Skip to main content
Lily Eale Peretz
NoteNegotiation7 min read

A clause that signals deeper issues

When a clause in an agreement feels unusually strict or one-sided, it is often a signal rather than the real issue. A short note on reading what sits beneath the wording, and why understanding it tends to move a negotiation further than pushing back on the text.

Sometimes, a clause in an agreement looks unusually strict or one-sided.

For example:

  1. 01very broad limitations of liability
  2. 02restrictive termination rights
  3. 03heavy control mechanisms
  4. 04strict, one-sided indemnification provisions

The instinct is often to push back. But in many cases, the clause is not the real issue. It is a signal.

It may reflect:

  1. 01lack of trust
  2. 02previous negative experiences
  3. 03internal constraints or pressures
  4. 04uncertainty about how things will play out

Sometimes the signal is not an unusually strict clause, but the clause everyone keeps postponing until the end, the issue that stays in brackets, is left "for later," or is repeatedly avoided while the parties make progress on everything else.

That avoidance can also tell you something about what matters, where the uncertainty lies, or what may ultimately be difficult to resolve.

When you address only the wording, the negotiation can become tense and circular.

When you try to understand what is driving it, the conversation often becomes more constructive, and sometimes the clause softens on its own.

A working document — not legal advice. Use alongside counsel.