For many businesses, contracts are treated as a necessary formality – something to sign so work can begin. Too often, they only receive close attention when a problem has already arisen. 

In our experience, the majority of commercial disputes could have been avoided with clearer drafting and earlier legal input. Preventative legal advice is one of the most effective – and often overlooked – ways to reduce cost, protect relationships, and avoid unnecessary disruption. 

Below are five contract drafting mistakes we see repeatedly, and why addressing them early makes a material difference. 

1. Ambiguous or Vague Language

Ambiguity is one of the most common causes of disputes. Clauses that appear workable at the outset can quickly become problematic when expectations diverge or circumstances change. 

Preventative legal drafting focuses on precision. Clear language around obligations, timing, and standards reduces scope for disagreement and helps ensure both parties are aligned from the outset. 

2. Poorly Defined Key Terms 

Undefined or inconsistently used terms often sit at the heart of contractual disagreements. When parties rely on assumptions rather than clarity, disputes become far more likely. 

Early legal review ensures that critical concepts – such as deliverables, payment triggers, and milestones – are properly defined, reducing uncertainty and limiting the potential for conflict. 

3. Inadequate Exit and Termination Provisions 

Many contracts are drafted with the start of the relationship in mind, not its potential end. When exit provisions are unclear or restrictive, businesses can find themselves locked into underperforming or unsuitable arrangements. 

Preventative legal advice helps ensure termination rights are clear, balanced, and commercially appropriate – protecting flexibility if circumstances change. 

4. Weak or Misaligned Risk Allocation 5. Over-Reliance on Templates 

Contracts that fail to deal properly with risk and liability leave businesses exposed. Unclear caps on liability or poorly drafted exclusions can lead to costly disputes and difficult negotiations later. 

Addressing risk allocation at the drafting stage allows businesses to understand their exposure and avoid surprises when issues arise. 

5. Over-Reliance on Templates Why Preventative Legal Advice Pays Off 

Templates are often used to save time and cost, but they are rarely a substitute for tailored legal advice. Generic contracts may not reflect the realities of a specific deal or industry. 

Preventative legal input ensures contracts are fit for purpose, aligned with commercial objectives, and updated to reflect current law and practice. 

Why Preventative Legal Advice Pays Off 

The cost of resolving a dispute – in management time, legal fees, and disruption – almost always outweighs the cost of getting the contract right in the first place. 

Businesses that prioritise preventative legal advice tend to: 

• Experience fewer disputes 

• Resolve issues more quickly when they arise 

• Protect commercial relationships 

• Operate with greater confidence 

  
  

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