Good contract negotiation requires a clear understanding of a company’s key objectives in making a contract. Of course, this is easier said than done. After all, contracts can involve a transaction, as is the case in a sale, or a relationship, like employment. But whatever type of contract you’re negotiating, it’s crucial that you know what you want, what the other party wants, and know both you and the other party’s BATNAs (Best Alternative To a Negotiated Agreement).

We’ve all signed contracts, but how many of you have signed a contract and read every last word, and then understood every last word? Probably not most of you. Even though a lot of clauses are boilerplate clauses (a term widely used to mean standard or commonplace clauses) , it’s still important to know what they cover and to have some grasp of what those standard terms mean. If you’re in the situation where you sign a contract and have a disagreement with the other party to the contract, you’ll want to make sure you understand how boilerplate clauses may impact your case. There are numerous boilerplate clauses one might come across including dispute resolution, indemnification, assignment, force majeure, no waiver, merger, limitation of damages, warranty, confidentiality, severability, termination, and much more.