21 May Contracts and Parity
For a while, I have been talking here and in other places, about the need for honesty in contract language, about using contract language that generates trust, and about respecting the other party to the contract. Along these lines is the issue of parity in contracts. Parity in contract language means that if the risk, responsibility, and potential reward are the same or closely similar, then the language for each party should be the same. Too often, though, contracts do not use equal language for the parties. A contract drafted to favor the drafter does not show respect for the other party and will create distrust. Distrust is not a solid foundation for a working relationship.