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PLAYBOOK TEMPLATES
Joint Defense & Common Interest Agreement
A Joint Defense & Common Interest Agreement protects privileged communications among aligned parties in litigation. This playbook provides guidance on scope, waiver risks, and confidentiality obligations.
Table of Contents
Termination & Exit Rights
Negotiation strategy
Ensure that termination clauses are specific and include provisions for material breach, insolvency, and regulatory orders. Negotiate reasonable notice and cure periods to protect the company's interests.
Advocate for flexible termination terms that allow for adequate notice and opportunity to cure breaches. Ensure that post-termination obligations are manageable and clearly defined.
Essential elements
1
Termination Events
Conditions for contract termination.
2
Notice Periods
Timeframe for termination notice.
3
Cure Rights
Opportunity to remedy breaches.
Action framework
ACCEPT
Propose edits when notice periods or cure rights are unreasonably short or long.
EDIT
Reject clauses that lack clear termination events or impose excessive post-termination obligations.
ADD
Add language to address regulatory requirements or specific business needs.
PRO TIP
Always ensure termination clauses are aligned with both parties' operational capabilities and legal obligations.
Real-world examples
FAVORABLE
Balanced Termination Clause
"Either party may terminate this Agreement upon the occurrence of any of the following events: (a) a material breach of this Agreement by the other party that is not cured within thirty (30) days after receipt of written notice of such breach; (b) the other party becomes insolvent or is unable to pay its debts as they become due; (c) the other party files for bankruptcy or is subject to any involuntary bankruptcy proceeding that is not dismissed within sixty (60) days; or (d) any governmental or regulatory authority issues an order or ruling that prevents the continuation of the Agreement."
NEUTRAL
Standard Notice Clause
"A party seeking to terminate this Agreement must provide the other party with written notice of its intent to terminate at least sixty (60) days prior to the effective date of termination, unless otherwise specified in this Agreement."
UNFAVORABLE
Ambiguous Termination Rights
"Termination may occur at any time without specific cause or notice, subject to mutual agreement."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination clauses include specific risk mitigation measures and allow for immediate termination in case of significant safety or compliance issues.
Long-Term Contracts
For long-term contracts, include periodic review clauses to reassess termination terms and ensure they remain relevant and fair over time.
Cross-Border Agreements
In cross-border agreements, consider jurisdictional differences in termination rights and ensure compliance with local laws to avoid legal complications.
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WEEK 1
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WEEK 2
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WEEK 3
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WEEK 4
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