Using Boilerplate Contracts - Pros and Cons

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Boilerplate contracts are increasingly becoming the go-to for businesses, entrepreneurs, and legal professionals alike. They provide a level of security, protection and convenience that is otherwise impossible to achieve with ad-hoc contracts. Pre-written and standardized, they are designed to be neutral, fair and enforceable.

These benefits come at a cost though; boilerplate contracts are not tailored to the specific needs of the business so it is important to consult with Genie AI’s community template library before use - an expert team comprised of experienced lawyers who understand the various legal and business implications of any agreement. This eliminates time spent crafting a contract from scratch while also providing clarity between both parties on the terms of said agreement - protecting all involved should it ever be challenged in court.

With Genie AI providing access to millions of datapoints teaching AI what a market standard boilerplate contract should look like - coupled with its community template library - anyone can draft and customize high quality legal documents without having to pay for a lawyer or take risky shortcuts.

In summary, boilerplate contracts offer security, protection and convenience when compared with ad hoc arrangements without sacrificing accuracy or fairness – something Genie AI has dedicated itself towards since its inception in 2017. For more information on our step-by-step guidance or accessing our template library today, read on below!

Definitions (feel free to skip)

Boilerplate Contracts: Pre-written, standardized contracts that are used to quickly and easily generate contracts for various purposes.
Advantages: Benefits of using boilerplate contracts.
Disadvantages: Drawbacks of using boilerplate contracts.
Executed: Signed and made official.
Negotiate: Bargain or discuss terms of a contract.
Mediation: A process where an independent third party helps two or more parties reach an agreement.
Arbitration: A process where the parties submit their dispute to an arbitrator who will make a decision on the matter.
Compromise: An agreement between two parties in which each party gives up something in order to reach a resolution.

Contents

• Definition of Boilerplate Contracts
• Advantages of Using Boilerplate Contracts
• Time-saving
• Cost-saving
• Standardization
• Disadvantages of Using Boilerplate Contracts
• Lack of customization
• Risk of outdated provisions
• Difficulty in understanding the meaning of certain clauses
• How to Properly Use Boilerplate Contracts
• Careful review of the contract
• Negotiate to ensure contract terms meet your needs
• Consult a lawyer for advice on specific clauses
• Common Questions and Concerns about Boilerplate Contracts
• Is it legally binding?
• Can I modify a boilerplate contract?
• What happens if a dispute arises?
• Tips and Strategies for Crafting Boilerplate Contracts
• Understand the type of contract you need
• Research the industry standard for boilerplate contracts
• Draft language that is easy to understand
• Take the time to read through the whole contract
• Preparing for Negotiations
• Know the industry standards
• Be prepared to make changes to the boilerplate
• Make sure the contract meets your needs
• Negotiating Boilerplate Contracts
• Identify and negotiate key terms
• Don’t be afraid to ask questions
• Be willing to compromise
• Finalizing and Signing Boilerplate Contracts
• Final review of the contract
• Make sure all parties understand the contract
• Signing of the contract
• Conclusion: When and How to Use Boilerplate Contracts
• Understand the advantages and disadvantages of using boilerplate contracts
• Be sure to read through and understand the contract before signing
• Negotiate to ensure the terms meet your needs

Get started

Definition of Boilerplate Contracts

• Understand what boilerplate contracts are and how they are used
• Learn the differences between boilerplate contracts and customized contracts
• Research the pros and cons of using boilerplate contracts
• Determine if boilerplate contracts are the right choice for your business
• Check off this step when you have a complete understanding of boilerplate contracts and their differences to customized contracts.

Advantages of Using Boilerplate Contracts

• Boilerplate contracts are typically cheaper than custom contracts, as they are widely available and can be easily accessed online.
• They are also less time consuming to create than custom contracts, as they require minimal research.
• Boilerplate contracts are usually pre-approved by lawyers, so you don’t have to worry about any legal issues.
• They are also easier to update and amend than custom contracts.

