>In a legal document negotiated between parties you don't want to keep track of every version of the file, just the latest version of the offered terms and counteroffered terms.
Not true, at least from the point of view of a litigator.
The changes to an agreement can be crucial, especially in the absence of an entire agreement clause. There are, of course, rules about using evidence outside the agreement to construe its meaning, but many exceptions to this rule exist - eg, mistake. The biggest exception is ambiguity, where previous additions/deletions serve to highlight what the parties' intentions were at the time of agreement.
That would be awfully difficult to have accepted by a judge.
Even if it was, proving intent would be very difficult - after all just because you introduced a change doesn't mean I agreed to it.
Often contract clauses start off in a "no way I would sign that" state, and may get carried along for a while as you are focused on different things. The fact it existed in the history is, by itself, pretty meaningless.
Not true, at least from the point of view of a litigator.
The changes to an agreement can be crucial, especially in the absence of an entire agreement clause. There are, of course, rules about using evidence outside the agreement to construe its meaning, but many exceptions to this rule exist - eg, mistake. The biggest exception is ambiguity, where previous additions/deletions serve to highlight what the parties' intentions were at the time of agreement.