I’ve thought it clear enough why companies don’t clean up their template contracts: Those who make the decisions are unaware of the problem. Or they’re aware of the problem but are unwilling to do anything about it, because for them the near-term cost of addressing the problem—in terms of expenditure of resources, loss of clout, or injury to their reputation or their ego—outweighs the risk and long-term drain of contracts-as-usual.
But recently someone suggested another reason: that his company is hesitant to upgrade their contracts because customers react with suspicion to any changes in their contracts with the company.
How much of an issue is this generally?
