What is a contract playbook? Glad you asked.
Like in sports, playbooks contain the team’s contract strategies, including standard terms, their explanation, the rationale, and their importance.
Guidance is provided for defending a clause from changes, and the risks such changes present.
Playbooks save companies time and money by ensuring the legal and business interests are aligned. Business determines the contract’s accomplishments, and legal, the language to reduce risks.
Playbooks provide the language needed during a negotiation with alternate “fall back” language ready to deploy.
Importantly, playbooks make it clear when to walk away. This reduces pressure to give on crucial issues to get the deal done.
While playbooks are built from one’s own terms, they should also address counterparty offers, especially unacceptable terms.
They should arm users with the play to use, whether to decline, offer another clause, and when to escalate.
Ensure your playbook is integrated into your contract management system, and regularly updated in response to changes in the law, and new business scenarios.