Article II · Knoxville, TN
Contracts
A contract earns its cost on the worst day of the relationship, not the best one. The clauses that feel like boilerplate at signing — limitation of liability, indemnification, termination, governing law, dispute resolution — are precisely the ones that decide the outcome when a deal goes wrong.
We draft, review, and negotiate commercial agreements for Tennessee businesses: master service agreements, vendor and supply contracts, client engagement terms, licensing and SaaS agreements, independent contractor agreements, NDAs, and the non-competition and non-solicitation provisions that Tennessee courts scrutinize closely.
For companies signing similar deals repeatedly, the higher-leverage work is usually a template rather than a series of one-off reviews. We build a form agreement and a short playbook of what your team may concede and what it may not, so routine deals close without routing every redline through a lawyer.
The clauses that decide the outcome
Commercial negotiation concentrates almost entirely on price, scope, and timeline. Those matter, but they describe the deal you are hoping for. The provisions below describe the deal you actually have if something goes wrong, and they are routinely accepted without discussion.
None of these are exotic. They appear in nearly every commercial agreement you will be sent. The question is only whether anyone read them before signing.
- Limitation of liability
- Caps what you can be made to pay, commonly at fees paid under the agreement, and usually excludes consequential damages such as the other side’s lost profits. Frequently the most financially significant clause in the document. Whether the cap is mutual, and what is carved out of it, is often worth more than the price negotiation.
- Indemnification
- Shifts the cost of third-party claims from one party to the other. Read it for what triggers it, whether it is mutual, whether it survives termination, and whether it sits inside or outside the liability cap. An uncapped indemnity can quietly undo a carefully negotiated cap.
- Termination
- How either side exits. Termination for convenience with adequate notice is usually worth more to you than a slightly better rate. Watch for auto-renewal with a short window to opt out — an evergreen term nobody diaried is how companies stay in bad contracts for years.
- Governing law and venue
- Whose law applies and where a dispute is heard. A favorable contract requiring you to litigate two states away loses much of its value, because enforcement can cost more than the amount in dispute.
- Scope and change orders
- What is included, what is not, and how additions get priced. Most disputes between competent parties acting in good faith are scope disputes, and they are almost always drafting failures rather than bad faith.
- Payment and remedies
- Timing, late-payment consequences, and your right to suspend performance for non-payment. Without a suspension right you may be contractually obliged to keep working for someone who has stopped paying.
Non-competes and restrictive covenants in Tennessee
Tennessee enforces non-competition agreements, but not automatically and not as written. Courts here require that the restriction protect a legitimate business interest — trade secrets, confidential information, customer relationships built at the employer’s expense — and that it be reasonable in duration, geographic reach, and the activity restricted. Preventing ordinary competition is not, on its own, a protectable interest.
The practical consequence surprises people: drafting aggressively can leave you with less protection, not more. A restriction a court considers unreasonable may be narrowed or declined altogether, and the employer who asked for five years and the entire southeast can end up with nothing, while one who asked for twelve months and the counties actually served gets exactly that.
Non-solicitation provisions — of customers, or of employees — are generally easier to enforce than outright non-competes, because they are narrower and map more directly onto a genuine interest. Where the real concern is protecting client relationships rather than stopping someone from working, a well-drafted non-solicit often accomplishes more than a non-compete would.
Separate from all of this: confidentiality obligations and trade-secret protections do not depend on non-compete enforceability and are worth having regardless.
Templates and playbooks: getting out of the review loop
Once a company signs more than a handful of similar agreements a year, one-off legal review becomes both the biggest cost and the main bottleneck. The fix is to move the legal judgment upstream, into a form the business can use without supervision.
A template package usually contains three things: the form agreement itself, drafted from your position rather than a neutral one; a short playbook stating which terms your team may concede without asking, which require approval, and which are absolute; and a defined escalation point where a deal is unusual enough to warrant a call.
The result is that routine agreements close in days rather than weeks, legal spend drops to the exceptions, and — the part people do not anticipate — your negotiating position improves, because sending your paper first sets the baseline the other side has to argue away from.
Scope
What this covers
- Contract drafting
- Agreements written from your operating reality — how you actually deliver, invoice, and get paid — rather than adapted from a template built for someone else’s business.
- Review and redlining
- A clear read on a contract someone else drafted: what the real exposure is, which terms are genuinely negotiable, and what to walk away from.
- Negotiation
- Direct negotiation with the counterparty’s counsel, or quiet support behind you if you would rather keep the commercial relationship in your own hands.
- Template and playbook development
- A reusable form agreement plus written fallback positions, so routine deals close at your team’s speed instead of your lawyer’s.
- Restrictive covenants
- Non-competition, non-solicitation, and confidentiality terms drafted to the scope Tennessee courts actually enforce, rather than the broadest version available.
- Breach and enforcement
- Assessment when the other side has failed to perform, and the demand, cure, or termination sequence that protects your position.
How it runs
What working together looks like
- 01
Call
What the agreement is, who the counterparty is, and what is actually at stake. Enough to tell you whether this needs a full review or a targeted look at three clauses.
- 02
Read and risk summary
A plain-English summary of the real exposure, ranked. Not a list of every deviation from ideal — the two or three things that would actually hurt you.
