Use Of Templates And Customisation In Contract Drafting - Striking A Balance

Corp Comm Legal


Corp Comm Legal is an independent Indian law firm headquartered in New Delhi, India. The firm specialises in advising on corporate / commercial legal advisory services to its Indian and foreign clients focusing on M&A, Joint Ventures, IPR protection, Due Diligence, Contracts, Negotiation, Documentation, Strategic Advice.
There's been a lot of talk on automation tools for contract drafting process. Given the time constraints and mad rush for automation, primarily driven by cost considerations in big organisations...
India Corporate/Commercial Law
To print this article, all you need is to be registered or login on

There's been a lot of talk on automation tools for contract drafting process. Given the time constraints and mad rush for automation, primarily driven by cost considerations in big organisations handling a big number of contracts on a day-in day-out basis, let us deep dive a bit into the subject.

It is well established that using contract templates and automation tools can streamline the contract drafting process.

However, it is a mixed bag as it offers both benefits and limitations for legal professionals and businesses.

Here's a breakdown of the key advantages and challenges.

Key Benefits.

Efficiency. Contract templates and automation tools can significantly reduce the time and effort required to draft contracts, which in turn enables legal professionals to focus on more complex legal matters.

Consistency. Standard templates ensure a consistent format and language across multiple contracts originating from an organisation, reducing the risk of errors or inconsistencies in key clauses and terms of contracts.

Cost-Effective. By leveraging pre-existing templates and automation tools, businesses can save on legal fees and resources required for repetitive contract drafting tasks.

Compliance. Templates can be designed to incorporate legal and regulatory requirements, ensuring that contracts are aligned with the latest laws and industry standards.

Customisation. While using templates, legal professionals can still customise contracts to meet the specific needs of each transaction or party involved, striking a balance between efficiency and tailoring.

Major Limitations.

Lack of Unique Nuances. Templates may not always address the unique nuances of a particular transaction, leading to potential oversights in key provisions and terms.

Over-Reliance Trap. Depending too heavily on templates without careful review and customisation may lead to overlooking critical aspects of a deal, increasing the risk of disputes or legal challenges. Typical cut-copy-paste culture is quite dangerous. Isn't it?

Complexity of Transactions. For highly complex or one-off, specialised transactions, templates may not adequately capture the intricacies and may require substantial modifications, reducing their efficiency. Sometimes, repairs take more time than building something afresh.

Technological Constraints. Automation tools may have limitations in handling non-standard or evolving contractual arrangements, impacting the adaptability of the contract drafting process.

Risk of Errors. Incorrect or outdated templates, as well as errors in the automation process, can lead to legal and financial risks for businesses and legal professionals.

Therefore, to optimise the use of contract templates and automation tools, legal professionals should balance their benefits with careful customisation, thorough review, and attention to the specific needs of each contract.

Implementation of quality control measures for templates, continuous updates, and continuous training on the efficient use of automation tools can help mitigate their limitations and ensure a streamlined yet tailored contract drafting process.

Originally published by LinkedIn, 12 March 2024

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More