This guide outlines the top tips for leaders to avoid the common pitfalls in commercial contracts.
Women leading businesses, teams, and organisations through the often daunting landscape of commercial contracts face unique challenges and opportunities alike. Solicitors for Eastbourne, Brighton, or wherever you may live, can assist with legal reviews, but understanding the challenges ahead is the first step to steering clear of avoidable problems.
Whether you’re a seasoned executive or an emerging entrepreneur, navigating the fine print of a contract can feel like entering a minefield. In this blog post, our experts will explore the most common pitfalls female leaders face in commercial contracting and share empowering strategies to help you negotiate with confidence and clarity.
Commercial contracts: power tools, not paperwork
Contracts are not just legal formalities. They’re instruments of trust, collaboration, and protection. But when the terms are vague, unfair, or loaded in the other party’s favour, they can cause confusion and conflict. For women in leadership, especially in male-dominated sectors, these risks can be magnified by biases that make it harder to push back or assert non-negotiables.
According to the Government-backed FTSE Women Leaders Review, over 40% of board-level roles in the UK are now held by women. That’s a tremendous leap forward, but it also puts more women in the firing line when it comes to high-stakes decisions.
Commercial contracts are one such battlefield. GOV UK highlights the importance of knowing your rights and responsibilities from the outset helps prevent any unwanted surprises down the line.
The Hidden Danger of Skipping Heads of Terms
Before diving into the full contract, it’s wise to set out the core principles of your agreement in a heads of terms or term sheet. This document isn’t always legally binding, but it creates a clear reference point to return to when the full agreement is drafted.
Without this stage, you risk wasting time haggling over non-essentials, or agreeing to clauses that don’t reflect the original business understanding. A heads of terms document can also be a useful litmus test: if the other party resists committing to basic terms upfront, that could indicate trouble ahead.
How Ambiguity Creates Legal Grey Areas
One of the biggest risks in any contract is ambiguity. Words like “reasonable efforts,” “best endeavours,” or “as soon as possible” can seem harmless, but without precise definitions, they can trigger disputes.
Contract law relies heavily on clear, unambiguous wording. When terms are vague, you lose control over enforcement. That could leave you unable to claim damages if something goes wrong. Guidance from organisations like the Chartered Institute of Procurement and Supply highlights the importance of clarity at every stage.
Are You Really Protected by That Termination Clause?
Termination clauses are among the most misunderstood parts of a contract. Many look watertight at first glance but leave you exposed on closer inspection.
For example, does the contract let the other party walk away at short notice, without penalty? Are you on the hook for delivery obligations even after termination? Look out for clauses that only protect one party or give you limited recourse if the deal turns sour.
Equally important is payment protection. If you’re expected to wait 60 or 90 days for invoices to be settled, and that’s not viable for your business, don’t be afraid to negotiate. According to the UK’s Small Business Commissioner, being upfront about your terms is key to avoiding payment delays and disputes.
Liability Clauses: What Are You Really Signing Up For?
In every commercial agreement, there should be a defined cap on liability. This is the maximum amount either party has to pay if something goes wrong. Without this, you could find yourself exposed to unlimited financial risk. Make sure this cap is proportionate and fair — usually a multiple of the contract value.
Also check for exclusions around indirect losses. Terms that make you responsible for things like lost profits, business interruptions, or reputational damage — even when the circumstances are beyond your control — should be viewed with caution.
Don’t Overlook Intellectual Property and Confidentiality
Intellectual property (IP) is often at the heart of a commercial contract, especially in creative, tech, or consultancy work. If you create something under the agreement, who owns the output? Does the contract give away more than you intended?
Equally vital are confidentiality clauses. Ensure these protect sensitive information you might share, and aren’t drafted so broadly that you end up unable to speak about your own work. The UK’s Intellectual Property Office offers useful resources if you’re unsure where you stand.
“Standard Terms” Shouldn’t Mean Unchallengeable Terms
Often, the other party will provide a draft contract and refer to it as “standard terms.” But standard doesn’t mean fair. If something feels off, it probably is. Don’t let imposter syndrome prevent you from challenging clauses that don’t serve your interests.
This is particularly important for female leaders who might be unfairly expected to accept disadvantageous terms to appear “cooperative.” Stand your ground. Request a redlined version of the contract showing your amendments, and insist on reciprocal changes if needed.
Make Legal Advice Part of Your Strategy — Not an Afterthought
Even if you’re experienced in reading contracts, there’s no substitute for a trained legal eye. Commercial solicitors do more than spot typos. They identify systemic risks, enforceability issues, and compliance red flags that others might miss.
Consulting a solicitor early in the negotiation process can also signal to the other side that you’re serious, informed, and not to be underestimated.
Don’t Just Sign — Stress-Test Every Clause
Before finalising any agreement, take the time to run through some “what if” scenarios. What happens if your supplier goes bankrupt? If the client delays payment? If you want to end the contract early?
Running through these questions in advance helps you spot gaps in the agreement, or clauses that need more robust protections. Your legal advisor can help simulate these scenarios, and ensure the contract holds up under pressure.
Own Your Voice in Every Negotiation
Confidence comes not just from knowing your legal rights, but from trusting your judgment. Women in leadership often face stereotypes in negotiations, with assumptions that they’re less assertive or more likely to compromise. Flip that narrative.
Lead negotiations with poise. Ask questions. Clarify vague language. Push for equality. Surround yourself with allies who can support your stance and empower your decisions.
Turn Contracts Into Stepping Stones, Not Stumbling Blocks
Commercial contracts can be complex, but they don’t need to be intimidating. With the right mindset, preparation, and professional support, female leaders can take charge of contract negotiations and come away with agreements that are fair, enforceable, and future-proof.
Let each contract be a statement of your leadership — clear, confident, and uncompromising.
Final words
This article is for informational purposes only and does not constitute legal advice. It is recommended that you consult with a qualified solicitor or legal professional for guidance specific to your circumstances before entering into any commercial contract.