Once you have a good understanding of the advantages of using boilerplate contracts, you can move on to the next step.

Time-saving

• Research and evaluate the boilerplate contracts available to you
• Familiarize yourself with the terms, conditions, and clauses of the boilerplate contract
• Determine how much time you need to make any modifications or additions to the boilerplate contract
• Calculate how much time you would spend creating a contract from scratch, taking into account the time you’d need to research and understand the relevant laws
• Compare the two times and decide which option is best for you
• You can check this off your list when you have determined which option will save you the most time.

Cost-saving

• Compare boilerplate contracts to custom contracts to see which will be more cost effective
• Consider the fees associated with each type of contract
• Consider if there are any additional costs associated with either option
• Once you have made a decision on which type of contract will be the most cost effective, you can move on to the next step.

Standardization

• Understand what standardization means for contracts - how it can make the process easier and more streamlined
• Research the laws and regulations related to boilerplate contracts in the jurisdiction in which you are doing business
• Identify the areas where standardization would be most beneficial for your business
• Decide on the boilerplate contract terms that will be used for each area
• Draft the boilerplate contract with language that is consistent with the laws and regulations of the jurisdiction
• Have the boilerplate contract reviewed by a lawyer to ensure its compliance with the relevant laws and regulations

When you can check this off your list: You have drafted and reviewed the boilerplate contract and it is compliant with the relevant laws and regulations in the jurisdiction in which you are doing business.

Disadvantages of Using Boilerplate Contracts

• Boilerplate contracts are not tailored to fit the specific needs of the parties involved in the contract.
• Boilerplate contracts can be outdated and not include relevant laws or regulations that have been recently passed.
• It can be difficult to find a boilerplate contract that matches your specific needs as some are for specific industries or purposes.
• It can be difficult to ensure that a boilerplate contract is enforceable in the jurisdiction of the parties involved.
• When using a boilerplate contract, the parties may not have the same understanding of the terms and conditions of the contract, leading to potential disputes.

Checklist to determine when you can move on to the next step:

• Have you identified the disadvantages of using boilerplate contracts?
• Are you aware of the potential risks associated with using boilerplate contracts?
• Are you familiar with the difficulties of finding a boilerplate contract that meets your needs?
• Are you familiar with the potential for misunderstandings associated with boilerplate contracts?
• Have you determined if the boilerplate contract you are considering is enforceable in the jurisdiction of the parties involved?

Lack of customization

• Understand what boilerplate contracts are and the advantages and disadvantages of using them
• Evaluate if boilerplate contracts are the best option for you and your business
• Consider if the boilerplate contract is customizable to meet your specific needs
• Understand the risks of using a boilerplate contract that does not allow for customization
• Consider if the cost savings of using a boilerplate contract outweigh the risks of not being able to customize it

Once you have evaluated the pros and cons of using a boilerplate contract and decided if it’s the best option for you, you can check this off your list and move on to the next step.

Risk of outdated provisions

• Understand the legal implications of using boilerplate contracts and the risk of outdated provisions
• Consider if the boilerplate contract is up to date with the latest laws, regulations and industry standards
• Review and research any changes in the law that may render the boilerplate contract obsolete
• Talk to a lawyer or an expert in the industry to make sure that the boilerplate contract is up to date
• Once you have done your due diligence to make sure that the boilerplate contract is up to date and meets your legal requirements, you can move on to the next step.

Difficulty in understanding the meaning of certain clauses

• Review the boilerplate contract carefully and consider if all of the clauses are relevant and necessary
• Research any unfamiliar clauses to ensure you understand the meaning and implications
• If any of the clauses are unclear, seek legal advice to better understand them
• Once you’ve thoroughly reviewed the contract and understand all of the clauses, you can move on to the next step.

