Contract Negotiation is the process of deliberation that takes place between the contracting parties to reach on a final agreement. Each party to the contract negotiates for the best interest of their business. They share the overall objective, however, disagree on some relating issues. The aim is to meet a compromise on differences and conclude an outcome which can be satisfactory to all parties. Negotiation at initial phase provides the platform and tone for the ongoing, back & forth negotiation that goes on throughout the lifetime of a project. It sets the dynamics between the contracting parties and is more than resolving the differences.
Effective negotiation of a contract requires certain skills, which are—
- Preparing to negotiate
It involves various steps, such as—
- Reviewing the contract
- Identifying the interests
- Defining the goals
- Establishing the alternatives
- Analyzing the other party
- Collection of supporting data
To negotiate in a better way one should present his/her case with supportive facts & arguments, like, records, documents, files or data, expert opinion on clarification of facts, etc.
- Developing negotiation strategies
Before starting negotiation one has to plan in advance about the strategies and work upon them. It should include—
- Deciding on a negotiating team
- Compare interests
- Access leverage
- Deciding on deal makers and deal breakers
- Preparing the concessions
- Setting up of agenda
Before reaching the final agreement prior to negotiation, the document should not intend to create any legally binding obligation between the parties. Party shall have no liability or obligation to another with respect to the document unless and until they reach at the finality of the contract or at settlement stage.
Gracious offers corporate legal services including contract negotiation. We assist in extracting important clauses like compensation, term and termination, restrictive clauses and so on. To know more about our services please contact our Sales Representative.