A Sponsorship Agreement outlines the terms under which one party provides funding or support for promotional exposure. This playbook details exclusivity, deliverables, and termination for reputational risk.
Why This Matters: A clear dispute resolution framework reduces litigation risk, time, and costs while preserving business relationships.
Negotiation strategy
If you're the Client:
Ensure the dispute resolution clause includes favorable jurisdictions and ADR mechanisms to minimize costs and time. Propose mediation as a first step to preserve relationships.
If you're the Agency:
Negotiate for a neutral jurisdiction and ensure arbitration rules are fair. Consider proposing a cap on arbitration costs to protect financial interests.
Essential elements
1
Governing Law
Defines applicable legal framework.
2
Jurisdiction
Specifies court location for disputes.
3
Alternative Dispute Resolution
Outlines mediation and arbitration processes.
Action framework
ACCEPT
Propose edits if the jurisdiction is unfavorable or ADR mechanisms are missing.
EDIT
Reject clauses that specify only litigation without ADR options.
ADD
Add mediation and arbitration clauses if absent.
PRO TIP
Always confirm the suitability of mediation institutions and arbitration rules to align with business goals.
Example clauses
FAVORABLE
Preferred Clause
"The Agreement shall be governed by and construed in accordance with the laws of [State/Country], without regard to its conflict of law principles."
NEUTRAL
Fallback Clause
"If the preferred institutions or locations are not acceptable, propose alternatives that still align with business goals."
UNFAVORABLE
Unfavorable Clause
"Avoid clauses that do not include ADR mechanisms or specify unfavorable jurisdictions."
Fallbacks
International Contracts
In international contracts, ensure the jurisdiction and governing law are mutually acceptable to avoid enforcement issues.
High-Value Transactions
For high-value transactions, prioritize arbitration to ensure confidentiality and a binding resolution.
Long-Term Partnerships
In long-term partnerships, mediation can be a first step to maintain relationships and resolve disputes amicably.
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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
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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.