Best practices for VerifAI guidelines

A guideline, in the context of VerifAI, is a recommended principle or standard that parties strive to follow. While similar to a rule, a guideline offers more flexibility because real-world contract negotiations often require consideration of specific business nuances.

Examples of Guidelines:

1. "The confidentiality obligation should be mutually applicable."

2. "The contract duration should be a minimum of 5 years."

3. "The service provider's liability should not exceed the value of the contract"

Guidelines can vary based on the organization, the type of contract, negotiation circumstances, and more.

A guideline is not a question, since it does not have an answer.

The applicability of a guideline is assessed based on whether it's achieved within a contract or not. A guideline can be either “Met” or “Not Met” in the context of a specific contract.

When creating guides, it's essential to tailor them to distinct scenarios. For instance, at Spotdraft, we've crafted a guide specifically for "Software Services MSA (Buyer Side)" and another for "Software Services MSA (Seller Side)."

Given that guidelines can differ based on the contract type or unique circumstances, it's beneficial to provide your guides with descriptive names that reflect their specific application. This ensures clarity and ease of reference.

Guidelines are most effective when they are specific and address a single point. Combining multiple ideas or conditions in one guideline can dilute its clarity and impact.

Less Effective:

“Both parties should have the right to terminate the contracts without any reason (for convenience) with a 30-day notice, and also terminate the contract due to any insolvency or material breach by the other party.”

More Effective:

Guideline 1: “Both parties should have the right to terminate the contracts without any reason (for convenience) with a 30-day notice.”

Guideline 2: “Either party can terminate the contract in the event of insolvency or a material breach by the other side.”

By separating the guidelines, you ensure clear communication and better comprehension for all parties involved.

To achieve more accurate results, it's essential to offer ample context in your guidelines. Brief guidelines may lack clarity, leading to potential misinterpretations. By making your guidelines detailed and descriptive, you facilitate better understanding.

Less Effective: Exceptions for already known information

More Effective: There should be exceptions to the confidential information that is already in possession of the recipient

Explicitly mentioning the parties in question ensures that responses are precisely aligned with your requirements.

Less Effective:

"We can provide similar services to others" – while understandable, it lacks clarity.

More Effective:

"The service provider can offer similar services to other clients" – this version is clearer and more direct, minimizing the chance of misinterpretation.