The Importance of Redlining and Some Tips

A redline is a document that highlights the changes made to a contract.

A proper contract redline is essential to ensure that all parties involved in the agreement fully understand the changes made, and to prevent any misunderstandings or disputes down the line.

Here are some tips for creating a proper contract redline:

• Use a clear and concise format: The redline should be easy to read and understand. Use bullet points or numbering to make the changes clear.
• Highlight the changes: Use a different font color, bolding, or underlining to highlight the changes made to the original contract.
• Provide a summary: Include a summary of the changes made, and explain the rationale behind each change. This will help all parties involved to understand the changes and their implications.
• Identify the parties involved: Clearly identify the parties involved in the agreement, and ensure that their names are spelled correctly.
• Specify the effective date: Clearly specify the effective date of the changes made to the contract.

The importance of a proper contract redline cannot be overstated. A poorly drafted or unclear redline can lead to misunderstandings or disputes, and potentially costly legal battles.

A proper contract redline ensures that all parties involved in the agreement fully understand the changes made, and can help to avoid any potential misunderstandings or disagreements down the line. Additionally, a properly drafted redline can provide evidence of the changes made, which may be useful in the event of a dispute or litigation.

Nada Alnajafi recently released the book “Contract Redlining Etiquette” is an award-winning attorney, seasoned in-house counsel, and author of the Contract Nerds blog.