Negotiating a contract that protects both parties.
Most contracts arrive drafted by one side, and drafted in that side’s favour. Negotiation is how you rebalance the terms so the agreement is mutual, fair enough that both parties are protected and both will honour it. The art is knowing which clauses actually matter, and how far to push each one. These are the clauses where negotiation makes the real difference.
Limitation of liability
The single most important clause to negotiate, and the one most often overlooked. It caps how much a party can be made to pay if things go wrong. An uncapped liability clause exposes you to claims far beyond the value of the deal; an unreasonably low cap on the other side leaves you without a real remedy. We negotiate a cap that is proportionate to the contract, typically linked to the fees paid, with carve-outs for the things that should never be capped, such as a breach of confidentiality or an IP infringement. Getting this clause right is the difference between a manageable risk and an existential one.
Indemnity and indemnification
An indemnity is a promise by one party to cover the other’s specified losses, often losses caused to a third party. The danger is a broad, one-sided indemnity that makes you responsible for the other side’s mistakes. We negotiate indemnities that are mutual where they should be, limited to what each party actually controls, capped where appropriate, and tied to a sensible process for handling claims. Indemnification and the limitation of liability work together, and negotiating them in isolation is a common and costly error.
Termination and exit
How, and on what notice, either party can end the agreement, and what happens on exit. We negotiate balanced termination rights, for convenience and for cause, fair notice periods, payment for work done, and clean handover of data and deliverables, so that neither side is trapped and neither can walk away leaving the other exposed.
Payment terms
The amounts, the schedule, the due dates, and the consequences of late payment. We negotiate terms that protect your cash flow without being punitive, including the right to suspend performance on non-payment, so that a payment dispute does not become an unpaid debt requiring a recovery notice.
Intellectual property ownership
Who owns what is created under the contract. We negotiate IP terms that give each side what it needs, the client owning the deliverables it paid for, the provider retaining its pre-existing tools and IP, so the ownership position is clear and neither side is stripped of what it should keep.
Confidentiality and restrictive covenants
The confidentiality obligations, and any non-solicitation or non-compete terms. We negotiate these to be reasonable and, importantly, enforceable under Indian law, a post-employment non-compete is generally void under Section 27 of the Indian Contract Act, so an overreaching restraint is both unfair and useless.
Dispute resolution and governing law
How future disputes will be resolved, and where. We negotiate for a sensible escalation, negotiation and mediation before arbitration or court, and for a governing law and jurisdiction that do not force you to fight on unfavourable ground.
The goal of negotiation is not to win every clause. It is to make the contract mutual, so both sides are protected and both will honour it. A balanced contract is a contract that lasts.