Contracts oftentimes contain promises, duties, benefits and other important terms that regulate interactions or transactions of parties.
While conducting transactions, it is often the case that Negotiation precedes a definite contract document.
A contract negotiation is bargaining (give and take). A process where two or more parties in a transaction, with diverse aims and interests, seek a common ground with the bid to reaching an agreement that forms the basis of a contract.
In commerce and trade, it is often trumpeted that parties do not get what they deserve but get what they negotiate.
It is therefore important that entrepreneurs understand contract negotiations because of the frequency of business transactions they might encounter.
There are several negotiation styles but the two most prominent are the adversarial and collaborative styles.
In the adversarial style, the negotiator is concerned with dominating negotiation and getting what they want at all costs.
As for the collaborative style, the negotiator is interested in a win-win situation. There is usually less display of emotions and sentiments.
It is best that entrepreneurs analyze each transaction carefully and consider the style that best serves their interests.
Important Negotiation Tips.
- Research: Before negotiating a contract, a party must conduct accurate findings. The person who is more informed usually gets the most favorable terms in any type of dealing.
- Be in charge: Entrepreneurs should master determining the tone and pace of the negotiation. Findings show that those who control the process usually get the best from the negotiation.
- Be armed with the facts: Sentiments must be excused. Critical thinking and logic should prevail. Parties are advised to focus on the facts within their disposal. The decision-making during a negotiation must be hinged on logic.
- Set priorities: It is important that a party to a negotiation has a priority list of key areas that are of utmost interest. This helps to identify the terms that are more important than others. When the time comes to shift grounds on terms, such an individual is able to make the best trade-off.
The thoughts expressed above effectively captures the importance of mastering negotiations.
If you have got any thoughts to share, please use the comment section.