Blog

October 9, 2024

The Contract Network

Want to Negotiate Your Contracts Faster? Try Empathy

Last quarter, our clients eliminated between 50-80% of their negotiations relative to their historical benchmarks. Agreements were signed with less friction and in a fraction of the time. We’re proud of delivering such incredible and demonstrable outcomes.

I’m often asked how our platform accelerates contract negotiations … and we do a lot. We deliver critical accelerators like market insights, AI-analytics, internal and counterparty collaboration, and streamlined workflows. But it’s not our platform alone that delivers these outcomes.

One of the most under-appreciated techniques for accelerating negotiations boils down, simply, to sending initial draft agreements with a better acknowledgment of the counterparty’s needs.

Before any objections, this doesn’t mean we’re advocating for our clients to give up their critical interests. It means we’ve encouraged contract authors to proactively recognize and address the other party’s legitimate concerns in their first draft agreement, especially for points that won’t affect the authors’ needs. We have concretely proven that when you balance protecting your own interests with anticipating your counterparties’ needs, you can significantly reduce unnecessary negotiations, allowing both sides to focus on what truly matters.

The Role of Empathy in Contracts

When drafting contracts for speed, it’s important to consider the perspective of the other party. This doesn’t mean sacrificing your priorities, but rather acknowledging their valid concerns instead of sending over a one-sided agreement that’s sure to lead to heavy revisions. For instance, if the industry standard uses “confirm” rather than “certify” in a clause—and it doesn’t impact your position—make the change upfront. If your counterparty requires a “no publicity” clause, lean into it instead of making them ask.
The goal is to make it easier for your counterparty to review the contract efficiently, avoiding tedious back-and-forth over small, non-substantive points. This way, both parties can quickly focus on key issues, making the negotiation smoother and faster.

Key Tactics for Drafting “Faster Contracts”

To draft in a way that speeds up negotiations, keep these strategies in mind:

  • Incorporate Market Terms:
    Avoid non-standard clauses—either net new subjects or unusual drafting conventions—unless you have a unique need. Clauses that are perceived as “market,” in substance and form, are rarely negotiated. We know that this works. Last quarter, we observed a reduction of 80% or more in negotiations for many subjects simply by guiding our clients to more conventional drafting through our Market Match™. Unusual subjects and unusual drafting are negotiation magnets. 
  • Simplify the Format and Language:
    Cluttered clauses and contracts filled with unnecessary jargon can slow things down. Clear, straightforward drafting helps all parties—whether legal experts or not—understand the contract easily, reducing confusion and speeding up the review process. Here’s a good example of drafting faster contracts through formatting alone. Note that these changes are not substantive (although plain language drafting could help even more). They simply break up the clause, making it easier for an unfamiliar reader to navigate quickly. 


    “Slow Contract” Drafting


    If any provision or portion of this Agreement is determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by applicable law. This Agreement constitutes the entire agreement between the parties relating to the matters discussed herein, and may only be amended as expressly indicated herein. All modifications of, waivers of, and amendments to this Agreement or any part hereof must be in writing, signed on behalf of the parties hereto. This Agreement shall be binding upon you and your successors and assigns, and shall inure to the benefit of our successors and assigns. It is further understood and agreed that no failure or delay by us in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any right, power or privilege hereunder. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which, taken together, shall be deemed to be one and the same instrument.

    “Fast Contract” Drafting

    • Entire Agreement: This Agreement constitutes the entire agreement between the parties relating to the matters discussed herein, and may only be amended as expressly indicated herein.
    • Modifications and Waivers: All modifications, waivers, and amendments to this Agreement or any part hereof must be in writing, signed on behalf of the parties hereto.
    • Binding Effect: This Agreement shall be binding upon you and your successors and assigns, and shall inure to the benefit of our successors and assigns.
    • Rights and Privileges: It is further understood and agreed that no failure or delay by us in exercising any right, power, or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise of any right, power, or privilege hereunder.
    • Execution in Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which, taken together, shall be deemed to be one and the same instrument.

  • Proactively Address Counterparty’s Known Pain Points:
    If you’re aware of typical concerns the other side might raise, and they are not objectionable, resolve them upfront. For instance, if you know a specific clause is often a source of friction but there is an obvious fallback that both parties will accept, adjust it to something more reasonable to avoid time-consuming debates.
  • Explain Your Unique Needs:
    If there’s a particular clause that’s not standard but necessary for your business, don’t leave it unexplained. Add a note or rationale for why it’s included, helping the counterparty understand the reason behind it. This clarity reduces unnecessary redlines and ensures they focus on key points.
  • Highlight Your Good-Faith Efforts:
    Importantly, it takes two to tango, and no author wants to give an inch if they think their counterparty is going to take a mile. If you’ve made changes to accommodate the other party’s needs, communicate that upfront. Let them know you’ve engaged in thoughtful drafting to streamline the process. Ask them to focus only on areas of true importance, which will speed up the overall review.

Conclusion

Achieving faster contract negotiations doesn’t just depend on technology or hardline strategies. It depends on drafting agreements that are thoughtful, clear, and considerate of both your and your counterparty’s concerns. We’ve seen contracts where careful, proactive adjustments reduce negotiations by 50-80%. The end result isn’t just speed—it’s also better relationships and more trust between both parties, which can be invaluable in the long run.

Next time you draft an agreement, take a moment to understand the other side—and see how much faster things move.