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PLAYBOOK TEMPLATES

Warranty Service Agreement

A Warranty Service Agreement details how defects, repairs, and replacements are handled during a product’s warranty period. This playbook emphasizes negotiating fair remedies, service levels, and liability limitations that align with operational realities.

Pricing & Payment Terms

Why This Matters: Unclear payment terms can result in delays, disputes, and cash-flow strain, increasing financial risk and operational disruption.

Negotiation strategy

If you're the Customer:

Ensure the payment schedule aligns with your cash flow needs. Negotiate for favorable interest rates on late payments and clear invoicing procedures.

If you're the Manufacturer:

Clarify payment terms to avoid disputes. Include provisions for interest on late payments and conditions for adjustments to protect your financial interests.

Essential elements

1

Payment Schedule

Defines timing of payments.
2

Invoicing Procedures

Details on invoice issuance.
3

Late Payment Interest

Interest rate on overdue payments.

Action framework

ACCEPT

Propose edits if payment terms are vague or misaligned with financial planning.

EDIT

Reject if terms impose unreasonable financial risk or lack clarity.

ADD

Add terms if absent to ensure financial clarity and protection.

PRO TIP

Always align payment terms with your financial policies to avoid cash flow issues.

Example clauses

FAVORABLE

Preferred Pricing & Payment Clause

"The total contract price is [amount]. Payments shall be made according to the following schedule: [insert milestones and amounts]. Invoices will be issued [frequency], and payment is due within [number] days of receipt. Interest at a rate of [percentage]% per annum will be charged on late payments. Adjustments to payments may be made under the following conditions: [specify conditions]."
NEUTRAL

Fallback Pricing & Payment Clause

"The contract price is [amount]. Payment is due upon completion of deliverables. Invoices will be issued upon completion, with payment due within [number] days. Late payments will incur interest at [percentage]% per annum."
UNFAVORABLE

Unclear Payment Terms

"Payment terms will be discussed and agreed upon at a later date."

Fallbacks

High-Risk Projects

For high-risk projects, ensure payment terms include milestones and retainers to mitigate financial exposure.

International Transactions

Include terms for currency exchange and compliance with international payment regulations to avoid legal issues.

Long-Term Contracts

In long-term contracts, consider including periodic reviews of payment terms to adjust for economic changes.
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