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PLAYBOOK TEMPLATES

Guarantee & Security Agreement

A Guarantee & Security Agreement provides collateral and personal guarantees securing performance or payment obligations. This playbook details drafting considerations for enforcement rights, perfection, and priority of security interests.

Representations and Warranties

Why This Matters: Overly broad or inaccurate representations can lead to unexpected liability and litigation. Precision in reps allocates risk fairly and reduces post-closing disputes.

Negotiation strategy

If you're the Lender:

Ensure representations are specific and verifiable. Limit the scope to factual statements to minimize potential liability.

If you're the Borrower:

Negotiate to include knowledge qualifiers and materiality thresholds to limit exposure. Ensure representations align with actual business practices.

Essential elements

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Status Representation

Party's legal standing and authority.
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Asset Representation

Details about party's assets.
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Operational Compliance

Adherence to laws and regulations.

Action framework

ACCEPT

Propose edits when representations are too broad or unverifiable.

EDIT

Reject clauses that impose unreasonable liability or are factually incorrect.

ADD

Add clauses to address specific risks or industry regulations.

PRO TIP

Tailor representations to the specific transaction to ensure they are relevant and enforceable.

Real-world examples

FAVORABLE

Preferred Clause

"The Party hereby represents and warrants that it is duly organized, validly existing, and in good standing under the laws of its jurisdiction; it has the requisite power and authority to enter into this Agreement; and its execution and performance of this Agreement will not violate any applicable law or regulation."
NEUTRAL

Fallback Clause

"The Party represents and warrants that, to the best of its knowledge, it is in compliance with all applicable laws and regulations relevant to its operations."
UNFAVORABLE

Overly Broad Representation

"The Party represents and warrants that it is in compliance with all laws and regulations globally, without exception."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, representations should be more detailed and include specific risk mitigation measures.

Cross-Border Transactions

Consider additional representations related to compliance with international laws and regulations.

Regulated Industries

Include specific representations about compliance with industry-specific regulations, such as financial services or healthcare.

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WEEK 1
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WEEK 2
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WEEK 3
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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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