This guide covers contract redlining, how to redline a document, and some best practices to follow the next time you draft a redlined contract.

A statement of work (SOW) is a document that describes in detail how a project will be executed. The purpose of an SOW is to ensure all parties are aligned on scope, deliverables, execution, and payment before signing an agreement.

A franchise agreement is the legal contract governing an agreement between the owner of a franchise and the party they allow to operate one or more of their franchised operations.

A letter of intent (or LOI) is a document that declares one party’s preliminary commitment to agree to do business with another. The letter outlines the terms of the agreement, such as key points that need to be negotiated and steps both parties agree to take before, during, and after the transaction.

A consulting agreement is a formal contract agreement created when a client requests services from a consultant. Consultants are considered a type of independent contractor, and so consulting agreements are a type of independent contractor agreement. 

Annual Contract Value and Total Contract Value each provide different information on the true value of a businesses’ contracts with their customers.