Still Drafting Your Contracts in Word?
Really? How much is that costing you?
I recently heard a story of a services firm that generated contracts from “passed around” Word templates. At some point, somebody actually read through the contract and realized the entire liabilities and indemnification section had been deleted.
This contract form had been used for 2 years.
I’m not sure why so many people trust Word for drafting their contracts, especially multi-page agreements with complex terms. Sure, everyone thinks it’s easier for drafting and sharing with counter parties, but can you afford the risk? And we’re not talking about a click-through contract for an iPhone app (bet you don’t read those either).
The fact is there are thousands of contracts drafted in Word that are inaccurate, incomplete, the wrong version and probably putting your company at risk. These agreements bind your company for years and are typically only discovered during some important event where value has to be determined, such as an acquisition.
So a Word to the wise; know what is going into your contracts before they’re signed. It could save your company millions.