“Contracts should not just be used as shelf warmers”

A well-negotiated agreement or contract is a good start for long-term business relationship. But believing that everything will run smoothly simply because the agreement has been signed is not something Cederquist lawyers recommend. According to Maja Wettergren, Partner at Cederquist, the contract parties must also consider how they act during the contract period.

“By just using the contract as a “shelf warmer” during the agreement period  impairs the parties position without them even being aware of it. It's important to position yourself in the right way, also after the agreement has been signed,” says Maja Wettergren.

The contract period is just as important as the contract itself and, by using a considered and prudent application, it is possible to maintain and improve your position during the contract period.

 "Another aspect of this is the importance of the agrement containing good action-dictating clauses. That is, clearly-defined means of pressure and sanctions and that a contract party is also tactically capable of using such clauses in order to assert and maintain a position in front of the counterparty during the contract period.”

Maja Wettergren speaks from experience. During her 15 years as a lawyer, she has negotiated a large number of company transactions. She has also assisted on countless commercial projects which have involved project management, drafting and negotiation of different types of agreements. For the last couple of years she has also been responsible for Cederquist's “interdisciplinary” skills team for commercial projects.

See also the interview with Elsa Arbrandt which discusses strategies for contract negotiation.