A Sales Agreement establishes the legal framework for the sale and supply of goods between parties, setting terms for pricing, delivery, and risk transfer. This playbook examines key negotiation points including warranties, payment terms, and remedies for breach.
Why This Matters: Lengthy or unclear dispute processes can lead to expensive litigation and strained commercial relationships.
Negotiation strategy
If you're the Company:
Ensure the dispute resolution clause aligns with the company's strategic interests and minimizes potential legal costs. Opt for jurisdictions with favorable laws and consider mediation as a first step to avoid litigation.
If you're the Sales Agent:
Negotiate for a neutral venue and governing law that does not disproportionately favor the company. Advocate for clear mediation and arbitration processes to ensure fair treatment.
Essential elements
1
Governing Law
Defines applicable legal jurisdiction.
2
Venue
Specifies location for legal proceedings.
3
Mediation
Outlines initial dispute resolution step.
Action framework
ACCEPT
Propose edits if the governing law or venue is unfavorable or if mediation terms are unclear.
EDIT
Reject if the clause imposes unreasonable costs or lacks confidentiality provisions.
ADD
Add if the agreement lacks a clear dispute resolution framework.
PRO TIP
Always ensure the dispute resolution clause includes a confidentiality provision to protect sensitive information.
Example clauses
FAVORABLE
Preferred Governing Law Clause
"This Agreement shall be governed by and construed in accordance with the laws of [State/Country], without regard to its conflict of law principles."
NEUTRAL
Standard Venue Clause
"Any legal action or proceeding arising under this Agreement shall be brought in the courts located in [City, State/Country]."
UNFAVORABLE
Unclear Mediation Process
"The parties may attempt to resolve disputes through mediation, details to be determined."
Fallbacks
International Contracts
For international agreements, ensure the dispute resolution clause specifies a neutral jurisdiction and considers international arbitration rules.
High-Value Transactions
In high-value deals, prioritize arbitration to ensure a binding resolution and avoid lengthy court battles.
Long-Term Partnerships
For ongoing partnerships, mediation can preserve relationships by facilitating amicable resolutions.
FEATURED SOLUTIONS
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Unlike complex CLMs with long implementations and steep learning curves, DocJuris is built for speed and simplicity. We integrate with your workflow—whether connecting to a CLM or uploading agreements manually—so you're up and running in days, not months.
WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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DocJuris is not a law firm or a substitute for an attorney or law firm. We cannot provide any kind of advice, explanation, opinion, or recommendation about possible legal rights, remedies, defenses, options,selection of forms or strategies.