Why “Market Standard” Is Often the Wrong Standard in Contract Negotiations

By Gary N. Lipson, Esq. | Law Office of Gary Lipson, LLC
“Market standard” is often treated as an endpoint in negotiations when it should be only a reference point. Terms labeled as market frequently reflect outdated leverage, assumptions, or urgency rather than current business realities. Strong agreements are built by testing whether provisions still fit the deal, the counterparty, and the company’s trajectory, not by accepting precedent without scrutiny.