Contract negotiations can be a major sticking point in moving your business ahead. Adopting the appropriate strategy for a given agreement depends largely on who’s on the other side of the table – be it vendors, other companies, or individual consultants. The right tactics can put your company in an ideal position to obtain what it needs to succeed, just as a bad negotiating posture can collapse the entire session in a single blow. Let’s examine several different angles your contract attorneys may use when closing that important deal for your business.
Create a Problem-Solving Atmosphere
Getting both parties to agree to terms may not be about the actual provisions in a legal agreement, but underlying issues of fairness or market placement. Separating these issues from the people themselves can help the negotiating process and bring both parties to agreement much faster. You want a legal team using this strategy to look past the people to the real interests to reach a solution. Identify them, and work to satisfy concerns related to them one by one.
Controlling the Tempo
Business contract lawyers who control the time, place, and tone of negotiations can present terms from a place of strength and keep the other party on their heels. Being in the “driver’s seat” can allow your legal team to draft the contract with terms that are favorable for your company, and force the other side to respond to your terms rather than propose their own. Framing contract terms is an enormous advantage, though obtaining that kind of power without irritating the other side is a delicate process. Coming on too strong can cause the other party to leave the negotiating table permanently.
Use Facts and Research
Focusing on the facts of a contractual matter helps keep emotion out of the negotiation process. By avoiding inflammatory statements or dirty tricks, your company can avoid tactics that drag out the contract process as well as ultimatums that can lead to its outright failure. If your attorneys aren’t maintaining a professional atmosphere, ditch them and hire a firm that’s going to keep the process civil. You should also pay attention to how much research your team performs regarding the party on the other side of the table. The more information you possess relating to the other party, the stronger your company’s positions can be.
Create Discussion not Demands
Avoid hard line stances in the contract discussion process because they shut down lines of communication. If business contract lawyers on the other side play hardball, they’re doing so for a reason – ask why. Opening up the discussion can help both parties find common ground for compromises. It’s what they call a ‘win win’ situation.
Being on the same page with your legal team in terms of tactics and strategies is essential for your business to reach a fruitful agreement. Disputes over contractual terms are a leading cause of business lawsuits, so it’s important all parties understand the language and feel confident about its terms. If you’re struggling through a business contract, call our law firm immediately for instant help.