MSAs. Their previous templates had caused frequent renegotiations and confusion over maintenance responsibilities. After revamping the templates to remove outdated clauses and clarify roles, the average contract closing time dropped by nearly 40%. Clients noted the improved clarity, leading to stronger partnerships and a significant boost in the firm’s industry reputation.
Bringing It All Together
These examples underscore the value of a collaborative approach to contract optimization. It’s not just a legal project; it’s an organizational endeavor that benefits every department involved in contract-related workflows. Regular feedback loops, where Sales or Procurement teams highlight real-world issues they face during negotiations, can pinpoint areas that need refinement. Legal teams, in turn, can incorporate new regulatory updates or risk mitigation strategies. This cycle of continuous improvement keeps your templates relevant, user-friendly, and aligned with evolving business goals.
How to Avoid These Issues and Reach Better Results?
But how can you avoid these issues and reach the advantages & results we discussed above? Stay tuned for our upcoming posts and articles, where we will dive deeper into practical tactics and step-by-step guidance on developing contract templates that truly work for your business.
Best Practices to Roll Out New Contract Templates
If you’re ready to transform your contracts from a necessary evil into a strategic asset, we’re here to help. Whether your primary focus is tech, AI, or renewable energy, every organization can benefit from more streamlined, flexible, and secure contracts. For further guidance on improving contract templates, managing negotiations, and optimizing related processes, reach out via lowa@amstlegal.com or book an appointment with Robby Reggers here.
Follow Robby Reggers and AMST Legal on LinkedIn to read the updates and long form versions of the following posts & articles on these essential topics:
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.
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.