How to Properly Use Boilerplate Contracts

• Understand the purpose and goal of the contract: Identify what the contract is supposed to accomplish, the parties involved, and the obligations they have.
• Research the boilerplate contract: Research the terms of the boilerplate contract to ensure that it meets the purpose and goal of the contract.
• Make sure the boilerplate contract is legally binding: Make sure the boilerplate contract has been legally reviewed and is enforceable.
• Ensure the boilerplate contract is up to date: Check for any recent changes or updates to the boilerplate contract to make sure it is up to date with the law.
• Negotiate the terms of the boilerplate contract: Negotiate any terms or clauses that may be open to negotiation to ensure the best deal for all parties involved.
• Customize the boilerplate contract: Add any additional clauses or terms that may be necessary to suit the purpose and goal of the contract.

Once these steps have been completed, you can move on to the next step, which is to carefully review the contract.

Careful review of the contract

• Carefully read the entire contract and ensure that it meets your needs
• Pay close attention to any sections that may have been pre-filled in or that have not been addressed
• Check for any discrepancies between the boilerplate contract and your unique requirements
• If there are any sections that need to be customized, take the time to read through them and make sure they are accurate and up-to-date
• Make sure to understand any termination clauses, as well as any potential liabilities associated with the contract
• Once you have read and understood the entire document, you can check it off your list and move on to the next step.

Negotiate to ensure contract terms meet your needs

• Have a direct conversation with the other party to discuss potential changes to the contract
• Clarify any ambiguities in the contract and make sure that each party has a clear understanding of what is expected
• Make sure that any changes to the contract are reflected in the final version that is signed by both parties
• When you and the other party have agreed to all the changes and are both satisfied with the contract, you can check this step off your list.

Consult a lawyer for advice on specific clauses

• Contact a lawyer and provide them with a copy of the boilerplate contract
• Ask the lawyer to review the contract and provide advice on specific clauses
• Discuss any changes that need to be made to the contract with the lawyer
• When you’re both satisfied with the contract, have the lawyer sign off on it
• Once the lawyer has signed off on it, you can check this step off your list and move on to the next step.

Common Questions and Concerns about Boilerplate Contracts

• Think about what type of contract you need to use for your particular situation
• Consider whether the boilerplate contract may need to be modified to fit your specific needs
• Discuss with a lawyer any potential risks and other issues that may arise from using a boilerplate contract
• Ask your lawyer if there are any clauses or sections that should be included in the boilerplate contract that are not already included
• Research the terms and conditions of the boilerplate contract to ensure that they are legally binding and enforceable

When you can check this off your list:

• When you have discussed the boilerplate contract with a lawyer and have considered any potential risks or issues that may arise from using it.
• When you have researched the terms and conditions of the boilerplate contract to ensure that they are legally binding and enforceable.

Is it legally binding?

• Understand the basics of contract law
• Determine if the boilerplate contract is valid and enforceable in your jurisdiction
• Research the boilerplate contract to ensure that it is up-to-date with the latest laws and regulations
• Have an experienced lawyer review the boilerplate contract to ensure that it is legally binding
• Once you have verified that the boilerplate contract is legally binding, you can move on to the next step in the guide.

Can I modify a boilerplate contract?

• Yes, you can modify a boilerplate contract as long as the modifications are legal and not in conflict with any of the boilerplate contract’s provisions.
• Be sure to read the boilerplate contract’s provisions first to understand which modifications are allowed before making any changes.
• Once you have read the boilerplate contract and understand its provisions, you can then make the necessary modifications to the contract.
• When you have made all the necessary modifications to the boilerplate contract, you can check this step off your list and move on to the next step.

What happens if a dispute arises?

• Understand the terms and conditions of the contract and what happens if either party does not comply with them
• Familiarize yourself with any applicable laws or regulations that might be relevant to the dispute
• Consider the potential costs associated with a dispute and the time it might take to resolve it
• Consult with a lawyer if needed to determine the best course of action
• Check to see if the boilerplate contract offers any dispute resolution options that could help resolve the dispute
• When you have an understanding of the potential costs, risks, and time associated with a dispute, you can determine if you are willing to enter into the contract or if it may be best to negotiate a new agreement
• Once you have a plan of action for resolving the dispute, you can move on to the next step.

