5
PLAYBOOK TEMPLATES
Letter of Intent (LOI)
A Letter of Intent expresses preliminary terms for a potential transaction, outlining intent before formal contracts. This playbook clarifies binding vs. non-binding provisions and confidentiality obligations.
Termination Rights
Negotiation strategy
Ensure termination rights are clearly defined to avoid being locked into an unfavorable agreement. Negotiate reasonable notice periods and post-termination obligations that align with business objectives.
Seek flexibility in termination rights to allow for an orderly exit if necessary. Ensure that notice periods and post-termination obligations are manageable and do not impose undue burdens.
Essential elements
1
Termination Triggers
Conditions for ending the agreement.
2
Notice Periods
Required time before termination.
3
Post-Termination Obligations
Duties after agreement ends.
Action framework
ACCEPT
Propose edits if triggers or notice periods are unclear or unreasonable.
EDIT
Reject if termination rights are overly restrictive or one-sided.
ADD
Add language if termination rights are missing or incomplete.
PRO TIP
Always ensure termination rights align with your strategic business goals and provide a clear exit strategy.
Real-world examples
FAVORABLE
Preferred Termination Triggers
"The Agreement may be terminated by either party upon the occurrence of any of the following events: (i) a material breach of any term or condition of this Agreement by the other party, which breach is not cured within thirty (30) days after receipt of written notice thereof; (ii) the insolvency or bankruptcy of the other party; (iii) mutual agreement of the parties; or (iv) any other event that the parties may agree upon in writing."
NEUTRAL
Notice Periods
"Termination of this Agreement shall require the terminating party to provide the other party with written notice of termination at least sixty (60) days prior to the effective date of termination, unless otherwise specified in this Agreement."
UNFAVORABLE
Unclear Termination Rights
"The Agreement may be terminated at any time without notice or reason, leaving the other party unprotected."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination rights include specific triggers related to project milestones and risk assessments to protect both parties.
Long-Term Contracts
For long-term contracts, include periodic review clauses to reassess termination rights and ensure they remain relevant and fair.
International Agreements
In international agreements, consider local laws and regulations that may impact the enforceability of termination rights.
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WEEK 3
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WEEK 4
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