When you work with third-party vendors, you need to have a system for managing third-party contracts, so everyone is aware of the agreed-upon terms. These terms include responsibilities, obligations, liabilities, and payment conditions.
Although third-party contract review is essential, it's also time-consuming and expensive. This is partly because you're not reviewing a pre-existing signed contract. Instead, you need to review and analyze a new contract, which means you'll likely need to make redlines and go through a few rounds of negotiation before all parties agree to sign the contract.
In addition, managing high-volume, low-risk third-party contracts is a cumbersome process that can easily take away time from your legal team that they could otherwise spend on more pertinent tasks.
Third-party contract reviews to support procurement and sales can be time-consuming and expensive. Instead of surgically redlining third-party contracts, you can use DocJuris Amendments to export an amendment that includes the prevailing terms and clauses you require in the form of an amendment.
How Third-Party Contract Negotiation Works in DocJuris
DocJuris makes contract negotiation easy, whether you're working with a client or a third party. Here are some of the tools included in DocJuris that can eliminate headaches as you negotiate and redline a third-party contract.
You already know what types of sections your organization would strike through or delete in a contract, even before you set eyes on the third-party contract. So, use DocJuris to create a narrowly focused playbook tailored to search for specific concepts.
This third-party contract playbook should outline all the sections you know you want to eliminate, such as issues you'd prefer to stay silent on. Some examples of these types of issues include automatic renewal or a most favored nations (MFN) clause.
Your prevailing terms outline the issues and clauses you prefer to govern and control. With DocJuris, you can draft your prevailing terms in a Word document, then attach them as an exhibit in the final issue of your playbook.
Some examples of prevailing terms include indemnification, insurance provisions, and price increase limitations. You can format this document in a way that makes the most sense for you and your legal team.
Customize your amendment
With DocJuris, you get to decide on the template you use to customize your amendment. Then, you can add that amendment template to your playbook and use it to automatically add amendments to contracts wherever they're needed.
Tip: We always recommend adding language stating that the terms of the amendment control and govern over the terms of the third-party contract. This rule-of-thumb applies whether you are using the playbook as a standalone issue, the prevailing terms exhibit, or a customized amendment form. Adding clear language about the amendment terms superseding the terms of the third-party contract can eliminate confusion and headaches as you work with third-party vendors.
How to Generate Fast-Tracked Third Party Contract Amendments with DocJuris
Here are the steps to take in DocJuris to generate fast-tracked contract amendments when you're working with a third-party vendor.
- Upload a third-party contract into DocJuris and select your newly created fast-track playbook for a third party.
- Use the playbook as a guide to intentionally omit or delete applicable sections in the contract that you prefer to be silent on.
- Double-check that you've included a reference to the prevailing terms exhibited in the body of the agreement (e.g., "this agreement is subject to exhibit A, attached hereto and made a part hereof."). Then, use the playbook to insert the prevailing terms exhibit.
- Export the amendment to the third-party contract, where it will be automatically attached.
After going through this process, the counterparty will receive a neatly formatted set of changes that describe the deletions your firm has made, along with an exhibit on prevailing terms of the contract.
Negotiating and redlining third-party contracts don't have to be a headache when you have DocJuris software on your side! Use DocJuris to create a playbook that works for all third-party vendors and allows you to quickly make deletions and insert prevailing terms into a third-party contract.
DocJuris saves you and the counterparty time. It also makes the amended contract easy to read, which can speed up the process of negotiating on both sides.
Have questions about amendments and playbooks? Eager to try DocJuris for yourself? Want to learn more about what DocJuris is and how it can help your organization? No matter what your questions are, we're ready to help! Schedule a demo to see all the features DocJuris has to help your organization when you need to negotiate or redline a contract.