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Contract negotiation tips

On Behalf of | Jul 26, 2018 | Contracts, Firm News

Entrepreneurs and company executives in Michigan and Illinois know that negotiation is part and parcel of getting business done. Hammering out the details of contracts such as lease agreement, purchase deals, vendor or distributor agreements and more can be intimidating to some but there are ways to make it work effectively. 

As explained by Entrepreneur magazine, one of the most important things for people to do is to prepare for the contract negotiation process to take some time. It should be remembered that a contract is a legally binding document and rushing into a contract may have many negative consequences down the road.

Forbes recommends that before even getting to the negotiating table, a person should do their homework and clearly identify their primary goals, acceptable alternatives and deal breakers. It can also be helpful to learn as much as possible about the other party and what they are most interested in or seeking from an agreement. By nature, a contract involves some form of give and take on both sides and going into the negotiations knowing what one is willing to sacrifice may facilitate this.

While people are emotional it is best to avoid displays of strong emotion during the negotiating process, especially ones that are negative in nature. The long-term view must be kept and that view involves a future relationship between the two sides. An adversarial negotiation does not bode well for a positive working relationship going forward. Some people find it helpful to have one person identified as the party to play the tough role.