A JDA sets forth terms for collaborative product or technology development, addressing ownership, confidentiality, and IP outcomes. This playbook highlights best practices for defining contributions, milestones, and dispute resolution.
Why This Matters: Well-defined payment terms protect cash flow, reduce the potential for billing disputes, and provide enforcement tools for revenue verification.
Negotiation strategy
If you're the Company A:
Ensure payment terms are linked to clear deliverables and milestones. Negotiate for favorable audit rights to verify compliance.
If you're the Company B:
Advocate for timely compensation and clear reporting requirements. Ensure currency conversion costs are addressed.
Essential elements
1
Payment Schedule
Defines timing of payments.
2
Audit Rights
Allows verification of compliance.
3
Currency of Payment
Specifies payment currency.
Action framework
ACCEPT
Propose edits if payment terms lack clarity or enforceability.
EDIT
Reject if terms are ambiguous or unfairly allocate risks.
ADD
Add clauses for currency conversion costs or missing audit rights.
PRO TIP
Always ensure payment terms are linked to specific deliverables to avoid disputes.
Example clauses
FAVORABLE
Clear Milestone Payments
"Payments shall be made upon completion of each milestone as detailed in Schedule A."
NEUTRAL
Standard Reporting
"Reports shall be submitted quarterly, detailing project progress."
UNFAVORABLE
Unspecified Currency Costs
"Payments may be subject to conversion fees without clear allocation."
Fallbacks
International Contracts
In international contracts, specify which party bears currency conversion costs to prevent disputes.
High-Value Projects
For high-value projects, ensure audit rights are robust to verify large transactions.
Variable Royalty Rates
In agreements with variable royalty rates, ensure clear calculation methods are included.
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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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