#Effective Contracting

1. Purpose To ensure efficient and cost-effective contract negotiations, this article establishes that only essential rights terms—those actively utilized in contract performance—shall be included. Unused or redundant terms add unnecessary complexity and cost.

2. Scope This principle applies to all contractual agreements where negotiation time, legal review, or administrative overhead incurs measurable costs.

3. Essential Rights Terms Only the following rights terms, which are fully exercised in contract execution, shall be included:

• Performance Obligations: Rights and duties directly tied to deliverables or services.

• Termination Rights: Clauses invoked in case of material breach or mutual agreement.

• Payment Terms: Conditions governing compensation, penalties, or incentives.

• Dispute Resolution: Mechanisms used to address conflicts (e.g., mediation, arbitration).

• Confidentiality: Provisions are enforced to protect sensitive information.

• Compliance Requirements: Mandates tied to regulatory or operational adherence.

4. Exclusion of Redundant Terms. Terms not actively enforced (e.g., obsolete clauses, unused audit rights) shall be omitted to streamline negotiations and reduce costs.

5. Review Process Before negotiation, parties shall:

• Audit existing contracts to identify underutilized terms.

• Justify the inclusion of each rights term based on historical use or foreseeable need.

6. Cost Accountability Parties agree to track negotiation costs (legal fees, time, resources) and attribute excess expenses to the inclusion of non-essential terms.

7. Amendments Future modifications must adhere to this efficiency standard, requiring proof of utility before adding new terms.

8. Governing Principle "Every term added to negotiation is a cost; prioritize value over volume."

This article ensures contracts remain lean, enforceable, and cost-effective by eliminating superfluous obligations.