Tips and Strategies for Crafting Boilerplate Contracts

• Research and understand the scope of your project or job and the associated risks before drafting or selecting a boilerplate contract.
• Ensure that the boilerplate contract is appropriate for the scope of your project and the associated risks.
• Understand the governing law that applies to the boilerplate contract and the jurisdiction where any dispute will be resolved.
• Read through and understand the boilerplate contract before you sign.
• Check for any errors, typos, and inconsistencies.
• Make sure that you are aware of any terms and conditions buried in the boilerplate contract that could be detrimental to you.
• Consider consulting with a lawyer before signing the boilerplate contract.
• Make sure that any changes to the boilerplate contract have been agreed upon and are properly documented.
• Ensure that all parties involved have a full understanding of the boilerplate contract.

You’ll know when you can check this off your list and move on to the next step when you have ensured that the boilerplate contract is appropriate for the scope of your project and the associated risks, read through and understand the boilerplate contract, checked for any errors, typos, and inconsistencies, and made sure that all parties involved have a full understanding of the boilerplate contract.

Understand the type of contract you need

• Identify the purpose of the agreement and what you are looking to accomplish
• Consider the type of contract you need for the particular situation, such as a sales contract, rental agreement, or non-disclosure agreement
• Research the legal requirements for the type of contract you need, such as the types of information that must be included in a sales contract
• Review any state or federal laws that may be applicable to the agreement

When you can check this off your list:

• When you have identified and researched the type of contract needed for the particular situation.

Research the industry standard for boilerplate contracts

• Read industry publications to get an idea of the type of boilerplate contracts typically used in your industry
• Speak to industry professionals to get an idea of the types of boilerplate contracts they typically use
• Search online databases to find examples of boilerplate contracts used in your industry
• Review contracts that you have used in the past to get an idea of the types of boilerplate contracts typically used in your industry
• Once you have a good understanding of the types of boilerplate contracts typically used in your industry, you can move on to the next step of drafting language that is easy to understand.

Draft language that is easy to understand

• Brainstorm the language you want to use and make sure it is concise and easy to understand
• Ensure the language utilizes the correct terminology for the industry and the contract
• Ask a knowledgeable colleague to read through it and provide feedback
• Make sure all terms are clearly defined, so there is no confusion about their meaning
• Once you have revised and finalized the language, you can check this step off your list.

Take the time to read through the whole contract

• Read the contract in its entirety, and take as much time as you need to understand it
• Make sure to pay attention to any important details, such as key definitions and any technical language used
• Check for any inconsistencies or ambiguities and make notes of any questions you have
• Look out for any potential problems or risks that could arise
• When you have read the contract thoroughly, and taken the time to consider the potential implications, you can move on to the next step.

Preparing for Negotiations

• Set a timeline for negotiations and identify potential areas of contention
• Research the industry standards of the contract and the current market conditions
• Identify any areas of the boilerplate contract that are non-negotiable
• Research the other parties involved in the negotiations and their positions
• Prepare any necessary documents that support your position
• Set up the negotiation location in advance and make sure all necessary parties are available

When you can check this off your list:
When you have completed the necessary research, identified areas of contention, and prepared any necessary documents, you can move on to the next step.

Know the industry standards

• Research the industry standards relevant to the contract you are preparing
• Consider consulting a lawyer or other experienced professional
• Learn about the requirements for compliance for the contract
• Ask for advice from other professionals in the industry
• Review case law related to the contract
• Understand what contract provisions have been held to be enforceable in court
• Check that the boilerplate contract meets industry standards
• When you have a good understanding of the industry standards and the boilerplate contract meets them, you can proceed to the next step.

