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Negotiation does not have a one-size-fits-all approach

On Behalf of | Feb 14, 2022 | Contract Law

There is no one right way to negotiate a contract. Oftentimes, how a business in the Plano area chooses to approach negotiation will depend on the specific circumstances.

There are however certain tips a business leader can keep in mind when entering into a contract negotiation.

At the most basic level, there are some terms which any good contract, and any productive negotiation, would address. For example, compensation should always be clearly addressed, as should the contract’s effective dates, deadlines, and other time-sensitive matters.

Also, any contract will need clearly to describe what goods or services are being traded.

A successful negotiation does not have to have a winner and loser

Many people may treat negotiations like an athletic competition in which there will be a winner and a loser. While it may be true in some negotiations that one side comes out better in the long run, it does not have to be so.

A business entering a negotiation should do a careful inventory of needs versus wants and also rank what concessions are most important to it. In the process, managers may be able better to identify true bottom lines that justify terminating a negotiation.

Managers also should think carefully about what risks the business will undertake if it signs a proposed agreement as opposed to pursuing an alternative.

Finally, the business should also evaluate the other side’s possible goals, priorities and concerns about the negotiation.

Not every contract negotiation requires the involvement of legal counsel. A routine deal, like hiring a cleaning service, may for example carry little to no risk. However, a business transaction that could impact a Texas business’s future should be negotiated with all important details in mind. When it doubt, it’s best to ask.