This contract tip is about how to create an execution version of a contract.
When the parties have reached an agreement on the contract terms, it is time to sign the document. But first, we have to prepare an execution version.
An execution version is what it sounds like "“ the final version of the contract that the parties sign.
Here are some of the key steps in my process:
1. Check sections numbers and references
My first step is to read only the section numbers from start to end. I make sure that Section 3.1.1 is followed by Section 3.1.2 and not Section 3.1.3.
Then I search the word "section" to check that each number reference is correct.
2. Read the contract carefully from start to finish
The goal of this reading is to catch grammatical errors and inconsistent terminology. I also look for any obvious mistakes or blanks in the document.
Remember that this review should not reopen the negotiation. I change substantive concepts only if it's a deal-breaker kind of issue, there's a clear mutual mistake in drafting, or I see something that I know the other side would want to be fixed too.
3. Add the date and incorporate all the exhibits
If there is a blank for the effective date, I add that. I also attach all the exhibits to create one final PDF with everything.
What other steps you take when preparing an execution version?