Be prepared to make changes to the boilerplate

• Understand the boilerplate contract and determine which parts are non-negotiable
• Consider the areas that need to be customized to meet your needs
• Make changes to the boilerplate language to fit the specifics of your contract
• Make sure to take into account the industry standards for the agreement
• Negotiate the changes with the other party to reach an agreement
• Check that all changes are documented in the contract
• Ensure that all changes are legally valid and binding
• Once all changes have been agreed upon, you can move on to the next step.

Make sure the contract meets your needs

• Carefully read the boilerplate contract and make sure it meets all of your needs
• Analyze the boilerplate contract and identify any provisions that may need to be altered
• Consider if all of the clauses are in line with the laws of your jurisdiction and if they meet the requirements of your company
• Make sure the boilerplate contract contains all the parties involved, the agreement terms, and any other information that is necessary
• Once you have read through the boilerplate contract and made sure it meets all of your needs, you can start negotiating it.

Negotiating Boilerplate Contracts

• Reach out to the other party to negotiate the terms of the boilerplate contract
• If you need more information about the contract, ask questions and make sure you understand the terms
• Research any legal implications that may arise from the boilerplate contract
• Discuss any changes or modifications that need to be made to the contract
• Come to an agreement with the other party on any changes or modifications that need to be made
• Once all changes and modifications have been accepted, both parties should sign the contract to make it legally binding
• You can check this off your list once the contract has been signed and all changes have been agreed upon.

Identify and negotiate key terms

• Ask for a copy of the contract from the other party
• Read through the contract and identify any key terms that are not already agreed upon (e.g., payment terms, delivery dates, etc.)
• Negotiate each of the key terms with the other party in order to reach an agreement
• Once the key terms have all been negotiated and agreed upon, sign the contract and move on to the next step.

Don’t be afraid to ask questions

• Don’t hesitate to ask questions if you don’t understand any part of the contract.
• Make sure to ask any relevant questions that may arise during the negotiation process.
• Get clarification on the specific terms and conditions of the contract.
• Ask questions about why certain clauses are included and what the consequences of not following them will be.
• Speak with an experienced lawyer or a trusted advisor to get a better understanding of the legal implications of the contract.
• When you feel confident that you understand the contract and all its terms, you can check this off your list and move on to the next step.

Be willing to compromise

• Be prepared to make necessary concessions in order to arrive at a workable agreement.
• Find areas of agreement and focus on those first.
• Consider possible trade-offs and come to an agreement that meets both of your needs.
• Be willing to listen to your counterpart and consider their interests.
• Be flexible and open-minded.

When you have come to an agreement that both parties are satisfied with, you can check this step off your list and move on to the next step.

Finalizing and Signing Boilerplate Contracts

• Once both parties have agreed to the terms of a boilerplate contract, both parties must sign the agreement to make it legally binding.
• Be sure to read the contract thoroughly, and ask any questions you may have before signing the agreement.
• Signatures by both parties should be legible and dated, and both parties should receive a copy of the signed agreement.
• You should also keep a copy of the signed agreement in a secure place for future reference.
• When both parties have signed the agreement, this step will be complete and you can move on to the next step of the process.

Final review of the contract

• Carefully review the contract for any errors or missing information
• Check that all parties have signed the contract
• Ensure that all terms and conditions have been met
• Go through the document one more time to double check that all of the details are accurate
• Once you have confirmed that the contract is accurate and all parties have signed it, you can move on to the next step.

Make sure all parties understand the contract

• Ensure that all parties understand the contents of the boilerplate contract.
• Ask each party to read through the contract and explain any parts that may be unclear.
• Make sure all parties are in agreement with the contents of the contract.
• Once all parties have agreed to the terms of the contract, you can move onto the next step.

Signing of the contract

• Obtain signed copies of the boilerplate contract from each party
• Ensure each party initializes and signs on each page
• Have the parties exchange the signed copies
• Keep one copy for your records
• When all parties have signed the boilerplate contract, you have completed this step
• You can now move on to the next step, Conclusion: When and How to Use Boilerplate Contracts.

