Key Takeaways:
- If you’re new to contracts, your job includes showing others why contracts matter.
- Reframing contracts as business tools (not legal red tape) helps you influence, align, and enable.
- A well-structured contract supports business delivery, clarity, and accountability.
If you’re new to contracts, one of the first challenges you’ll face isn’t a clause or a legal concept. It’s a mindset.
You’ll likely hear things like:
“Why do we need a contract for this?”
“Legal’s holding up the deal again.”
“Can’t we just use an email?”
That’s your cue. Contracts don’t just need to be written well, they need to be understood and valued by the people using them.
As a legal or contracts professional, your role isn’t just to manage risk or get things signed. It’s to help the business see contracts for what they really are: business tools that enable clarity, delivery, and trust.
I am a reforming litigator turned contract enthusiast. I was drawn into the in-house world by an entrepreneurial spirit and a desire to work within businesses, not just beside them. Since making the leap, I’ve had the opportunity to work with startups, not-for-profits, and listed companies across a wide range of industries, supporting legal teams and executives on a variety of commercial contracts.
Somewhere along the way, I fell in love with contracts. Not just the structure or the clauses (though I do love a good limitation of liability), but what smart contracts make possible: smarter business decisions, stronger relationships (both internal and external), and clarity that allows the business to move forward with confidence. After seeing firsthand how many businesses struggle with clunky contract processes, I’ve since ventured out on my own to provide targeted legal support – helping teams improve their legal operations, especially in the contracting space.
This New to Contracts column was initially written by Jack Terschluse in 2022 when he was Head of Legal at Balto to help newer contracts professional achieve success in their roles. Jack wrote nine wildly popular articles on topics such The First Five People You Should Meet as a New Contracts Professional and How to Measure Your Success. He has since joined his family business in an operations capacity.
When I was offered the opportunity to revive the New to Contracts column, I didn’t hesitate. I’m excited to help the next wave of contract professionals (legal or not) build strong foundations, feel confident in their work and support the business in practical, tangible ways. Contracts don’t have to be scary, and they certainly don’t have to be boring.
Let’s start from the beginning. This article, the first in the New to Contracts series written by me, provides a starting point for building that understanding – both for yourself and the teams around you.
1. Why the Business Doesn’t Always “Get” Contracts
Many business teams see contracts as a checkbox. Something that happens after the real decisions have been made. At worst, contracts feel like roadblocks to momentum.
That perception makes sense, especially when contracts show up late, slow things down or are full of legal language no one understands.
Your job? Help shift the conversation from:
“We need to get legal to sign off.”
to
“Let’s make sure we’re clear on what we’re actually agreeing to.”
2. What Contracts Actually Do
Contracts aren’t just formalities. They’re how businesses turn alignment into action.
They take verbal agreements, emails and handshakes and convert them into:
- Shared expectations (what’s being done)
- Defined responsibilities (who’s doing it)
- Binding obligations (how it will be achieved)
They also act as a risk buffer by spelling out how to deal with delays, changes, non-performance or disputes before they happen.
One of the most important lessons for a new legal or contracts professional to understand (and explain to the business) is this:
The size of the deal doesn’t determine the level of risk. Nor does the spend.
Just because something is low-value or low-cost doesn’t mean it is low risk.
Here’s an example:
A $2,000 contract with a small software vendor to handle customer data may seem minor. But if the terms don’t properly address privacy, cybersecurity or breach response, the business could face regulatory penalties, reputational damage and major remediation costs far exceeding the value of the deal.
So, while the business might assume contracts are only needed for “big deals,” part of your role is helping them understand that any deal involving cost, deliverables or time is worth getting right.
3. What Happens Without a Clear Contract
Clarity isn’t just a legal nicety; it’s critical for making deals work. Without it, even well-intentioned agreements can derail due to confusion, misalignment or competing expectations.
The Vague Scope Example
Let’s say you have an agreement that says, “deliver goods to site.” Which site? When? Who unloads?
These ambiguities could lead to delays, damaged goods, finger-pointing and a project that loses trust and time.
The Payment Misalignment Example
In another scenario, the contract says payment is “on completion,” but the supplier invoices monthly. So, when does the customer have to pay, upon receipt of an invoice or when the work is completed?
This misalignment can result in payments being withheld, work stopping, and both parties ending up frustrated.
Without a clear contract, even good relationships turn into bad business.
4. Your First Role as a Contract Professional: Reframe and Translate
If you’re new to contracts, your job is part educator, part translator, and part guide.
Start here:
- Get to know key leadership and stakeholders within your organization
- Read and familiarize yourself with important documents and policies
- Accelerate your contracting skills through community engagement, books, and other resources
Then, once you have a solid foundation and background of the deal specifics, ask yourself:
- Could I explain to a stakeholder why this contract matters?
- Can I spot where vague language might create risk or confusion?
- Do I understand how this contract supports the business goals?
If you can say yes, you’re not just managing contracts – you’re enabling business.
Quick Phrases for Reframing Contracts with the Business
Here are a few quick phrases you can use in emails, meetings, or intake calls that help reframe contracts with the business. Of course, you may need to tweak the tone or approach depending on who your business client is.
- “Let’s get this documented clearly so everyone knows what to expect.”
- “This contract helps make sure we can deliver and get paid.”
- “We want to avoid surprises – this keeps things clear on both sides.”
- “This helps us move forward with confidence…”
- “It’s not about slowing things down – it’s about making sure we’re aligned from day one.”
5. What’s Next
Reframing the conversation is the first step. But even a clear, well-positioned contract will fall short if it’s not achievable in practice.
Up next: Why You Can’t Work on Contracts in a Silo – how to collaborate with the business to ensure contracts are not only clear, but realistic. See you next month on the New to Contracts column, exclusively for Contract Nerds!
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