Negotiating a business contract from either side of the table requires a clear head and a well-defined strategy. Agreeing to conditions that you can’t possibly fulfill could void the contract and render it unenforceable in court. That, however, isn’t what you should worry about from your company’s standpoint. What you should concern yourself with are the terms that lead to disadvantageous situations, impact profitability, and weaken your business across the board. In short, you need to watch out for the worst business contract decisions out there, and thankfully, our attorneys know what they are.
Overvaluing Goods and Services
A smart man once said you shouldn’t let the perfect be the enemy of the good. The same is true for valuing products and services when negotiating fees and pay rates in a contractual agreement. Agreeing to costs above market value or imbuing materials with intrinsic qualities that don’t play out on paper or in practice can harm the health of your company in the long term. Paying too much hampers your finances and can make it difficult to achieve other goals or meet contract obligations with other companies or vendors.
Including Ambiguous Contract Language
Any lack of clarity in the actual contract usually goes against the drafter in terms of settling disputes. This means that if your side wrote the agreement, and didn’t take steps to clarify interpretation of the agreement before signing, your business is at a strategic disadvantage when trying to clear it up later — before an arbitrator or judge. The court generally feels that because you had the opportunity to make your meaning clear, and did not do so, that the other side’s interpretation of a disputed provision may hold more validity. How do you remedy this matter? Before it has the chance to rear its ugly head. Use the clearest word choice possible — with defined benchmarks and due dates for deliverables — when framing a contract to avoid misunderstandings later. Trust me. You’ll be glad you did.
Going Through Negotiations Alone
Attempting to negotiate a large contract without the help of an experienced legal team could be a poison pill for your company. You’re not an attorney, and even if you are, wrangling with the other side’s legal counsel without outside assistance could mean you miss key contractual language that isn’t favorable to your company. Just because the other side isn’t pressuring or intimidating you to agree to terms, doesn’t mean you won’t feel some anxiety about negotiating without a net. You want to keep emotions out of the decision making, and go over every line with an exhaustive legislative comb. Running your enterprise takes enough of your energy as it is — don’t divide your attentions when there’s an easier, more effective, solution to be had. The value of outside opinion when it comes to legal matters for your business cannot be understated.
If you’re going through business negotiations, you need the services of experienced commercial litigation attorneys to oversee the matter on your behalf. Call our law offices today to schedule a private, confidential consultation to discuss the matter at hand. We’ve helped thousands of business owners just like you navigate the complex world of business law, and we can do the same for you. Call today.