Contracts are legally binding agreements that outline the terms and conditions of a business or personal transaction. Unfortunately, sometimes the terms of a contract are unfavorable or even detrimental to one party. This can leave the other party feeling trapped and helpless. However, there are steps you can take to change a bad or unfavorable contract. In this article, we will explore a few approaches to renegotiating a contract that will help you achieve better outcomes.

Re-evaluate the Contract Terms

Company contracts another company

The first step to changing a bad or unfavorable contract is to re-evaluate the terms of the agreement. This involves carefully reviewing the contract to identify areas that are causing issues. Ask yourself questions like, “Are there clauses that are unfair to me?” “Are there ambiguities in the contract that are open to interpretation?” and “Are the terms of the contract unrealistic or unreasonable?”

Once you have identified the problematic areas, you can then start to consider alternative terms that would be more beneficial. For example, if a contract stipulates that a client must pay upfront for a service, but the service has not yet been delivered, you may propose a payment schedule that aligns with the delivery timeline. It’s important to have a clear understanding of what is negotiable and what is not. This will help you to make a more compelling case when proposing changes.

The Role of CLM Systems in Contract Evaluation

CLM systems can play an important role in the contract evaluation process. These systems can help identify problem areas in a contract more efficiently and accurately. By using machine learning algorithms, CLM systems can analyze contracts and highlight clauses that may pose a risk to the organization. This saves time and reduces the chances of overlooking critical areas that may need attention. In addition, CLM systems can provide real-time visibility into contract data, making it easier to track contract performance and identify areas for improvement. With the insights provided by a CLM system, organizations can make more informed decisions when renegotiating a contract. They can also standardize contract templates, making it easier to ensure that all contracts are consistent and comply with legal and regulatory requirements.

Negotiate with the Other Party

Negotiation is a key component of changing a bad or unfavorable contract. Once you have identified the issues and potential alternatives, you can then enter into negotiations with the other party. Negotiation requires a certain level of tact and diplomacy, as it’s important to maintain a positive relationship with the other party throughout the process.

Start by outlining the issues with the current contract and proposing alternative terms. Be sure to explain why the current terms are problematic and how the proposed changes would benefit both parties. It’s important to listen to the other party’s concerns and be open to compromise. If both parties are willing to work together, it’s possible to find a solution that benefits everyone.

Bad Contract

If negotiations fail, or if the other party is unwilling to compromise, you may need to seek legal assistance. A lawyer can review the contract and provide guidance on your legal options. They can help you understand your rights under the contract and advise you on the best course of action.

Legal action should be considered a last resort, as it can be costly and time-consuming. However, if the contract is extremely unfavorable or detrimental to your business or personal interests, it may be the only option. A lawyer can help you navigate the legal system and ensure that your rights are protected.

Document the Changes

Once you have successfully renegotiated a contract, it’s important to document the changes. This ensures that both parties are clear on the new terms and that there is no confusion or miscommunication. The new terms should be clearly outlined in writing and signed by both parties. This creates a legally binding agreement that protects both parties and ensures that the new terms are enforceable in court if necessary.

It’s also important to keep a record of all correspondence related to the contract renegotiation process. This includes emails, letters, and any other documentation related to the negotiations. This can be useful in the event of any disputes or disagreements down the line. By documenting the changes and keeping a record of all correspondence, you can protect yourself and your business interests.

unfavorable contract


Changing a bad or unfavorable contract can be a daunting task, but it’s not impossible. By re-evaluating the terms, utilizing CLM systems, negotiating with the other party, seeking legal assistance if necessary, and documenting the changes, you can successfully achieve better outcomes. Just remember, a contract is not set in stone, and sometimes a little bit of negotiation can go a long way. So, don’t be afraid to speak up and stand up for what’s best for you and your business. As they say, “When life gives you lemons, renegotiate the contract to get better lemons.” Okay, maybe they don’t say that exactly, but you get the idea.

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