Conclusion: When and How to Use Boilerplate Contracts

• Evaluate all the pros and cons of using boilerplate contracts before making a decision
• Consider the benefits such as saving time and money, as well as the risks such as non-negotiated terms
• Research the specific terms of the boilerplate contract to ensure that it meets all the legal requirements
• Determine if the boilerplate contract is suitable for the intended purpose and take into account any potential changes or amendments that may be needed
• Once you have made your decision, sign the boilerplate contract and make sure all parties have read, understood and agreed to its terms and conditions
• When you have completed these steps, you can be sure that you have made an informed decision on when and how to use boilerplate contracts.

Understand the advantages and disadvantages of using boilerplate contracts

• Research the pros and cons of using boilerplate contracts
• Consider the potential risks and how you can mitigate them
• Understand the potential benefits of using boilerplate contracts such as time saved in the contract-drafting process
• Familiarize yourself with the various types of boilerplate contracts available
• Evaluate if using boilerplate contracts is the best option for your particular situation
• When you have a clear understanding of the pros and cons of using boilerplate contracts, you know you can move on to the next step.

Be sure to read through and understand the contract before signing

• Carefully read through the entire boilerplate contract to gain a full understanding of all of the terms and conditions
• Take the time to review each and every clause and make sure it is relevant to your situation
• Ask any questions and make sure you get clarifications on any unclear points
• Highlight any areas of the contract you do not agree with and consider negotiating these points
• Once you have a full understanding of the boilerplate contract and have negotiated any areas of disagreement, you are ready to sign the contract.

Negotiate to ensure the terms meet your needs

• Consider the areas of the boilerplate contract that need to be negotiated
• Discuss and analyze the boilerplate contract with a lawyer
• Make sure to get advice on any unfamiliar terms
• Address any areas that don’t meet your needs or expectations
• Make sure to note any changes you make to the boilerplate contract in writing
• When satisfied that the contract meets your needs, you can proceed to the next step.

FAQ:

Q: How can I ensure I’m compliant with different jurisdictions when using boilerplate contracts?

Asked by Maria on June 9th, 2022.
A: When using boilerplate contracts, it’s important to be aware of the differences between different legal jurisdictions. Depending on the country, state or region in which you are conducting business, there may be certain laws and regulations that you must comply with in order to remain legally compliant. To ensure this compliance, make sure to read up on the relevant laws and regulations and make sure that your boilerplate contracts are tailored to each jurisdiction. Additionally, it’s a good idea to consult with a qualified lawyer who is familiar with the laws and regulations of the particular jurisdiction in which you are operating.

Q: What is the difference between a boilerplate contract and a full contract?

Asked by Matthew on October 4th, 2022.
A: A boilerplate contract is a pre-written legal document that outlines the basic terms of an agreement. These agreements are typically used for common business transactions and are not tailored to any specific situation or industry. By contrast, a full contract is a more detailed document that outlines all of the specific conditions that must be met in order for a transaction to be legally binding. Full contracts often require more negotiation between parties and may also include additional clauses or provisions depending on the specifics of the transaction.

Example dispute

Suing a Company for Breach of Boilerplate Contract

• Plaintiff must be able to prove that a boilerplate contract existed between the parties.
• Plaintiff must be able to demonstrate that the defendant party breached the terms of the contract.
• Plaintiff must show that they suffered harm or loss as a result of the breach.
• Evidence must be presented that the breach caused the plaintiff’s losses.
• Damages which can be claimed must be determined, such as monetary damages, reinstatement of services, or other types of compensation.
• The plaintiff must also be able to demonstrate that the breach of the boilerplate contract was not excused by any other legal process or agreement.
• Settlement of the lawsuit may be achieved through court order, mediation, or other means.
• If damages are awarded, they must be calculated based on the evidence presented.

Templates available (free to use)

Boilerplate Contract
Boilerplate Contract Simple
Boilerplate Contractual Notices Clause

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