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ScholarsThe most Important 7R of Contract Drafting Technique

Are you learning about contract drafting and contract drafting techniques? This time, let’s discuss contract drafting more deeply. There are 7Rs of most important techniques in contract drafting for you to know.


The main key of contract drafting

As mentioned earlier in the drafting contract there are seven most important techniques,  including the following:


  1. Recognizing

In contract drafting, entrepreneurs must be able to understand the identity, roles and interests of the parties. Basically, the entrepreneur will not think of entering into a contract if there is no interest whatsoever. Entrepreneurs will not make contracts if there is no interest or needs for it.

In the world of contracts, you have to know the right means to achieve your goals and involve other people. The aspects that need to be known are the identity of who is the authority. Make sure you are in charge of the matter. Not only you, make sure you also know the other party in charge (whether the representative is an authorized person or not).

The role relates to the rights and obligations of the authorities. In a simple contract, you can assign more than one role with the conjugation “and”, while in more complex contracts it is advisable to separate them to make the agreement clearer.

Identify your interests and needs, too. If necessary, list the interests of the contracting background. This is intended to find out which supplier is suitable and can fulfill your interests. Also list the candidates and contact them one by one to understand how they work. After understanding, hold separate meetings with the suppliers for the final determination of the sole supplier.


  1. Researching

The next basis for contract drafting is researching. You must be able to conduct a feasibility study and be familiar with the risk management that will be faced.


It is simple enough to do a feasibility study and risk management. When doing the feasibility study you need to write down some of the candidates and know about the characteristics and performance of the candidates. Meanwhile, to find out risk management, you can do it by negotiating with regard to sanctions if the supplier is late in sending goods or other mistakes occur. Then the supplier will not dare to not obey the agreed contract and must be responsible for the agreement.


  1. Renegotiating

When doing contract drafting, you need renegotiating. In this technique of making contract drafting, you need to compare the interests of the parties obtained by the identification process. This comparison can be done in front of the candidate via a Power Point presentation or written on the board if available. This will facilitate the process of exchanging interests.

Renegotiating can be of great benefit to both parties if done in a systematic and structured manner. The advantage is that the costs incurred are definitely far below the potential profit you would get if your consultant could put together the right deals.


  1. Restructuring

One of the proper contract drafting techniques is restructuring. Restructuring is the rearrangement of a company with the aim of increasing efficiency and profit, or adjusting to a dynamic market.

First, you need to understand the anatomy of the contract. By understanding the anatomy of a contract, it is hoped that you will be able to identify the articles that must be included in your contract. After understanding the anatomy, then the contract reconstruction was carried out. The right contract must be able to answer the needs of the parties.

Contracts cannot be generalized. Each contract is made for different purposes. However, there are some standard clauses that can be used when drafting a contract. These standard clauses are called boilerplate clauses.


  1. Reviewing

Reviewing is one of the tips for making contract drafting that you must implement. You can review the contents that are in the company contract and the candidates listed. What needs to be prepared?

Assistance to the negotiation team and the parties involved is very necessary so that the discussion will not go outside the existing boundaries and get their maximum interests.

Also choose a neutral and conductive location to be comfortable in expressing each other’s opinions and avoiding fuss and debate. The most strategic location is right in the middle of the domicile of both parties and not a location where one of the parties is the host.

Having an event leader can also help regulate the flow of negotiations. Contract negotiations will also be much faster with the projector screen because the parties don’t have to bother flipping through thick contracts and focus on points – points that are displayed on the projector screen.


  1. Ready for X Factors

You have to be able to anticipate X factors. You have to think about unexpected things that happen when you are on the field and have to be able to anticipate them cleverly. We need to develop a “Plan B” strategy to overcome these X factors.


  1. Realizing

In contract drafting technique, the last step is realizing (finalizing and signing). You have to make sure the process of contracting ends well between the two parties.


Trusted Business Law Consultation

Do you want to do consulting for business activities? Need a consultant who has a lot of experience in the field? Including in contract drafting? You can visit Ansugi Law to do the business law consultation you need. Ansugi Law is trusted and has handled many clients. You can do a consultation at Jalan Tegalsari No. 33, Surabaya, Indonesia.




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