There's a lot of debate on whether and / or how to use Standard Form Templates for drafting contracts.
My views are ambivalent on the subject - will try to delve into issues from both sides.
Using standard templates for drafting commercial contracts could offer several benefits, including:
Efficiency and Expediency. Standard templates can save time and effort by providing a pre-defined structure and language for most common contract elements. This streamlines the drafting process and allows for faster turnaround times. Everyone seems short of time for work, while they have time for social media!
Consistency. Standard form templates ensure that contracts across different transactions or parties maintain a consistent format, sequence, language, and legal terms. This can help in creating a more standardised approach within an organisation and reduce the risk of inconsistencies or errors.
Legal Compliance. If updated from time to time, standard templates can incorporate latest legal best practices and compliance requirements, ensuring that contracts adhere to relevant laws and regulations. This may reduce the risk of legal disputes and non-compliance.
Risk Management. Using standardised templates can help mitigate risks by including clauses and provisions that address common issues and potential disputes. This consistency also helps in managing and mitigating legal and business risks.
Cost Savings. Actually, this is consideration number one for many. By using templates as a starting point, drafting professionals and parties can reduce the time spent on initial drafting, leading to cost savings for businesses and clients.
Review Process Streamlining. Standardised templates can facilitate quicker review processes as legal teams and stakeholders become familiar with the structure and contents of the contracts, allowing them to focus on specific deal terms and negotiations.
A word of caution here. While standard templates offer many benefits, they should be carefully tailored to each specific transaction and thoroughly reviewed to ensure that they reflect the unique requirements and nuances of each deal.
Will post on the downside of using standard templates soon.
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