Contract playbooks are based on a type of contract. The provisions of a sales contract, a sales contract, a confidentiality agreement, a license or a lease agreement are different and involve different risks. Each of these types of contracts should have its own Playbook. 6. For whom is the Playbook? At first glance, you might think it`s a stupid question. The contract book is obvious to lawyers (in-house and outside). While this is probably true, you may be better served when you consider that your audience is business, especially the sales team. If your sales team understands the contract and the company`s positions on different hardware clauses, you can save yourself a lot of headaches, because you can start turning them into contract defenders against the defenders of what the customer wants. If the latter occurs, the result is bad behaviour on the part of the sales team and forces the internal legal team to negotiate twice, with the client and internally with the distribution. A well-written contract book can bring the sale to the right side. But to do this, you need to have the playbook relatively short and written in a way that non-lawyers can understand.
If you make a 100-page hyper-detailed playbook available to the sales team, it will sit on the shelf and collect dust. That is, you do not want to silence him to the point of not helping him for your lawyers. One solution, although extra work, is to create two Playbooks – one for lawyers and one for sale (i.e. a retouched version of the Lawyer`s Playbooks). 5. Automation. An added benefit of a contract playbook is that automating your contract process is much easier to implement. Most contract assembly tools require you to divide your contracts into sections. A contract book is already doing this job.
Similarly, the tool requires you to put in place acceptable alternatives to your standard clauses in general in the form of a clause library. When the contract is then merged, the user (lawyer or businessman) can choose from the approved clauses. A robust contract playbook also makes this task easy. Similarly, artificial intelligence is increasingly being used in internal legal services. A hot spot is the use of AI to verify draft contracts and tell you which sections of the contract are acceptable and where negotiations are needed. A contract playbook is an important part of setting up such a tool. The tool`s AI uses your Playbook to learn your default clauses and positions, then “check” the contracts, z.B. redlines to your standard contracts or standard customer paper, and give you a red line of suggested changes you should make. While a contract playbook will save you valuable hours during the contract negotiation process, the use of artificial intelligence for the first passage of contract review is, in my opinion, a Game Changer for legal services.
Within a distributed team that negotiates similar contracts, it is essential for risk management to deal with identical issues in the same way. Standardization of the language used to deviate from standard positions ensures that the entire team benefits from the caution of the most experienced lawyers, so that the associated risk is understood and managed. A well-designed Playbook can advance standardization or differentiation accordingly. The benefits of a contract playbook – why it`s important – are manifold. There are a few. Contract playbooks warn against the language of the counterpart. Playbooks are generally based on their own terms and conditions, but they should also deal with provisions that are likely offered by a counterparty, especially provisions that are not acceptable. The negotiator who uses the playbook should make it clear whether he completely rejects the provision or proposes a prepared, acceptable version of the Playbook.