A Strategic Alliance Agreement documents cooperative arrangements between entities for mutual benefit. This playbook highlights IP ownership, performance metrics, and termination strategies.
Why This Matters: Clear payment terms prevent disputes over timing and amount, mitigate financing risk, and preserve cash flow. Ambiguities can lead to payment delays and enforcement litigation.
Negotiation strategy
If you're the Buyer:
Negotiate for a clear payment schedule with specific due dates and methods to ensure predictable cash flow. Consider including holdbacks to protect against potential breaches.
If you're the Seller:
Ensure the total price is inclusive of all applicable taxes and fees. Advocate for earnout provisions to maximize potential revenue based on performance targets.
Essential elements
1
Payment Schedule
Defines installment timing.
2
Total Price
Specifies purchase amount.
3
Currency Terms
Sets payment currency.
Action framework
ACCEPT
Propose edits if payment terms are unclear or inconsistent with market standards.
EDIT
Reject clauses that impose unreasonable financial risks or lack clarity.
ADD
Add clauses for interest on late payments and unforeseen costs to protect financial interests.
PRO TIP
Always verify that payment terms align with your financial strategy and risk tolerance.
Example clauses
FAVORABLE
Preferred Total Price Clause
"The total purchase price for the transaction shall be [insert amount] (the 'Purchase Price'). The Purchase Price is inclusive of all applicable taxes, fees, and charges, unless otherwise specified in this Agreement."
NEUTRAL
Standard Payment Schedule
"The Purchase Price shall be payable in the following installments: [insert payment schedule details]. Each installment shall be due on the [insert due date] and shall be paid via [insert payment method]."
UNFAVORABLE
Unclear Currency Terms
"All payments under this Agreement shall be made in [insert currency]."
Fallbacks
High-Risk Projects
In high-risk projects, consider more stringent holdback conditions to mitigate potential losses and ensure compliance with performance targets.
International Transactions
For international transactions, specify a reliable financial institution for currency exchange rates to manage fluctuation risks effectively.
Startup Ventures
In startup ventures, flexible earnout provisions can incentivize growth and align interests between parties.
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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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