- 03
Redline
Marked-up document with alternative language, distinguishing what you should insist on from what is worth trading away.
- 04
Negotiation
Either directly with opposing counsel, or with us behind you if the commercial relationship is better served by you staying in front.
- 05
Execution
Final review of the signature-ready version, because terms do change between the last redline and the document actually sent.
Failure modes
What usually goes wrong
- Signing the counterparty’s form unchanged
- Their paper resolves every ambiguity in their favor — that is what it is for. The fact that a form is "standard" says nothing about whether it is standard for you.
- Reusing a template from an unrelated deal
- Inherited contracts carry the governing law, liability terms, and assumptions of the deal they were written for. The defined terms often no longer match the document.
- Leaving IP ownership unaddressed with contractors
- Without an express written assignment, copyright in work by a non-employee generally stays with the creator. Paying for it is not the same as owning it.
- Missing the auto-renewal window
- Evergreen terms with a 30- or 60-day opt-out window renew silently. Every contract with auto-renewal needs its notice deadline on a calendar the day it is signed.
- Agreeing to an uncapped indemnity
- A negotiated liability cap that carves out indemnification obligations is not really a cap. This is one of the most common ways a "capped" agreement turns out to be unlimited.
- No written scope
- When the deliverable lives in emails and a proposal deck rather than the agreement, every disagreement about what was promised becomes unresolvable.
Fit
You probably need this if
If more than one of these is true, the call is worth the twenty minutes. If none of them are, we will tell you that too.
- You are signing a customer or vendor agreement large enough that failure would hurt
- You are using a contract template you found online or inherited from a prior deal
- A counterparty sent redlines and you are not sure what you just gave up
- Your team closes similar deals repeatedly with no standard form
- You are hiring contractors and need the IP to actually belong to the company
- A customer has stopped paying and you are unsure whether you can stop working
Questions
Contracts: common questions
Are non-compete agreements enforceable in Tennessee?
Tennessee enforces non-competition agreements, but only where they protect a legitimate business interest and are reasonable in duration, geographic scope, and the activity restricted. Courts here are skeptical of agreements that simply prevent ordinary competition. Overbroad drafting is genuinely counterproductive: an agreement written too aggressively can be narrowed or refused enforcement, leaving you with less protection than a tighter one would have given.
Can I just use a contract template I found online?
You can, and it is better than a handshake, but understand the tradeoff. Templates are drafted to be broadly acceptable, which means they resolve the hard questions in whichever direction is most generic — often against the party using them. They also frequently carry the governing law and dispute-resolution terms of another state. For low-value, repeatable transactions the risk may be acceptable. For anything material, the review is far cheaper than the dispute.
What does a limitation of liability clause actually do?
It caps what you can be made to pay if something goes wrong, commonly at the fees paid under the agreement, and typically excludes consequential damages such as the other side’s lost profits. It is often the single most financially significant clause in a commercial contract, and it is regularly the one signed without discussion. Whether the cap is mutual, and what is carved out of it, is usually worth more than the price negotiation.
Should my contracts specify Tennessee law and Tennessee courts?
Generally yes, when you have the leverage to ask. Governing law and venue determine whose rules apply and where you would have to appear to enforce the agreement. A favorable contract that requires you to litigate in another state loses much of its practical value, because the cost of enforcement can exceed the amount in dispute.
Who owns work product created by an independent contractor?
By default, often the contractor rather than you. This surprises business owners regularly. Copyright in work created by a non-employee generally stays with the creator unless there is a written assignment, and the narrow "work made for hire" categories do not cover most commercial work. If you are paying for software, designs, or content, the agreement needs an express present assignment of the intellectual property.
How much does it cost to have a contract reviewed?
For a defined document we quote a flat fee before starting, and it scales with length and stakes rather than with how long the reading takes. A short vendor agreement is a modest fixed cost. A master service agreement with a schedule of work, data terms, and an indemnity structure is more. Where the engagement is an open-ended negotiation, we bill hourly and give you a range up front.
What is the difference between an NDA and a non-compete?
An NDA restricts the use and disclosure of confidential information. A non-compete restricts someone from working in a competing capacity at all. They protect different things, are analyzed differently by courts, and an NDA is considerably easier to enforce because it asks for less. Companies frequently reach for a non-compete when what they actually need is a well-drafted confidentiality and non-solicitation provision.
The other side breached. What are my options?
That depends almost entirely on what the contract says, which is why the drafting mattered. The usual sequence is a written notice of breach, an opportunity to cure if the agreement requires one, and then termination or a claim for damages. Two things to check before acting: whether you have a right to suspend performance in the meantime, and whether the notice provision specifies a delivery method — notice given the wrong way can be ineffective.
Related work
- I
Business Formation
Choosing and standing up the right structure — LLC, partnership, or corporation — so the entity holds up when it matters.
- V
Compliance
Making sure the business meets its obligations under local, state, and federal law — before someone else checks.
- IV
Mergers & Sales
Guiding the legal steps when you buy, sell, or combine companies — from letter of intent through closing.
Where we do this work
Next step
Tell us what you're building.
A short call is enough to tell you whether this is work we should be doing for you, what it is likely to involve, and what it will cost. No obligation, and no charge for the conversation.