A Sale and Contribution Agreement formalizes the transfer of assets or capital into a joint entity. This playbook analyzes valuation methods, assumption of liabilities, and closing deliverables.
Why This Matters: Clear payment terms reduce disputes, safeguard working capital, and align financial expectations between the parties.
Negotiation strategy
If you're the Company:
Negotiate for a payment schedule that aligns with your cash flow needs. Ensure late fees are reasonable and that the reconciliation process is clear and efficient.
If you're the Seller:
Propose a payment structure that supports your cash flow requirements. Include provisions for late fees to incentivize timely payments and a clear reconciliation process for disputes.
Essential elements
1
Payment Schedule
Defines timing of payments.
2
Pricing Structure
Outlines cost components and adjustments.
3
Late Fees
Penalties for overdue payments.
Action framework
ACCEPT
Propose edits if payment terms are unclear or misaligned with project milestones.
EDIT
Reject if terms impose unreasonable financial risk or lack clarity.
ADD
Add terms if missing to establish clear financial expectations.
PRO TIP
Always align payment terms with project deliverables to ensure cash flow stability.
Example clauses
FAVORABLE
Preferred Payment Terms
"Payments shall be made in accordance with the schedule outlined in Exhibit A. Late payments will incur a fee of 1.5% per month. Any discrepancies will be addressed through the reconciliation process detailed in Section 5."
NEUTRAL
Fallback Payment Terms
"Payments are due within 30 days of invoice receipt. Late payments may incur a fee. Discrepancies will be resolved through mutual agreement."
UNFAVORABLE
Unclear Payment Terms
"Payments shall be made as agreed. Late fees may apply. Discrepancies will be discussed."
Fallbacks
High-Risk Projects
In high-risk projects, ensure payment terms include milestones tied to deliverables to mitigate financial exposure.
International Transactions
For international deals, specify currency conversion processes and manage exchange rate risks to avoid financial discrepancies.
Long-Term Contracts
In long-term contracts, include provisions for periodic review and adjustment of payment terms to reflect market changes.
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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
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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