What's Happening?
Niti Nadarajah, an award-winning general counsel, emphasizes the importance of the principle 'assume less, ask more' in the context of contract drafting and negotiation. This approach, originally rooted in diversity, equity, and inclusion, is applied
to legal practices to reduce assumptions about the other party's needs and priorities. Nadarajah argues that assumptions can lead to misaligned contracts and unnecessary negotiation cycles. By questioning default contract clauses and using contract data to identify frequently negotiated terms, legal teams can streamline the negotiation process. This method encourages a shift from entrenched positions to a more evidence-based approach, fostering clarity and collaboration in contract agreements.
Why It's Important?
The approach advocated by Nadarajah has significant implications for the legal industry, particularly for in-house counsel under pressure to expedite deals without increasing risk. By reducing assumptions and focusing on inquiry, legal teams can create more efficient and effective contracts. This not only accelerates the negotiation process but also results in agreements that are easier for internal teams to implement and for regulators to understand. The practice of asking more questions signals a willingness to engage in good faith negotiations, potentially leading to more mutually beneficial outcomes. This shift could lead to a broader cultural change within legal departments, promoting a more inquisitive and data-driven approach to contract management.
What's Next?
Legal teams may begin to adopt Nadarajah's approach by integrating contract data analysis into their negotiation processes. This could involve training team members to question the purpose behind contract clauses and empowering them to suggest simplifications based on data insights. As this practice gains traction, it may lead to a reevaluation of standard contract templates and a move towards more dynamic and adaptable contract frameworks. The broader adoption of this approach could also influence legal education and training, emphasizing the importance of curiosity and evidence-based decision-making in legal practice.
Beyond the Headlines
The adoption of 'assume less, ask more' in contract negotiations could have long-term effects on the legal profession. It challenges traditional legal practices and encourages a more collaborative and transparent approach to contract management. This shift could also impact client relationships, as legal teams that prioritize understanding and addressing client needs may build stronger, more trust-based partnerships. Additionally, the focus on data-driven decision-making aligns with broader trends in the legal industry towards technology integration and innovation, potentially leading to more efficient and effective legal services.
