Contract Redlines Definition

A contract redline is a proposed change to a contract that is highlighted in red so that it stands out from the rest of the text. The purpose of a redline is to indicate that the change is still under negotiation and has not yet been agreed upon by both parties.

Redlines can be used to propose changes to any part of a contract, including the terms and conditions, pricing, or delivery schedule. In some cases, one party may send a completely revised contract with all of their proposed changes highlighted in red. In other cases, each party may highlight their own proposed changes in different colors (e.g., blue for Party A and green for Party B) so that it’s easier to see which changes are being proposed by whom.

Once both parties have reviewed and negotiated the proposed changes, they will remove the highlighting and initial next to each change that they agree to, and sign and date the revised contract. If there are any unresolved issues, those will remain highlighted in red until they are resolved.